Guidance

Practice guide 60: commonhold

Updated 10 July 2018

Applies to England and Wales

Please note that HM Land Registry’s practice guides are aimed primarily at solicitors and other conveyancers. They often deal with complex matters and use legal terms.

1. Introduction

Part 1 of the Commonhold and Leasehold Reform Act 2002 came into force on 27 September 2004 (with the exception of section 21(4) and (5)). It creates a new way of owning freehold properties which have communal facilities. The unit-holder owns the freehold interest in the unit and is a member of the commonhold association which owns and manages the common parts. Part of the common parts may be limited use or permitted use areas which are restricted as to who may use them or the kind of use to which they may be put.

The Commonhold Regulations 2004 govern the formation, running and termination of commonhold communities.

The Commonhold (Land Registration) Rules 2004 govern the documents that should accompany applications which are made to HM Land Registry.

If you wish to make an enquiry about a prospective commonhold application, please contact our commonhold officer, John Marsden, at john.marsden@landregistry.gov.uk or on 0300 006 9423.

1.1 Retention of documents lodged with applications

Original documents are normally only required if your application is a first registration.

A conveyancer may, however, make an application for first registration on the basis of certified copy deeds and documents only. For information about this, please see practice guide 1: first registrations – Applications lodged by conveyancers – acceptance of certified copy deeds.

If your application is not a first registration then we will need only certified copies of deeds or documents you send to us with HM Land Registry applications. Once we have made a scanned copy of the documents you send to us, they will be destroyed. This applies to both originals and certified copies.

However any original copies of death certificates or grants of probates will continue to be returned.

2. Preparing to register commonhold land

See Retention of documents lodged with applications, regarding retention of documents sent to us.

2.1 Land which may or may not be commonhold

Land may only be commonhold if it is already registered with an absolute freehold title. You can, however, submit an application for the first registration of the land (see practice guide 1: first registrations for how to lodge a first registration application) at the same time you submit your application to register the land as commonhold. We will complete the first registration application before the commonhold application is considered.

Land which may not be commonhold includes (Schedule 2 of the Commonhold and Leasehold Reform Act 2002):

• a flying freehold
• agricultural land
• and which relates to a contingent estate, meaning it is liable under certain statutes to revert to someone other than the registered proprietor

A commonhold development must comprise at least two units.

2.2 The commonhold community statement and articles of association

The two key constitutional documents of a commonhold are the:

• commonhold community statement – which defines the extent of the commonhold and the individual units, regulates the use and maintenance of the units and provides for the rights and duties of the unit-holders and of the commonhold association
• articles of association – which defines the association’s powers and covers matters such as membership, meetings and the appointment and powers of directors

Both documents must be completed in accordance with the Commonhold Regulations 2004 before an application for the registration of commonhold land can be submitted to us.

You cannot apply for a commonhold community statement or the articles of association to be designated exempt information documents (rule 3(3)(c) of the Commonhold (Land Registration) Rules 2004).

2.3 The commonhold community statement plan

To meet our requirements it is important that the plans you lodge satisfy the technical requirements and specifications outlined in this section. We are always happy to consider any special circumstances that might apply to a particular development and discuss the best way forward.

2.3.1 Requirements and specifications

You can see an example of a residential commonhold community statement plan in Appendix A.

• The plan must be on paper no larger than A0 size
• The plan must clearly show the scale and orientation and be drawn to the scale quoted thereon. The preferred scale is 1/500 although 1/1250 may be satisfactory if details of the layout including individual plot boundaries can be shown clearly. However, where the boundaries are intricate or complex, such as a boundary within a building, a larger scale may be necessary
• Plans marked ‘For identification only’ or ‘Do not scale from this drawing’ or any similar phrase are not acceptable
• Plans which bear a statement of disclaimer intended to comply with the Property Misdescriptions Act 1991 are similarly not acceptable
• You must base the plan on an accurate survey, plotted to the chosen scale. The accuracy must be within the plottable limits of the scale, i.e. distances scaled from the plan between well defined points of detail should be accurate to within 0.3mm at map scale plus one part in one thousand of the distance measured. For land surveyors, this specification gives the following tolerances:

Distance scaled	1/500	1/1250
100m	0.15+0.1 = 0.25m	0.375+0.1 = 0.475m
200m	0.15+0.2 = 0.35m	0.375+0.2 = 0.575m
500m	0.15+0.5 = 0.65m	0.375+0.5 = 0.875m
100m	0.15+1.0 = 1.15m	0.375+1.0 = 1.375m

During the survey, you should site control stations in safe areas, thereby ensuring that the setting out of works and the final ‘as built’ survey are all based on the datum used for the original survey.

You must show any measurements in metric form.

The plan must show the boundaries of the commonhold land in relation to the boundaries of the registered freeholder’s title and the boundaries of the commonhold units in relation to the boundaries of the commonhold land.

The plan must define the extents of the commonhold units using a colour and number reference.

The plan must define the extent of the commonhold land using a colour reference distinct from the colour used to define the commonhold units.

The plan must show any access drives and pathways that form unit boundaries.

If two or more floors of a block of units are co-extensive and the layout and extents of the units are identical, it usually suffices if you supply a plan of the single floor. The plan must show the number distinguishing each unit and state the floor level of each unit.

The commonhold community statement may contain additional plans to those that define the extents of the commonhold and units. The commonhold community statement must make clear which plan defines the extents of the commonhold and units and which are for another purpose.

You must lodge a certified copy of the commonhold community statement for registration. If HM Land Registry finds the commonhold community statement plan has not been prepared in accordance with these requirements and specifications when the commonhold community statement is lodged for approval see The commonhold community statement plan approval or registration, it will be rejected as described in Insufficiently clear or accurate plans.

The facility provided by rule 14 of the Land Registration Rules 2003 for the electronic delivery of applications is not yet available for the commonhold community statement.

2.3.2 Reconciliation with Ordnance Survey maps

HM Land Registry bases its plans on large scale Ordnance Survey maps. In the case of developing estates these are normally drawn at 1/1250 scale. A developer can, therefore, be confident that, where there is conformity between the Ordnance Survey map and the developer’s site plan, we will have little difficulty in relating the latter to our records.

2.3.3 Commonhold community statement plan approval

We offer an optional service to approve the commonhold community statement plan before you submit your application. The whole of the commonhold community statement must be lodged, although only the plan will be approved. The complete commonhold community statement is required to ensure any references shown on the plan are referred to and the definition of the properties within the commonhold agrees with the plan. We aim to complete the approval as soon as possible. There is no fee for this service and it will avoid your application being rejected as described in Insufficiently clear or accurate plans.

You need only lodge a copy of the commonhold community statement for approval.

When using this service, it will assist HM Land Registry to update its map records and aid processing the subsequent application for registration if you provide the following information in a covering letter:

• whether development has commenced, and if so, what stage it is at and when completion is expected, or
• when development will commence and when completion is expected, and
• when the commonhold community statement will be lodged for registration

When the commonhold community statement is lodged for registration, ensure it is accompanied by the letter HM Land Registry issues confirming approval.

2.4 Incorporation of the commonhold association

The commonhold association must be incorporated before the application for registration is submitted at HM Land Registry. You should make and keep a certified copy of the articles of association before you apply to incorporate the commonhold association, as the Registrar of Companies will retain the original articles of association. You will need to lodge the certified copy with your application for registration at HM Land Registry.

2.5 Consents to registration

As a result of section 3(1) of the Commonhold and Leasehold Reform Act 2002 and regulation 3 of the Commonhold Regulations 2004 the registration of the land as commonhold land requires the consent of:

• the registered proprietor of the freehold estate in the whole or part of the land
• the registered proprietor of a leasehold estate in the whole or part of the land granted for a term of more than 21 years
• the estate owner of any unregistered freehold estate in the whole or part of the land
• the estate owner of any unregistered leasehold estate in the whole or part of the land granted for a term of more than 21 years
• the proprietor of a charge protected by an entry in the register over the whole or part of the land
• the owner of any mortgage, charge or lien for securing money or money’s worth over the whole or part of any unregistered land included in the application
• the holder of a lease granted for a term of not more than 21 years that will be extinguished under sections 7(3)(d) or 9(3)(f) of the Commonhold and Leasehold Reform Act 2002. However, you do not have to obtain the consent of the holder of such a lease if they are entitled to the grant of a new lease:
  • of the same premises
  • on the same terms
  • at the same rent
  • for a term equivalent to the unexpired term of the extinguished lease
  • which does not contain any provision which would create a term of more than 21 years, and the lessee has protected their entitlement to the grant of a new lease by registering a notice in the register of the freehold title or in the land charges register in the name of the estate owner of the freehold title

The above persons must use form CON1 when giving their consent. If the consent is made conditional, the statement of truth accompanying the application must make it clear that all conditions have been fully satisfied (see Statement of truth. If a court has made an order dispensing with the need for consent in specified circumstances, the court order must also be lodged (section 3(2)(f) of and Schedule 1(6)(b) to the Commonhold and Leasehold Reform Act 2002). If the order is conditional, the order must be accompanied by evidence that the condition has been complied with (Schedule 1(6)(2) to the Commonhold and Leasehold Reform Act 2002).

Consent will be deemed to have been given by the applicant for registration and anyone deriving title from the applicant (regulation 4(5)(b) of the Commonhold Regulations 2004).

Subject to any condition imposing a shorter period, a consent will lapse if no application is made within 12 months of the date it was given. During the validity of a consent, it will also be binding on the successor in title to the person giving the consent. It cannot be withdrawn after the application has been submitted to us (regulation 4(7) of the Commonhold Regulations 2004). The statement of truth accompanying the application must confirm that the consent has not lapsed or been withdrawn.

Where a consent has been lodged which relates to an unregistered interest or is the subject only of a notice, caution or restriction, you must also lodge evidence that the person whose consent has been lodged is the person who is entitled to that interest at the time the consent was given. This can take the form of a conveyancer’s certificate (rule 9(2) of the Commonhold (Land Registration) Rules 2004).

2.6 Multiple site commonholds

An application to register commonhold land can be made by two or more persons who are the registered proprietors of different registered titles if the following conditions are satisfied:

• all the land must be included in a single commonhold community statement (section 57(2) of the Commonhold and Leasehold Reform Act 2002)
• an individual unit cannot straddle more than one title (regulation 7 of the Commonhold Regulations 2004).

This means that during the transitional period, until the common parts vest in the commonhold association, there could be more than one proprietor of the common parts. Each proprietor would be registered as the proprietor of a different part of the common parts title.

3. Applying to register commonhold land

See Retention of documents lodged with applications, regarding retention of documents sent to us.

3.1 Form CM1

An application to register a freehold estate in commonhold land must be made in form CM1.

You can either apply for a registration:

• without unit-holders when it will be a new development
• with unit-holders when an existing leasehold or freehold development is being converted to commonhold

If your application is for a registration with unit-holders, a Section 9 Statement in form COV must accompany form CM1. This statement contains:

• the request by the applicant that section 9 of the Commonhold and Leasehold Reform Act 2002 (Registration with unit-holders) applies to the application
• a list of the commonhold units, giving for each one the name and address of the proposed initial unit-holder or joint unit-holders (section 9(2) of the Commonhold and Leasehold Reform Act 2002)

The application will be rejected if the section 9 statement in form COV does not accompany form CM1.

3.2 Documents required to support an application to register commonhold land

You must, where applicable, lodge the following documents with your application:

• a certified copy of the commonhold association’s current certificate of incorporation
• a certified copy of the commonhold association’s articles of association
• a certified copy of the commonhold community statement
• consent to registration in form CON1 from those interest-holders listed in Consents to registration, or a court order dispensing with consent if a person cannot be identified after all reasonable efforts have been made to ascertain the identity of the person required to give consent or cannot be traced after all reasonable efforts have been made to trace them; or has been sent the request for consent and all reasonable efforts have been made to obtain a response but the person has not responded, (regulation 5 of the Commonhold Regulations 2004)
• a certificate (there is no prescribed form) given by the directors of the commonhold association confirming that:
  • the articles of association comply with the Commonhold Regulations 2004
  • the commonhold community statement satisfies the requirements of the Commonhold and Leasehold Reform Act 2002
  • the land is not land which cannot become commonhold land (see Land which may or may not be commonhold)
  • the commonhold association has not traded and has not incurred any liability which has not been discharged
• a statement of truth given by the applicant (see Statement of truth)

If your application is for a registration with unit-holders, evidence of the discharge of all charges registered on the leasehold titles (which will be closed) must be lodged. If the appropriate lender is taking a charge on the new commonhold unit, a new charge or a deed of substituted security must be lodged with your application.

The application will be rejected if all the appropriate documents do not accompany your application.

3.2.1 Statement of truth

The statement of truth must:

• be in a form that meets the requirements of rule 215A of the Land Registration Rules 2003 (see Appendix B: providing a statement of truth)
• list all the consents that have been obtained, or the court orders dispensing with consent
• confirm that a restriction in the register does not protect an interest in respect of which the consent of the holder is required, or if it does protect such an interest, that the appropriate consent has been obtained
• confirm that there are no other consents required by section 3 of the Commonhold and Leasehold Reform Act 2002 and the Commonhold Regulations 2004
• confirm that no consent has lapsed or been withdrawn
• confirm that if a consent is subject to conditions, all conditions have been fully satisfied.

Also, where the application involves the extinguishment of a charge of part of a unit, under section 22 of the Commonhold and Leasehold Reform Act 2002, that is the subject of an entry in the register of title, the statement of truth must:

• identify the charge to be extinguished
• identify the registered title of the owner of the charge
• give the name and address of the owner of the charge
• confirm that the consent of the owner of the charge has been obtained

3.3 Fees

The fees payable to register commonhold land are as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

4. Completing the commonhold application

4.1 Registration without unit-holders

4.1.1 During the transitional period

We will register the common parts in one title and each individual unit in a separate title. At this stage all titles (common parts and units) will be registered in the name of the applicant. All titles will have the following entry made in the property register to denote that the title is part of a commonhold:

“The freehold estate in the land is registered as a freehold estate in commonhold land under Part 1 of the Commonhold and Leasehold Reform Act 2002.”

The following entry will also be made in the property register but will be cancelled without application at the end of the transitional period when the common parts title is vested in the commonhold association:

“The rights and duties conferred and imposed by the commonhold community statement will not come into force until the end of the transitional period referred to in section 8(1) of the Commonhold and Leasehold Reform Act 2002.”

The common parts title will also have the following entry:

“This title comprises the common parts of the commonhold defined by the commonhold community statement. The land in this title has the benefit of and is subject to the rights and duties conferred and imposed by the commonhold community statement.

NOTE 1: Version …. of the commonhold community statement is dated ………

NOTE 2: Version ….. of the memorandum and articles of association of the commonhold association is dated ……………..

NOTE 3: Copies filed.”

The unit titles will have a similar entry except that they will refer to the copies of the commonhold community statement and articles of association being filed under the common parts title.

The common parts title also has either of the following entries:

“The commonhold units described in the commonhold community statement referred to below have been removed from this title.”

or

“The commonhold units within the parts tinted green on the title plan and described in the commonhold community statement referred to below have been removed from this title.”

The limitations imposed on a unit-holder and a commonhold association by the Commonhold and Leasehold Reform Act 2002 or the Commonhold Regulations 2004 are reflected in the wording of the restrictions entered in the proprietorship register of the common parts and unit titles respectively.

The restriction on the common parts title is in form commonhold association as follows:

“No charge by the proprietor of the registered estate is to be registered other than a legal mortgage which is accompanied by a certificate by a conveyancer or a director or secretary of the commonhold association that the creation of the mortgage was approved by a resolution complying with section 29(2) of the Commonhold and Leasehold Reform Act 2002.”

The restriction on the unit title is in form CB as follows:

“No disposition by the proprietor of the registered estate (other than a transfer or charge of the whole of the land in the title) is to be registered without a certificate by a conveyancer or a director or secretary of the commonhold association that the disposition is authorised by and made in accordance with the provisions of the Commonhold and Leasehold Reform Act 2002 or the regulations made under that Act.”

All entries on the pre-commonhold title, eg charges, cautions, notices etc will be carried forward to all these titles (common parts and units) unless evidence of their discharge, cancellation or withdrawal accompanies the application to register the land as commonhold.

4.1.2 After the transitional period

When a person other than the applicant becomes entitled to be registered as the proprietor of one or more, but not all, of the commonhold units (section 7(3) of the Commonhold and Leasehold Reform Act 2002), this signals the end of the transitional period. We will then:

• register the unit/s which has/have been transferred in that person’s name
• remove from the property register of all the unit titles the entry relating to the transitional period
• register the common parts in the name of the commonhold association
• remove entries relating to charges from the common parts title as such charges will have been extinguished (section 28(3) of the Commonhold and Leasehold Reform Act 2002)
• cancel notice of any leases which have been extinguished and close the titles if the leases are registered (section 7(3)(d) of the Commonhold and Leasehold Reform Act 2002)

All the other units remain registered in the original applicant’s name until they are sold.

We will get the details of the address for service of the commonhold association to include in the proprietorship register of the common parts title from the original application. If this address, or any other address for service, changes you must remember to notify HM Land Registry immediately.

4.2 Registration with unit-holders

This involves an existing freehold and/or leasehold development where the owners/lessees wish to become a commonhold.

We will register the commonhold association as the proprietor of the common parts title. The unit titles will be registered in the names of the unit-holders listed on the Section 9 Statement (form COV) accompanying form CM1 (see Documents required to support an application to register commonhold land). Entries will be made in the property and proprietorship registers of the common parts and unit titles as outlined in During the transitional period, although the entry relating to the transitional period will not be made.

If it was a leasehold development, the leasehold titles under which the units were formerly registered will be closed. Evidence of the discharge of all charges on the leasehold titles must therefore be lodged. If the appropriate lender is taking a charge on the new commonhold unit, a new charge or a deed of substituted security must be lodged with your application.

We will remove entries relating to charges from the common parts title as such charges will have been extinguished.

If a lease has been noted the entry will be removed.

4.3 Documents retained by HM Land Registry

We will retain certified copies of the commonhold community statement and articles of association. The original articles of association are retained by the Registrar of Companies. The commonhold association is advised to retain the original commonhold community statement at all times.

If you want official copies of the commonhold community statement or articles of association, you must complete form OC2 and include the title number of the common parts title.

5. Other applications

See Retention of documents lodged with applications, regarding retention of documents sent to us.

5.1 Application for commonhold land to cease to be registered as commonhold during the transitional period

After registering land as commonhold without unit-holders, a registered proprietor may decide that they do not want to create a commonhold development. During the transitional period, that is before any of the units have been sold, they may apply for the land to cease to be registered as commonhold (section 8(4) of the Commonhold and Leasehold Reform Act 2002).

This application must be made in form CM2. A fee is payable as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

The consent provisions apply to these applications in the same way that they apply to the original application to register the land as commonhold land (section 8(5) of the Commonhold and Leasehold Reform Act 2002). Consents in form CON 2 must therefore be lodged from all those people listed in section 3(1) of the Commonhold and Leasehold Reform Act 2002 and in Regulation 3 of the Commonhold Regulations 2004 and whose interest subsists at the time of the application. Where a consent has been lodged which relates to an unregistered interest or is the subject only of a notice or restriction, you must also lodge evidence that the person whose consent has been lodged is the person who is entitled to that interest at the time the consent was given. This can take the form of a conveyancer’s certificate (rule 9(2) of the Commonhold (Land Registration) Rules 2004). The application must also be accompanied by a statement of truth which meets the requirements set out in Statement of truth as far as they are applicable.

When the application is completed, the commonhold entries will be removed and the titles will revert to ordinary freehold. We will consider the applicant’s request to amalgamate all of the titles back into one title. If there is no such request the individual titles will be retained as freehold titles without the commonhold entries.

5.2 Application to register an amended commonhold community statement or altered articles of association

The procedure for amending the commonhold community statement or altering the articles of association is contained in the Commonhold and Leasehold Reform Act 2002 and the Commonhold Regulations 2004 which support it. An amendment may either change the extent within the commonhold or be purely textual. Whenever the commonhold community statement is amended (including during the transitional period or when the commonhold community statement is amended by a successor commonhold association) or the articles of association are altered, a new version of the document incorporating the amendment or alteration must be prepared. If a new version of the commonhold community statement or articles of association incorporating the amendment or alteration is not lodged with the application for its registration, the application will be rejected. A new version of the commonhold community statement or articles of association must be dated as of the date that the amendment or alteration is made. We will allocate version numbers which will be reflected in the register entries.

An amendment to the commonhold community statement or an alteration of the articles of association has no effect until registration of the amended commonhold community statement or altered articles of association.

The application must be made in form CM3 and, as appropriate, be accompanied by:

• a certified copy of the new version of the articles of association, or
• a certified copy of the new version of the commonhold community statement
• the consent of the unit-holder and their charge (if any) if the extent of a unit has been changed or a court order dispensing with consent (section 23(1) and section 24(2) and (3) of the Commonhold and Leasehold Reform Act 2002)
• the consent of the charge of any unit title from which land has been added to the common parts title (section 30(2) of the Commonhold and Leasehold Reform Act 2002), and
• a certificate given by the directors of the commonhold association (which does not need to be in a prescribed form) that the amended commonhold community statement satisfies the requirements of the Commonhold and Leasehold Reform Act 2002 or that the altered articles of association complies with the Commonhold Regulations 2004. A separate certificate does not need to be lodged in relation to each unit which has been affected by the amendment.

The common parts title number must be included in panel 2 of form CM3. If the extent of any of the units has changed, the title numbers of those units must be included in panel 3.

When an application is made to amend the commonhold community statement, the amendments must be summarised in panel 10 of form CM3:

• Where the extent of the units and/or the common parts are amended, the amendments must be reflected on a new plan attached to the commonhold community statement. The new plan must comply with The commonhold community statement plan or the application will be cancelled.

• Where the extent of the units and/or the common parts remain unchanged, a plan must still be attached to the commonhold community statement because an amended commonhold community statement cannot refer to an earlier commonhold community statement. If you use a new plan it must comply with The commonhold community statement plan or the application will be cancelled.

5.2.1 Fees

The fees payable to register an amended commonhold community statement or altered articles of association are as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

5.2.2 Application to register the extinguishment or extension of a charge over a unit

If the amendment of the commonhold community statement removes land from a unit over which there is a charge, the charge will be extinguished in respect of the land which has been removed (section 24(4) of the Commonhold and Leasehold Reform Act 2002). If it adds land to a unit, the charge will be extended so as to relate to the land which is added (section 24(5) of the Commonhold and Leasehold Reform Act 2002). Regulation 10 of the Commonhold Regulations 2004 prescribes that when this happens notice must be served on HM Land Registry. This notice must be in form COE and be included with the application to register the amended commonhold community statement. There is no fee payable.

5.3 Application to add land to a commonhold development

Application must be made in form CM4 and be accompanied by:

• the consent in form CON1 from those interest holders listed in Consents to registration or a court order dispensing with consent if a person cannot be identified after all reasonable efforts have been made to ascertain the identity of the person required to give consent; or cannot be traced after all reasonable efforts have been made to trace them; or has been sent the request for consent and all reasonable efforts have been made to obtain a response but the person has not responded (regulation 5 of the Commonhold Regulations 2004)

• a statutory declaration which satisfies rule 20(4) of the Commonhold (Land Registration) Rules 2004
• an application in form CM3 to register the commonhold community statement which has been amended to include the added land (see Application to register an amended commonhold community statement or altered articles of association
• a certificate given by the directors of the commonhold association (there is no prescribed form) confirming that the land is not land which cannot be commonhold land (see Land which may or may not be commonhold), and that the application was approved by a unanimous resolution

5.3.1 Fees

The fees payable to add land to a commonhold development are as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

5.4 Application to note the surrender of a development right

A commonhold community statement may confer rights on the developer of a commonhold development which allow them to:

• complete the work on the development
• advertise the sale of the units
• add land to or remove land from a development
• appoint and remove directors of the commonhold association

These are called ‘development rights’ which can be surrendered by the developer (section 58 of and Schedule 4 to the Commonhold and Leasehold Reform Act 2002). If the developer surrenders any rights, they must notify HM Land Registry by sending in a notice in form SR1 with an application in form AP1 against the common parts title (section 58(6) of the Commonhold and Leasehold Reform Act 2002). We will then file a copy of the SR1 with the common parts title and put a note in the property register of that title referring to the filed notice. We will also inform the commonhold association, by way of notice, that rights have been surrendered.

The fee payable to note the surrender of a development right is as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

5.5 Applications to register transfers of part of unit and common parts titles

If the commonhold association transfers part of the common parts, or a unit-holder transfers part of a unit, two applications must be lodged together:

• in form AP1 to register the transfer of the land transferred
• in form CM3 to register the commonhold community statement which has been amended to reflect the change in extent of the common parts and/or units. See Application to register an amended commonhold community statement or altered articles of association

If the application in form AP1 is not accompanied by the application in form CM3 it will be rejected (rules 15 and 16 of the Commonhold (Land Registration) Rules 2004) as the commonhold community statement, which is filed with and referred to in the register, will not then accurately reflect the revised layout of the commonhold development. Similarly, if the application to amend the commonhold community statement is not accompanied by the application in form AP1, it will be rejected (rules 18 and 19 of the Commonhold (Land Registration) Rules 2004).

The only exception is when land that forms part of a unit is added to the common parts. Although this can be effected by transfer or solely by an amendment to the commonhold community statement, an amended commonhold community statement is always required (section 30 of the Commonhold and Leasehold Reform Act 2002).

Normal scale fees are payable on the value of the transfer but no fee is payable to register the amended commonhold community statement as it accompanies the transfer.

5.6 Application to register a successor commonhold association

Where a commonhold association has been wound up by the court and a succession order has been made, (section 51 of the Commonhold and Leasehold Reform Act 2002) an application to register the successor commonhold association must be made in form CM6.

It must be accompanied by:

• a certified copy of the succession order, which may make provision as to the treatment of any charge over all or part of the common parts or require HM Land Registry to take action of a specified kind
• a certified copy of the winding up order
• a certified copy of the articles of association of the successor commonhold association

A copy of the successor commonhold association’s articles of association will be filed and the insolvent commonhold association’s articles of association will be marked ‘cancelled’ and retained by us. We will also take any action required by the succession order. However, if any charge is to be discharged over the common parts, or any part of the common parts, the usual evidence of discharge must be lodged.

There is no fee payable to give effect to the court order, but, if changes to the commonhold community statement are required, a new certified copy of the commonhold community statement must be prepared and lodged with HM Land Registry using form CM3 and fees paid (if appropriate) (see Application to register an amended commonhold community statement or altered articles of association).

5.7 Application to register the termination of a commonhold registration

See Retention of documents lodged with applications, regarding retention of documents sent to us.

5.7.1 Voluntary winding up

When a commonhold is voluntarily wound up (sections 43-49 of the Commonhold and Leasehold Reform Act 2002), a termination application in form CM5 must be made. It must be accompanied by:

• a termination statement that will specify the commonhold association’s proposals for the transfer of the land and how the assets of the commonhold association will be distributed
• evidence of the liquidator’s appointment
• notification that the liquidator is content with the termination statement, or a copy of the court order which determines the terms of the termination statement
• the fee payable for the termination as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees

We will then register the commonhold association as the proprietor of all the commonhold units and remove the commonhold entries from all the titles. The liquidator will then dispose of all the titles in accordance with the terms of the termination statement.

5.7.2 Court winding up

Where the court has made a winding-up order and has not made a succession order in respect of the commonhold association, an application must be made to terminate the commonhold registration in form CM5.

It must be accompanied by:

• notification by the liquidator that the court has made a winding up order and has not made a succession order
• any directions giving the liquidator supplementary powers
• any notice of the liquidator vacating their office after the final meeting of the commonhold association
• any notice of completion of winding up
• any application made to the Registrar of Companies that there are insufficient assets; or of an early dissolution or of completion of winding up
• any other matter that in the liquidator’s opinion is relevant to us (section 54(2) of the Commonhold and Leasehold Reform Act 2002)
• the fee payable for the termination as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees

When we receive these notifications, we will remove the commonhold entries from the common parts and all the unit titles. The titles will then be ordinary freehold titles and unit-holders will not be able to rely on the rights contained in the commonhold community statement, eg rights of way or support. The unit-holders will therefore need to make arrangements with the liquidator, or whoever the common parts are transferred to, to ensure that new deeds are completed granting them the necessary rights etc.

When a court has made a winding up order and a succession order see Application to register a successor commonhold association.

5.7.3 Termination by court order

Under the Commonhold and Leasehold Reform Act 2002 the court can make an order for all the land in relation to which a commonhold association exercises functions to cease to be commonhold land (section 55 of the Commonhold and Leasehold Reform Act 2002) and to become vested without further assurance.

An application must be made in form AP1 accompanied by the court order to which HM Land Registry will then give effect. There is no fee payable (Schedule 4 of the current Land Registration Fee Order refers).

6. Cancellation and rejection of applications

6.1 Insufficiently clear or accurate plans

Rule 8 of the Commonhold (Land Registration) Rules 2004 states that the registrar may reject an application on delivery or may cancel it at any other time if the plans submitted with it (whether as part of the commonhold community statement or as part of any other document) are insufficiently clear or accurate.

The registrar will also reject an application where the plans are inconsistent with the descriptions in Annex 2 of the commonhold community statement or conflict with the latest Ordnance Survey map.

To avoid rejection, ask HM Land Registry to approve your plans before you submit your application.

The commonhold community statement plan sets out the requirements and specifications for a commonhold community statement plan.

Practice guide 40: HM Land Registry plans: guide overview contains guidance and information on preparing plans for registration purposes.

6.2 Applications otherwise not in order

Rule 16 of the Land Registration Rules 2003 (Applications not in order) applies to applications under the Commonhold and Leasehold Reform Act 2002 in the same way as it applies to applications under the Land Registration Act 2002.

This allows us to raise requisitions concerning the application and, if it appears to be substantially defective, reject it on delivery or cancel it at any other time.

HM Land Registry would consider applications to be substantially defective if the correct documents are not lodged.

We would also consider an application to register a multiple-site commonhold to be substantially defective if a unit was situated partly on one part site and partly on another in contravention of regulation 7 of the Commonhold Regulations 2004.

Practice guide 49: return and rejection of applications for registration contains advice on how to avoid rejection of applications.

See Retention of documents lodged with applications, regarding retention of documents sent to us. If your application is returned you will receive back copies of the scanned documents.

7. Preliminary service applications

7.1 Search of the index map

When you make a search of the index map in form SIM and include details of a property which is a commonhold unit, the search result will reveal:

• the title number of the unit
• any registered leasehold titles of the unit
• the title number of the common parts

When you describe the common parts in the property description, the search result will reveal:

• the title number of the common parts
• any registered lease of the common parts
• the title numbers of all the units in the commonhold development
• any registered leasehold titles of a unit
• any other freehold or leasehold title not part of the commonhold development but included within its geographical boundaries, eg underground railways, mine workings etc

If a person who applies for a search of the index map requires the title number of all the units in a commonhold development, they must insert the common parts title number followed by the words ‘common parts’ in panel 2 of form SIM or supply a plan of the commonhold development showing sufficient detail to enable the land to be clearly identified on the Ordnance Survey map.

Practice guide 10: index map: official search contains further guidance and information with regard to applying for an official search of the index map.

Note: Normal fees apply for a search of the index map in respect of commonhold titles.

If you do not require indemnity provisions in respect of an index map search you could consider using MapSearch. This service is available free of charge for Business e-services customers who have portal access and provides immediate search results.

7.2 Official copies

A request for official copies of a common parts title will always generate a copy of the register and title plan or certificate of inspection in form CI (certificate CI), even if a copy of the register alone, or the title plan/certificate CI alone, has been requested. Where you are applying for a copy of the register and title plan or certificate CI of the common parts title, a fee is payable as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

The usual fees for official copies apply for all other applications against commonhold titles in the normal way.

An application for official copies of a unit title or a common parts title must be made in form OC1 and a separate application must be lodged for each title.

If you do not know the title number and you are lodging the application:

• by post/DX write ‘please supply title number’ in panel 2 and the description of the unit in panel 3
• using one of the electronic delivery methods, use the ‘Official Copy – Title Unknown’ menu option
• using your Business e-services account, you can check using MapSearch

If official copies of the commonhold community statement or articles of association are required, you must make an application in form OC2.

If you require official copies of previous versions of the commonhold community statement or articles of association you must make an application, by post or DX to the appropriate HM Land Registry office, in form OC2. You must enter full details in the ‘Documents which are not referred to in the register’ section of panel 7.

A set of official copies will be issued to the applicant when a commonhold application for registration without unit-holders is completed. This set will comprise official copies of the register and title plan for each unit in the development and an equivalent number of official copies of the common parts title plus one additional set of the common parts title. The applicant can then issue these to prospective purchasers of the units.

Practice guide 11: inspection and applications for official copies contains further guidance and information with regard to applying for official copies.

7.3 Official searches

There are no special arrangements for making an official search of a commonhold unit or common parts registered title. Lodge the application as you would for any official search. Normal fees apply.

Practice guide 12: official searches explains how to lodge an official search application.

8. Stamp duty land tax (SDLT)

Most transactions under the Commonhold and Leasehold Reform Act 2002 are land transactions and therefore potentially liable to the payment of stamp duty land tax. If consideration has been paid as part of the transaction, above the current exemption threshold, a Land Transaction Return certificate must be lodged.

8.1 Application for registration of commonhold

An application under section 2 of the Commonhold and Leasehold Reform Act 2002 without unit-holders is not a land transaction; SDLT evidence is therefore not required.

An application under section 2 of the Commonhold and Leasehold Reform Act 2002 with unit-holders is a land transaction. If consideration has been paid in return for consent this is not chargeable consideration and SDLT evidence will not be required. If no consideration at all has been paid, SDLT evidence is also not required.

An application under section 9 of the Commonhold and Leasehold Reform Act 2002, when the leases are extinguished and the unit-holders are registered as proprietors of the units, is not an exchange. The unit is being “acquired” in return for the consent having been given, not in exchange for the lease being extinguished. SDLT evidence is therefore not required.

8.2 Application to cease to be commonhold during the transitional period

An application under section 8(4) of the Commonhold and Leasehold Reform Act 2002 where land ceases to be registered as a commonhold during the transitional period is not a land transaction. SDLT evidence is therefore not required.

8.3 Application to register the vesting of common parts in the commonhold association at the end of the transitional period

The vesting of the common parts in the commonhold association is a land transaction, as it is an acquisition of a chargeable interest by operation of law. Normally there will be no chargeable consideration for this type of land transaction. If, rarely, there is a chargeable consideration, a Land Transaction Return certificate is required if the chargeable consideration is above the SDLT threshold.

8.4 Application to register land within a commonhold

When land is transferred within a commonhold, meaning when land is transferred from one unit to another or from the common parts to a unit, these are normal land transactions. If valuable consideration is paid, a Land Transaction Return certificate is required unless the consideration, together with any consideration for any linked transaction, is less than £40,000, in which case SDLT evidence is not required. If no consideration is paid, SDLT evidence is not required.

8.5 Application to add land to a commonhold

When the land being added has been bought from third parties, these are normal land transactions. If valuable consideration is paid, a Land Transaction Return certificate is required unless the consideration, together with any consideration for any linked transaction, is less than £40,000, in which case SDLT evidence is not required. If no consideration is paid, SDLT evidence is also not required.

8.6 Application to register a successor commonhold association

A Land Transaction Return certificate must be lodged if consideration has been paid as part of the transaction, above the current exemption threshold.

8.7 Application to amend the commonhold community statement and/or alter the articles of association

An application to register the amended commonhold community statement is not classed as a land transaction and, therefore, SDLT evidence is not required.

An alteration to the articles of association is not a land transaction.

However, under section 30(4) of the Commonhold and Leasehold Reform Act 2002, where there is a redefinition of the extent of the common parts by the addition of land which was formerly part of a unit, and the land is vested in the common parts by statute, the amendment of the commonhold community statement will be the land transaction. If valuable consideration is paid, a Land Transaction Return certificate is required unless the consideration, together with any consideration for any linked transaction, is less than £40,000, in which case SDLT evidence is not required. If consideration has not been paid, SDLT evidence is not required.

8.8 Surrender of developer rights

As this transaction is a unilateral action by the developer and no other party is involved, SDLT evidence will not be required.

8.9 Termination of a commonhold

8.9.1 Voluntary winding up

The voluntary winding up of a commonhold association is not a land transaction. Therefore SDLT evidence is not required when an application to terminate a commonhold registration under section 49 of the Commonhold and Leasehold Reform Act 2002 is made.

8.9.2 Winding up by the court without a succession order

The winding up of a commonhold association is not a land transaction. Therefore SDLT evidence is not required when an application to terminate a commonhold registration under section 54 of the Commonhold and Leasehold Reform Act 2002 is made.

8.9.3 Winding up by the court with a succession order

The registration of a successor commonhold association is a land transaction. If consideration is paid, a Land Transaction Return certificate is required if the chargeable consideration is above the SDLT threshold (ie £125,000 in respect of residential properties and £150,000 for non-residential or mixed properties). If the chargeable consideration is below this amount, SDLT evidence is not required.

8.9.4 Termination by court order

The termination of a commonhold by court order is not a land transaction. Therefore SDLT evidence is not required when an application to terminate a commonhold registration under section 55 of the Commonhold and Leasehold Reform Act 2002 is made.

9. Fees: generally

The fees payable for commonhold applications are as prescribed by the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

10. Applications affecting commonhold registrations

The usual HM Land Registry transactions, subject to compliance with any restriction, can affect common parts and unit titles. The normal land registration procedure and fees apply to these applications. For example, because the common parts are registered under one title and each individual unit under a separate title all sales of the units are transfers of whole and should be lodged on form TR1 with the relevant fee payable under the current Land Registration Fee Order, see HM Land Registry: Registration Services fees.

The following gives details of special factors affecting some commonhold applications.

10.1 Applications received against the commonhold before the last unit is sold

As the developer retains an interest in the commonhold until the last unit is sold, any application against one or more of the titles still in the ownership of the developer (and to which the developer is a party) will be treated by HM Land Registry as if the application affects one title only.

If the dealing is for value, scale 1 fees apply based on the value of the transaction. Fees for other applications: scale 2 or Schedule 3 of the current Land Registration Fee Order apply.

10.2 Transfer by the developer

A developer may wish to transfer the commonhold to another developer during the transitional period. This does not signify the end of the transitional period if all the units are transferred, as no sale of the first unit is taking place.

The fee is assessed under either scale 1 if the transaction is for value or scale 2 of the current Land Registration Fee Order on the value of the transaction or the value of the registered estate.

10.3 End of transitional period

Upon the sale of the first unit in a new development the transitional period comes to an end at which time the common parts title vests in the commonhold association and entries are deleted from all unit titles.

No fee is payable in respect of the vesting of the common parts or the entries deleted from the registers when the transitional period comes to an end.

11. Appendix A: example of a residential commonhold community statement plan

12. Appendix B: providing a statement of truth

A statement of truth is a method of providing evidence in support of an application. On or after 10 November 2008, as a result of changes made by the Commonhold (Land Registration) (Amendment) Rules 2008, it must accompany applications in form CM1, form CM2 and form CM4 instead of a statutory declaration.

Its adoption by HM Land Registry follows the precedent set by the civil courts in accepting a statement of truth as evidence in place of an affidavit or statutory declaration.

(i) Requirements

For land registration purposes, a statement of truth is defined as follows.

• It is made by an individual in writing
• It must be signed by the person who makes it (unless they cannot sign – see (iii) below)
• It need not be sworn or witnessed
• It must contain a declaration of truth in the following form: ‘I believe that the facts and matters contained in this statement are true’
• If a conveyancer makes the statement or signs it on someone’s behalf, the conveyancer must sign in their own name and state their capacity – see (iv) below

(ii) Statement of truth signed by an individual who is unable to read

Where a statement of truth is to be signed by an individual who is unable to read, it must:

• be signed in the presence of a conveyancer, and
• contain a certificate made and signed by that conveyancer in the following form:

‘I [name and address of conveyancer] certify that I have read over the contents of this statement of truth and explained the nature and effect of any documents referred to in it and the consequences of making a false declaration to the person making this statement who signed it or made [his] or [her] mark in my presence having first (a) appeared to me to understand the statement (b) approved its content as accurate and (c) appeared to me to understand the declaration of truth and the consequences of making a false declaration.’

(iii) Statement of truth made by an individual who is unable to sign it

Where a statement of truth is to be made by an individual who is unable to sign it, it must:

• state that individual’s full name
• be signed by a conveyancer at the direction and on behalf of that individual, and
• contain a certificate made and signed by that conveyancer in the following form:

‘I [name and address of conveyancer] certify that [the person making this statement of truth has read it in my presence, approved its content as accurate and directed me to sign it on [his] or [her] behalf] or [I have read over the contents of this statement of truth and explained the nature and effect of any documents referred to in it and the consequences of making a false declaration to the person making this statement who directed me to sign it on [his] or [her] behalf] having first (a) appeared to me to understand the statement (b) approved its content as accurate and (c) appeared to me to understand the declaration of truth and the consequences of making a false declaration.’

(iv) Signature by a conveyancer

Where a statement of truth is made by a conveyancer, or a conveyancer makes and signs a certificate on behalf of someone who has made a statement but is unable to read or sign it:

• the conveyancer must sign in their own name and not that of their firm or employer, and
• the conveyancer must state the capacity in which they sign and where appropriate the name of their firm or employer

13. Things to remember

Always make sure you have:

• enclosed all the correct documents
• used and signed the correct application form
• enclosed the correct fee (see HM Land Registry: Registration Services fees)
• the plans comply with The commonhold community statement plan
• lodged all the necessary consents
• also lodged an application to register the amended commonhold community statement, if your application is to register a change in extent of a unit or the common parts, you also lodged an application to register the amended commonhold community statement
• checked clerical details in all forms, deeds and documents and habe paid particular attention to all dates, property descriptions, title numbers and full names of parties, especially where they appear in more than one deed

We only provide factual information and impartial advice about our procedures. Read more about the advice we give.