Commonhold Ownership
Intelligent Living
pad55 is convinced that when you buy a new home you would prefer to own rather than lease it. Not least, because your home represents an investment that you wish to see increase in value over time.
Thus, pad55 provides a form of freehold ownership that offers owners all the benefits of freehold rights within a structure that also ensures shared management rights, responsibilities and standardisation of documents, ie. owners can co-exist in close proximity with mutual benefit and respect for each other.
This ownership structure is called commonhold and is now fully recognised in the UK and accepted by the majority of all UK mortgage lenders.
Take a look – the structure is very simple...
pad55 Owners – Unit Holders
As a pad55 owner, or unit holder, you own and have responsibility for your own pad* and car parking space, as designated through a single title number registered at HM land Registry.
All unit holders automatically become members of the Commonhold Association.
* defined as excluding the structure, exterior, roof, or any party walls of the building of which it is part (all pads) and also not including the beams and joists supporting the floor and ceiling (pads 1, 2, 3, 4, 5, 15 and 16 only). These separate elements are the responsibility of the Commonhold Association.
The Commonhold Association
The Commonhold Association owns everything else not owned by the unit holders, ie. the "common parts" registered under its own single title number (eg. the grounds, the swimming pool, the orangery, the guest suite etc), for the eternal and equal benefit of all its members.
In other words, you own your own pad and enjoy the rights and responsibility to an equal share of the communal buildings and gardens.
The Commonhold Association (a private Company limited by guarantee) is governed by the Commonhold Community Statement, which sets out, via covenants, the rights and obligations of its members to the Commonhold Association and to each other.
The power of the Commonhold Association is strictly regulated and defined within its Memorandum and Articles of Association, which, includes membership, meetings, appointments, powers of directors and voting rights.
The Commonhold Assessment
The Commonhold Assessment or ‘Service Charge’ is collected by the Property Manager on behalf of the Commonhold Association to discharge it’s financial obligations and liabilities (see the management cost breakdown on page 26). In addition to this, a Reserve Fund (or Sinking Fund) has been created for long-term unforeseen occurrences, initially capitalised by pad55 with £5,000 and then from further re-sales of the pads at 0.75% of applicable selling price.
For further advice about any aspect of commonhold you may find it useful to speak to Mary Chappell at Hague & Dixon, a Pickering based solicitor providing the buyers'
a legal package for pad55, Pickering.
Mary Chappell
Hague & Dixon Solicitors
Pickering
Tel: 01751 475 222
mary.chappell@hague-dixon.co.uk