Commonhold Mediation Package | How we can help you

You will no doubt have seen the article prepared by our Commercial Property specialists, ‘Commonhold Reform: A New Era for Flat Ownership in England and Wales?’ in relation to the upcoming changes to leasehold becoming commonhold.  If not, view the article HERE.

Commonhold as a form of property ownership is not a new concept in England and Wales. It was first introduced in 2002 under the Commonhold and Leasehold Reform Act 2002 though the number of commonhold properties has remained rare. 

The Government has proposed changes that will seek to increase the number of Commonhold properties in England and Wales. 

One of the proposed changes contained in the Government’s White Paper is for a more effective dispute resolution procedure for unit/flat owners, also known as “Commonholders”.  The proposed solution is: “The government will promote mediation and out of court approaches to resolving disagreements and the Commonhold Association will also be able to offer a view.”

We at Moore & Tibbits Dispute Resolution team can help with any disputes that may arise amongst the Commonholders, or as between the Commonholders and the Commonhold Association. 

Disputes could easily arise especially where there are several flats / units in one building with every commonholder having different ideas about the building. Potential disputes that could arise in relation to commonhold properties, include, but are not limited to:

• Disagreements concerning the annual budget for the building and the contributions to be paid by each commonholder;
• Decisions regarding the level of maintenance work that is required for the building;
• Differing opinions on what is considered ‘usual’ or ‘urgent’ repairs needed in the building;
• The appointment of contractors and tradespeople to be approved to carry out repairs and/or maintenance work;
• Obtaining additional funding to carry out urgent repairs on the building caused by weather or other damage .

In the proposed Commonhold legal structure, it will be necessary for all Commonholders within the building to agree on such issues and it is easy to see how and why disputes might occur. 

Our Dispute Resolution team at Moore & Tibbits can provide you with advice and support to deal with disputes that may arise for individual Commonholders and/or groups of Commonholders. 

Where we are not instructed to provide advice, Moore & Tibbits is able to offer Parties, its  Commonhold Mediation Package where our inhouse Mediator, Judith Owen, will assist in reaching a resolution to the dispute. Find out more about Judith and the Mediation services available HERE. 

In dealing with the mediation, Judith will offer Commonholders the option to select their preferred method as to how the mediation should be handled. We anticipate that the mediation could be carried out as follows:

a) Virtual mediation through video conferencing platforms such as Teams or Zoom.  

Moore & Tibbits is an avid supporter of the ‘Green Pledge’, which means that we will conduct mediations through online video conferencing platforms as often as possible, to reduce travel needs, thus doing our bit to lessen pollution, reduce travel time and costs.  It is also our preference to use electronic bundles, rather than paper bundles, as often as possible.

b) Judith will attend your property to hold a group mediation with all of the Commonholders in that building.  

c). Judith will be happy to attend any other ‘neutral ground’ venue that the parties may wish to use for mediation purposes

The cost of the mediation would be borne equally between all parties involved in the dispute and Judith’s fees and expenses will be required to be paid on account in advance. The overall cost of mediation will depend upon the complexities of the case and the number of participants in the mediation. 

The Dispute Resolution team has prepared the below estimates for you to consider: 

Number of commonholders    Fee estimate (plus) VAT
One to five unit owners            £3,000 - £5,000
Six to ten unit owners              £5,500 - £8,000
Eleven + unit owners               £8,500+

The benefit to Commonholders engaging in mediation is that it will allow the parties to attempt to resolve the dispute and maintain a good relationship with one another as neighbours, without the need for entering into protracted and costly litigation through the Court or Tribunal. 

The reform is scheduled to come into effect in tranches throughout  2025 however, at Moore & Tibbits we want to help you stay ahead of the curve and be prepared. 

If you would like further information regarding and civil and commercial mediation offering, please do not hesitate to contact Judith at JudithO@moore-tibbits.co.uk or by telephone on either 01926 491181 or 07415 421349