What distinguishes commonhold from leasehold ownership?

Commonhold is characterized by the shared ownership of common areas, which is a fundamental aspect that distinguishes it from leasehold ownership. In a commonhold arrangement, each individual unit owner possesses their unit outright, and all owners share an interest in the common areas of the property, such as hallways, gardens, and recreational facilities. This structure empowers unit owners to collectively manage and maintain these shared spaces, contributing to cooperative living and shared responsibilities among residents.

On the other hand, leasehold ownership typically involves leasing a property for a specified term, with the leaseholder holding rights primarily to their individual unit but not to shared areas in the same manner as commonhold. The management and maintenance of common areas in leasehold structures are usually the responsibility of a freeholder, which can lead to differing levels of control and engagement by the unit owners. Thus, the concept of shared ownership in commonhold is pivotal to understanding its community-oriented nature and contrasts sharply with the more individualized rights characteristic of leasehold arrangements.