What characterizes the leasehold system in England and Wales?

The leasehold system in England and Wales is characterized by a tenure arrangement that allows individuals to own their flats or units outright while sharing ownership of common areas and managing them through external entities, often referred to as management companies. This system establishes a clear division between private ownership of residential units and collective responsibility for shared facilities, such as staircases, hallways, gardens, and other communal spaces.

This structure provides advantages, such as ensuring that common areas are maintained and managed properly, which can enhance property values and provide a structured solution for maintenance and management. Homeowners maintain control over their individual flats, while an external body can take responsibility for the complexities of managing commonly used areas and amenities.

In contrast, options that describe full ownership or joint ownership would not accurately reflect the distinct nature of leasehold tenure, as they imply complete ownership over both individual units and communal areas in a manner inconsistent with the typical arrangements seen in leasehold systems. Thus, the key characteristic of the leasehold system lies in the dual structure of private ownership of flats and collective management of shared spaces.