What is Commonhold, and how does it differ from leasehold?

Commonhold is a form of property ownership that provides a significant difference compared to leasehold arrangements. In a commonhold system, the individual owners of units (such as flats or apartments) collectively own the common parts of the property through a Commonhold Association. This structure means that there is no separate landlord, and the owners collectively manage and make decisions regarding the maintenance and management of the property. This contrasts with leasehold arrangements, where a landlord owns the land and property itself and the leaseholder merely has the right to use the property for a predetermined period.

The idea behind commonhold is to give flat owners equivalent rights as if they owned the freehold of their own properties, enhancing autonomy and responsibility. This community-based management encourages collective decision-making and can aid in resolving issues related to shared responsibilities and expenses more effectively.

Other options do not accurately represent the nature of commonhold; for instance, it is not a type of lease and does not involve a separate government scheme nor focus strictly on financial management without an association. Therefore, the essence of commonhold lies in the collective management structure that empowers individual owners without the need for a separate landlord, making the first answer the most accurate depiction of what commonhold is.