Section 21: Part-unit: interests, Commonhold and Leasehold Reform Act 2002

It shall not be possible to create an interest in part only of a commonhold unit.

But subsection (1) shall not prevent—

the creation of a term of years absolute in part only of a residential commonhold unit where the term satisfies prescribed conditions,

the creation of a term of years absolute in part only of a non-residential commonhold unit, or

the transfer of the freehold estate in part only of a commonhold unit where the commonhold association consents in writing to the transfer.

An instrument or agreement shall be of no effect to the extent that it purports to create an interest in contravention of subsection (1).

Subsection (5) applies where—

land becomes commonhold land or is added to a commonhold unit, and

immediately before that event there is an interest in the land which could not be created after that event by reason of subsection (1).

The interest shall be extinguished by virtue of this subsection to the extent that it could not be created by reason of subsection (1).

Section 17(2) and (4) shall apply (with any necessary modifications) in relation to subsection (2)(a) and (b) above.

Where part only of a unit is held under a lease, regulations may modify the application of a provision which—

is made by or by virtue of this Part, and

applies to a unit-holder or a tenant or both.

Section 20(4) shall apply in relation to subsection (2)(c) above.

Where the freehold interest in part only of a commonhold unit is transferred, the part transferred—

becomes a new commonhold unit by virtue of this subsection, or

in a case where the request for consent under subsection (2)(c) states that this paragraph is to apply, becomes part of a commonhold unit specified in the request.

Regulations may make provision, or may require a commonhold community statement to make provision, about—

registration of units created by virtue of subsection (9);

the adaptation of provision made by or by virtue of this Part or by or by virtue of a commonhold community statement to a case where units are created or modified by virtue of subsection (9).

Section 21: Part-unit: interests

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