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"I'm not a conveyancer so my thinking may be simplistic but surely houses should be freehold and flats leasehold. With flats each leaseholder owns one share in the management company (which owns the freehold) and so has an interest and a say in the management of the building."

Why not the following simple answers.

1. As of the appointed day (e.g. 1 January 2018) all leasehold residential properties with more than (say) 30 years to run where there are no common parts convert automatically into freehold with a rent charge for the same amount as the current ground rent which will run for 12 years and then cease automatically.

2. As of the appointed day (e.g. 1 January 2018) all leasehold residential properties with more than (say) 30 years to run where there are common parts and where the freehold does not already belong to a management company owned by the residents, convert automatically into a statutorily created scheme of that nature. From the appointed day all ground rents and management charges go to the management company. The previous freeholder is required to render an account for the management of the development over the last 6 years down to the appointed date. If the account is in surplus, it must pay over the balance to the management company. If the account is in deficit, that will be charge on the new management company due at that date, and recoverable, without interest, up until the expiry of 6 years from the appointed day.

End of story. No finessing.