According to information published by a UK law firm, more than 50% of property owners in the United Kingdom are completely and totally unaware of the rules, regulations, and laws governing leaseholds.
This puts each and every one of those leaseholders in a very sticky situation should any of the people that they are releasing to end up bringing them to court for any reason whatsoever.
Research law firm Bolt Burdon and Kemp has published this information recently, specifically hoping to help more UK leaseholders understand exactly what they are getting into when they decide to move forward with these types of agreements.
In the process of conducting their research (a research project that was conducted over three years), they discovered that more than 50% of all individuals that had a lease had absolutely no idea of the rules, regulations, and laws that governed leaseholds – and even worse, were completely unaware of the consequences of failing to extend leases when they had run out.
Trouble for UK leaseholders
The reason that this is such a serious issue is that the “80 year rule” is not fully understood by those that take advantage of lease opportunities in the United Kingdom, and that can have disastrous impacts on their financial future.
You see, once a property lease in the United Kingdom falls below 80 years, and extension ends up costing thousands and thousands of pounds – and once that 80 year mark has passed, there is absolutely nothing whatsoever that can be done to avoid paying for all of those extensions or losing the lease entirely.
Sure, the courts are going to say that the information provided by governmental lawyers clearly states that after a lease term drops below 80 years the cost of extending the lease is calculated individually – but there is (not surprisingly) a considerable amount of legalese and legal mumbo-jumbo thrown into these kinds of documents that make it very challenging for property owners and leaseholders to understand.
Speaking with a qualified solicitor about more information
As mentioned above, the research firm that conducted this study learned that over 50% of all property owners were completely unaware of the existence of the 80 year rule, and 36% of all property owners had no idea how long their lease really was.
With the overwhelming majority of apartments, flats, and properties throughout England and Wales on the leasehold program, a financial disaster is right around the corner if people aren’t completely aware of the situation that they are in and take the necessary steps to remedy the issues ASAP.
If you are going to get to the bottom of your specific situation, you’re going to want to work with the best solicitor and legal team you can find to help you. They’ll be able to dig up all of the information on your lease, allowing you to better understand your situation and where you are in regards to the 80 year rule, and advise you about how to best move forward.