A Section 42 Notice is a formal request from a leaseholder to the freeholder or landlord (or both) and any other appropriate party to extend their lease on a property. This provides a leaseholder with an extension of 90 years on top of the remaining lease term and a ground rent reduced to zero.
With the guidance of a qualified valuer, your notice should include a premium or price for the procedure of the lease extension.
After the Section 42 Notice has been served, the landlord/freeholder have two months to respond with a Counter Notice. This will either accept or reject the claim and the price offer. If the freeholder refuses to accept the lease premium, there will be a further two months provided for negotiation.
If you decide you'd like to serve a Section 42, this must be complete with no inaccuracies. If faults are found, the freeholder can apply to a court to have it dismissed. Should this happen you are prevented from being able to apply again for another 12 months.
With the guidance of a qualified valuer, your notice should include a premium or price for the procedure of the lease extension.
After the Section 42 Notice has been served, the landlord/freeholder have two months to respond with a Counter Notice. This will either accept or reject the claim and the price offer. If the freeholder refuses to accept the lease premium, there will be a further two months provided for negotiation.
If you decide you'd like to serve a Section 42, this must be complete with no inaccuracies. If faults are found, the freeholder can apply to a court to have it dismissed. Should this happen you are prevented from being able to apply again for another 12 months.
Are you eligible to extend your lease?
When granted, the lease must have been for more than 21 years and you must have owned the property for at least two years.
You cannot apply for a lease extension if your landlord is a charitable housing trust or if it’s a business or commercial lease.
You cannot apply for a lease extension if your landlord is a charitable housing trust or if it’s a business or commercial lease.
Can a landlord or freeholder refuse to extend a lease?
If you qualify for a lease extension, the freeholder if unable to refuse. The owner may, however, dispute the premium offered.
Most leaseholders have the statutory lease extension procedure in place. Under the Leasehold Reform, Housing and Urban Development Act 1993 you will need to qualify to have the ability to extend. Qualification is usually ownership of the flat for the last 2 years.
If you’re a freeholder or landlord and you receive a Section 42 Notice, it’s vital you take action. If you ignore this or fail to reply to it, you may find yourself bound to the grant given by the leaseholder, which will take away the control you have for the premium that is paid.
For further information on Section 42 Notices and lease extension, please call our leasehold enfranchisement team on 0800 161 5767 or email us.
Most leaseholders have the statutory lease extension procedure in place. Under the Leasehold Reform, Housing and Urban Development Act 1993 you will need to qualify to have the ability to extend. Qualification is usually ownership of the flat for the last 2 years.
If you’re a freeholder or landlord and you receive a Section 42 Notice, it’s vital you take action. If you ignore this or fail to reply to it, you may find yourself bound to the grant given by the leaseholder, which will take away the control you have for the premium that is paid.
For further information on Section 42 Notices and lease extension, please call our leasehold enfranchisement team on 0800 161 5767 or email us.