Section 42
Section 42 Notice
You have 8 weeks to respond.
If you have been served a section 42 notice, time is of the essence.
Our team is on hand to help guide you through the process, and can introduce you to specialist legal advisers too. We can manage the whole process for you.
As a freeholder, you are not responsible to pay for the fair and reasonable valuation and legal fees – please contact us to arrange a valuation and to find out more.
The Leasehold Reform Housing and Urban Development Act 1993 entitles qualifying leaseholders to a 90 year extension to their current lease at a peppercorn ground rent.
Note: Failure to do so would result in the leaseholder being granted a statutory lease extension at the price quoted in the notice.
The freeholder must respond with a counter offer by the date stated within the Section 42 notice.
The leaseholder is responsible for the freeholder’s fair and reasonable valuation and legal costs.
What is the process?
1
Instruct a solicitor who will check the validity of the notice and request 10% of the proposed premium up front
2
Instruct a surveyor who will carry out a valuation on your behalf. Your solicitor will collect these fees on completion of the lease extension
3
Respond with a Section 21 notice proposing a counter offer to the premium
4
Instruct a surveyor to negotiate a fair and reasonable premium. Note that the freeholder is responsible to negotiating fees going forwards
5
If the premium is not agreed before 6 months from the Section 42 notice, this is the latest an application to the First Tier Tribunal can be made, otherwise the Section 42 notice is deemed withdrawn
6
Solicitors agree terms of new lease
7
Upon agreement of the terms, there is 4 months to complete the process
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