I am a freeholder
I have been served a section 42 notice
Get your valuation quote below
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?
- Instruct a solicitor who will check the validity of the notice and request 10% of the proposed premium up front
- Instruct a surveyor who will carry out a valuation on your behalf. Your solicitor will collect these fees on completion of the lease extension
- Respond with a Section 21 notice proposing a counter offer to the premium
- Instruct a surveyor to negotiate a fair and reasonable premium. Note that the freeholder is responsible to negotiating fees going forwards
- 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this is the latest an application to the First Tier Tribunal can be made, otherwise the Section 42 notice is deemed withdrawn
- Solicitors agree terms of new lease
- Upon agreement of the terms, there is 4 months to complete the process