Section 42 Notice - What You Need to Know

A Section 42 Notice is the formal notice which, when it's served on your landlord/freeholder, triggers off the official statutory lease extension process (click on the link to learn more about this).

When you complete this process successfully, you get 90 more years on your lease and a 'peppercorn rent' (no further ground rent to pay) so your lease greatly increases in value.

Don't serve a section 42 notice without a RICS valuation

Unless the freeholder has already had the lease premium valued, then you should never serve a section 42 notice using your own estimate of what the premium is worth; especially if you are just using online calculators. If you do it is most likely that the freeholder will reject your offer in their counter notice causing you delays whilst the freeholder or you gets a RICS valuation (plus it gets you off on the wrong foot negotiating in the blind and could annoy the freeholder).

Click on the following link to learn more about lease extension valuations.

Serving a Section 42 Notice correctly is critical!

A conveyancing solicitor experienced in lease extensions is fully aware that a Section 42 Notice served on a landlord/freeholder must be complete and with no inaccuracies. If your landlord finds faults in the notice, they can apply to court to have it dismissed, which means not only that your application is stopped but also that you cannot make another application for 12 months.

The Tenant's Notice is a clear milestone in the lease extension process also because all matters of valuation and compensation etc. are calculated from the date it is served.

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Prefer to call to discuss? No problem we are here on 0333 344 3234 (Mon-Fri 8-8 or Sat 11-1)

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What's in a Section 42 Notice?

The notice's sections are dictated according to the rules set down in the Leasehold Reform Housing and Urban Development Act 1993 (as amended). They include:Section 42 Notice - Lease Extension

  • Details of your landlord/freeholder, any intermediary landlords and their address/es.
  • The correct address of your flat
  • Particulars of the relevant lease - NB There must be at least 21 years left on the term and in most situations, you have to have owned it for at least 2 years; there are other criteria as well
  • What you propose to pay the landlord for granting you the extension (called the lease lease extension premium, click on the link to learn more about this)
  • Any other amounts that you may have to pay (this normally concerns any intermediate leasehold interests and/or what is termed 'compensation', your solicitor can advise you further on this)
  • The terms you propose for the new lease (central to this is the 90 year extension and the peppercorn ground rent but you can propose other conditions)
  • Details of anyone you have appointed to act for you regarding the claim
  • The address to which you landlord should send their Counter-Notice (normally your solicitor's address)
  • The date your landlord has to respond to the notice by (has to be at least 2 months after and not exceeding 6 months)
  • Details of who else copies of the notice have been given to (intermediate landlords etc)

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What happens after the section 42 notice is served?

The landlord has to serve their Counter-Notice by the date specified in point 9 above otherwise you can apply for a Vesting Order.

Assuming they do serve this notice, you can reasonably expect that if you've hired the right professionals, the notice will normally agree to your claim and you can then look to pay the landlord's premium, their compensation and for the final conveyancing required for the process to complete.

Do you pay money to the freeholder when you serve the notice?

  • Once your solicitor has served the notice, you are liable to pay your landlord's 'reasonable costs', which normally include what they have to pay for their own leasehold valuation and their legal representation; and
  • At any point after your solicitor has served the Section 42 Notice, your landlord can require you to pay a deposit of 10% of the full premium price you have proposed or £250, whichever is the greater figure.

If your landlord does not agree with your claim, they must say why in their Counter-Notice and then, at least 2 months after but not exceeding 6 months, either you or they have the right to take the matter to the Leasehold Valuation Tribunal. You have to pay a small sum to access this court but from this point, your landlord must pay for their own costs entirely, which is often the reason they'll choose to settle without taking this option.

* Specialist Lease Extension Solicitors - We provide the complete Lease Extension Service
Prefer to call to discuss? No problem we are here on 0333 344 3234 (Mon-Fri 8-8 or Sat 11-1)

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