Section 42 Lease Extension Process
Are you looking to extend your lease under Section 42? Our step-by-step guide explains the process, deadlines, and how to negotiate with freeholders.
A Section 42 Notice is a formal document submitted by a leaseholder to the freeholder or landlord to request a lease extension under the Leasehold Reform, Housing, and Urban Development Act 1993.
The Section 42 Notice is the first step to extending your lease. If you have questions, call our lease solicitors on 0203 959 7755 for free initial advice.
Table of Contents
- What is a Section 42 Notice?
- What is the Section 42 lease extension process?
- How long does the Section 42 lease extension process take?
- What is the deadline for serving a counter-notice response to a Section 42 Notice?
- Should I hire a solicitor to serve the Section 42 Notice?
- How much do solicitors charge for a lease extension using Section 42 Notice?
- Contact lease extension solicitor
What is a Section 42 Notice?
A Section 42 Notice is a formal request submitted by a leaseholder to the freeholder or landlord (or both) to initiate the lease extension process.
To be eligible to extend your lease, you must be a "qualified leaseholder," which means you have owned the property for at least two years, and the original lease was for more than 21 years.
This grants the leaseholder an extension of 90 years in addition to the remaining lease term, with the ground rent reduced to zero.
It is governed by the Leasehold Reform, Housing, and Urban Development Act 1993 in England and Wales, which allows leaseholders to extend their leases.
What is the Section 42 lease extension process?
The Section 42 Notice process is a formal way for leaseholders in England and Wales to extend their lease. Here's a step-by-step guide:
Step 1: Check Eligibility
Make sure you can serve a Section 42 Notice:
- You must have owned the property for at least two years.
- The original lease term must exceed 21 years.
Step 2: Appoint a Surveyor for Valuation
Get a surveyor who knows about lease extensions to work out a fair premium. This premium will be the basis of your offer in the Section 42 Notice.
Step 3: Engage a Lease Solicitor
Our lease solicitors will draft the Section 42 Notice to initiate a lease extension under the Leasehold Reform, Housing, and Urban Development Act 1993.
Step 4: Serve the Section 42 Notice
Our lease solicitor in London will draft and serve the Section 42 Notice to the freeholder or their representative to start the lease extension process.
The Section 42 Notice will include:
- Details of the property and leaseholder.
- The proposed premium for the lease extension.
- A deadline for the freeholder to respond (minimum two months).
Step 5: Freeholder Responds (Section 45 Notice)
The freeholder must reply with a counter-notice (Section 45 Notice) within two months of getting the Section 42 Notice.
They can:
- Accept the proposed terms.
- Propose different terms.
Step 6: Negotiation Period
If the freeholder disputes the premium or other terms, both parties enter negotiations, which can continue for up to two months.
Step 7: Referral to Tribunal (if necessary)
If you can't agree, you can refer the issue to the First-tier Tribunal (Property Chamber). The tribunal will decide on a fair premium and solve any disputes.
Step 8: Complete the Lease Extension
The lease extension is finalised once you agree on terms or the tribunal decides. Both sides sign the new lease, and it's registered with the Land Registry.
How long does the Section 42 lease extension process take?
The lease extension process via a Section 42 Notice typically takes 4 to 12 months, though the timeline may vary based on the case's complexity.
The process involves several steps that can take months:
- Getting valuation advice.
- Serving a Section 42 Notice.
- Waiting for the freeholder’s counter-notice (Section 45), which must be issued within two months.
After the counter-notice, negotiations usually last two months. If no deal is made, the case might go to the Leasehold Valuation Tribunal. This could make the process take over a year.
What is the deadline for serving a counter-notice response to a Section 42 Notice?
The landlord or freeholder has a strict timeline and must serve the counter-notice (Section 45) within two months of receiving the Section 42 Notice.
If the landlord does not respond within the specified time, the leaseholder can apply to the First-Tier Tribunal to proceed with the lease extension under the proposed terms.
Should I hire a solicitor to serve the Section 42 Notice?
Yes, it is strongly recommended to hire a leased solicitor to draft and serve the Section 42 Notice to ensure accuracy and compliance with legal requirements.
If you have any questions about lease extension, don't hesitate to contact us today at 0203 959 7755 or through our online contact form.
The benefits of choosing Moeen & Co. Solicitors
- Top-quality advice from experienced lease extension solicitors.
- A proactive approach to finding cost-effective solutions for your business.
- A client-focused service tailored to your unique needs.
- Clear communication and transparency throughout the lease extension process.
- Expert guidance and support throughout the lease extension process.
- Our lease solicitors provide legal services on a fixed fee basis without blowing your budget and with no hidden costs.
- We are authorised and regulated by the Solicitors Regulation Authority (SRA), so you know you are in safe hands.
How much do solicitors charge for a lease extension using Section 42 Notice?
Our lease solicitors in London offer a fixed fee between £1,000 and £1,500 for legal services related to drafting the Section 42 Notice for lease extensions.
By choosing our fixed fee services, you can have the peace of mind that there will be no hidden costs or surprises. We believe in transparency and making the lease extension process as smooth as possible.
Contact lease extension solicitor
If you are looking for a solicitor to extend your lease using Section 42 Notice, please call us today at 0203 959 7755 or email us at info@moeenco.com.
There are several ways to contact our solicitors based in Hayes, London:
- Phone - Call us on 0203 959 7755
- Email us - info@moeenco.com
- Online - Fill in our online enquiry form
- Visit our office - Room 1, The Winning Box, 27-37 Station Road, Hayes UB3 4DX
We are located near Hayes and Harlington Station on Hayes High Street, in Hayes Town Centre.
Legal Disclaimer
The information provided is for general informational purposes only and should not be taken as legal advice. While we make every effort to ensure accuracy, the law may change, and the information may not reflect the most current legal developments. No warranty is given regarding the accuracy or completeness of the information, and we do not accept liability in such cases. We recommend consulting with a qualified lawyer at Moeen & Co. Solicitors before making any decisions based on the information provided on this website.