What is a Section 42?
A Section 42 Notice is an important legal document which your lease extension claim is based upon; once it is served, it starts a timetable for progression and obligations on you to pay the landlord’s costs. It must be submitted correctly and without any inaccuracies.
How much does it cost to extend a leasehold UK?
How Much Does it Cost to Extend a Lease? For a flat with 80 years left on the lease and expected to be worth £400,000 with a lease extension complete, and ground rent of £100 a year, a lease extension will cost from about £7,000 to £10,000 plus costs mentioned below.
When should I extend my lease?
In general is best to extend the lease before it reaches 80 years or below because some lenders require a certain number of years before they are prepared to lend. When a lease drops below 80 years the premium to extend the lease increases because marriage value becomes payable.
Can I extend my lease?
To begin the process of lease extension, you need to serve notice on your landlord. You’ll be required to have certain information in the leaseholder’s notice. In the notice, you’ll need to outline the premium you intend to pay for the lease extension and any changes you propose for the lease agreement.
How long does a Section 42 take?
After the landlord has received the Initial Notice (section 42) they have 21 days to request evidence of the leaseholders right to a formal lease extension. After the landlord has received the Initial Notice (section 42) they have 2 months from the date of the notice to serve their Section 45 – Counter-notice.
How long does the freeholder have to respond to a section 42 notice?
2 months
Once the Section 42 Notice has been served, the freeholder has 2 months in which to respond by serving upon you a Counter Notice. The Counter Notice will either accept or reject your claim.
Can a freeholder refuse to extend a lease?
If you decide to try to negotiate a lease extension, there are no rules and your landlord could refuse to extend your lease, or set whatever terms they like.
Do I need a solicitor to extend my lease?
If you want to extend the lease on a leasehold property, you will need to come to an agreement with the freeholder about this. You will need a solicitor to handle the legal process for you and help you negotiate the price, if needed. The first step is to inform the freeholder that you want to extend the lease.
Can a landlord refuse to extend a lease?
What can I do if my landlord won’t renew my lease?
If the lease is not being renewed due to renovation, you may be able discuss a new lease with your landlord once the property has been renovated. If you find yourself in a position where you must vacate the property, start hunting for a new place as soon as possible, and begin packing your things as quickly as you can.
Can a Section 42 be refused?
Once the Section 42 Notice has been served, the freeholder has 2 months in which to respond by serving upon you a Counter Notice. The Counter Notice will either accept or reject your claim. It will also state whether or not the freeholder is willing to accept your offer for the lease premium.
How long does a landlord have to respond to a section 42 notice?
Leaseholders must respond to this request within 21 days. Landlord must serve a Counter-Notice by the date specified in the notice.