What is a Section 42 Notice?
In the statutory lease extension process under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993), the Section 42 notice (often called a "tenant’s notice") is the official document a leaseholder serves to start the formal lease extension process. It legally obliges the landlord to grant an additional 90 years on the lease and reduce ground rent to zero, provided the leaseholder qualifies.
Once this notice is served, the landlord is required by law to respond with a Section 45 counter-notice within the deadline. This deadline has to be at least 2 months from service of the notice on all of the relevant parties.
What’s in a Section 42 Notice?
A valid Section 42 notice must include specific details to meet the legal requirements:
- The leaseholder’s full name and address
- Information about the lease, including the start date and original term
- The premium (price) the leaseholder is offering for the extension
- Any proposed changes to lease terms (normally none beyond what’s legally required)
- The name and address of the leaseholder’s representative
- A deadline by which the landlord must respond (no less than two months)
This notice must be carefully drafted. If any part is missing or incorrect, the landlord can challenge its validity. This can drastically weaken their neogitating position or even force the leaseholder to wait 12 months before serving another notice.
Triggering Your Legal Rights
Serving a valid Section 42 notice is how a leaseholder activates their statutory right to a lease extension for a flat.
Once served:
- The landlord must respond within the stated timeframe.
- The leaseholder’s position is legally protected—even if the lease drops below 80 years after service.
- The valuation date for the premium is fixed as the date the notice is served.
This gives leaseholders a critical advantage, especially when the lease is approaching the 80-year mark (where costs drastically rise due to marriage value).
Making an Offer
As part of the notice, leaseholders must propose a premium—the amount they are willing to pay for the extension. This figure should be realistic again as if it is not a reasonable figure the notice could be deemed invalid. So it is vital to get advice from a valuer which experience in leasehold enfranchisement.
Once this offer is made the landlord can request the leaseholder to pa a 10% deposit based on the premium offered in the Section 42 notice (or £250, whichever is higher).
Important Deadlines
Timelines are a crucial part of the statutory lease extension process:
- Landlord’s response: The freeholder must respond with a Section 45 notice by the deadline stated in the Section 42 notice. If they miss this, the leaseholder can apply to court to enforce the terms they originally proposed if the landlord is contesting this.
- Negotiation period: Once the counter-notice is served, both parties have up to 6 months to agree terms. If no agreement is reached, it is up to the leaseholder to apply to tribunal before the deadline expires.
- 12-month lockout: If the leaseholder withdraws the notice, or it’s deemed invalid or rejected, they cannot serve another Section 42 notice for 12 months.
Risks and Pitfalls
Serving a Section 42 notice gives leaseholders strong legal protection, but there are several common pitfalls:
- Errors in the notice: Small mistakes can invalidate the entire process.
- Delaying too long: Every day that passes the lease extension gets more expensive – especially if you are close to dropping below the 80 year mark.
- Failure to act: Once served, the leaseholder must stay on top of the legal timetable or risk losing their position (and having to wait a year and pay the landlord's costs).
- Cost obligations: Leaseholders are usually liable for the landlord’s reasonable legal and valuation costs, even if they later withdraw.
Why Is It Called a “Section 42 Notice”?
The name comes directly from Section 42 of the 1993 Act, which sets out the leaseholder’s right to request a lease extension and the legal form that request must take. Just as the landlord’s reply is known as a Section 45 notice, the leaseholder’s initial request is known as a Section 42 notice.
