What is a Section 42 Notice?
A Section 42 Notice is the formal document a leaseholder serves on their freeholder to trigger the statutory right to a lease extension under the Leasehold Reform, Housing and Urban Development Act 1993. It is sometimes called a "tenant's notice" or "initial notice."
Serving it does three important things:
It is worth being clear about what the notice is not. It is not an agreement to extend — it starts the formal negotiation. It does not fix the premium — that comes later. And it is not the same as an informal request to extend, which carries none of these protections.
Eligibility requirements
- You have owned the flat for at least two years
- The lease was originally granted for more than 21 years
- The property is a residential flat
A solicitor can confirm eligibility before the notice is prepared.
Statutory vs informal extension — which route is right?
Many leaseholders do not realise they have a choice. The two main routes to extending a lease are the statutory route (using a Section 42 Notice) and an informal negotiation directly with the freeholder.
| Informal route | Statutory (Section 42) | |
|---|---|---|
| Legal protections | None | Full statutory protections |
| Valuation date locked | No | Yes — date of notice |
| Freeholder can withdraw | Yes | No, once notice served |
| Freeholder response required | No | Yes — within two months |
| Ground rent in new lease | Negotiable | Reduced to zero |
| Term added | Negotiable | 90 years added |
| Right to tribunal | No | Yes |
| Typical timeline | Faster if amicable | 6–18 months |
The informal route can work well where the freeholder relationship is good and both parties want a quick, straightforward resolution. The statutory route provides more protection but requires a correctly served notice, professional advice and a more structured timeline.
Most leaseholders extending through a solicitor will use the statutory route. For leases approaching the 80-year threshold — where the valuation date matters enormously — the statutory route's ability to lock in that date is particularly valuable. See our lease extension cost guide for context on how these decisions affect the overall cost.
What must a Section 42 Notice contain?
A Section 42 Notice is not a free-form letter. It must contain specific information prescribed by the 1993 Act:
- The leaseholder's full name and address
- A description of the flat sufficient to identify it
- Details of the current lease — the parties, the date it was granted, and the unexpired term
- The premium the leaseholder is proposing to pay
- The name and address of the leaseholder's solicitor, who will receive the counter-notice
- A response date — giving the freeholder at least two months to serve their counter-notice
A note on the proposed premium: the leaseholder must include a premium they are willing to pay. This does not need to be the final agreed figure — it is a starting position for negotiation. However, it should be based on a genuine surveyor's assessment rather than an arbitrary low figure.
What happens after a Section 42 Notice is served?
This is the part of the process that most leaseholders want to understand before they serve.
| Stage | Who acts | When |
|---|---|---|
| Section 42 Notice served | Leaseholder | Day 0 — the valuation date |
| Freeholder acknowledges receipt | Freeholder | Usually within days |
| Counter-notice deadline | Freeholder | 2 months from service |
| Negotiation period | Both parties | Up to 6 months from counter-notice |
| Application to tribunal (if needed) | Either party | After negotiation period |
| Tribunal determination | Tribunal | Variable — often several months |
| Completion | Both parties | After price agreed or tribunal order |
The counter-notice — the key moment
The freeholder's response is a Section 45 counter-notice. It must admit the leaseholder's right to extend and state the freeholder's proposed premium. This is the first time you will see the figure the freeholder is asking for.
It is important to understand what this figure represents. The counter-notice premium is prepared by the freeholder's surveyor using the same statutory formula that your surveyor will use — but the formula involves valuation assumptions where reasonable professionals can disagree. The freeholder's surveyor will typically apply assumptions that produce a higher premium. The counter-notice is the freeholder's opening position, not a fixed or final price.
This is the point where tribunal evidence becomes directly useful. Knowing whether the counter-notice premium is within the range that comparable tribunals have determined — or materially above it — helps you and your surveyor decide how to respond.
The negotiation phase
After the counter-notice, there is typically a period of up to six months in which both parties' surveyors negotiate. Most cases settle during this phase without going to tribunal.
If no agreement is reached
Either party can apply to the First-tier Tribunal (Property Chamber) to determine the correct premium. The tribunal reviews evidence from both sides and issues a binding, published decision. Tribunal proceedings add time and cost, but the ability to apply gives leaseholders real leverage even in cases that settle before a hearing.
Received a counter-notice? Before negotiating or instructing a surveyor, see where the premium sits relative to comparable tribunal outcomes. LeaseIntel can benchmark it in under a minute.
Timing considerations and the 80-year threshold
The valuation date is the date the Section 42 Notice is served. This has a direct bearing on whether marriage value applies to your premium.
If your lease is above 80 years at the date of service, no marriage value is payable — it is legally zero. If the lease has fallen below 80 years by the date of service, marriage value applies and can add tens of thousands of pounds to the premium. The valuation date cannot be changed retrospectively.
| Scenario | Outcome |
|---|---|
| Lease at 82 years, notice served promptly | No marriage value. Valuation date locked in above threshold. |
| Lease at 82 years, notice delayed 3 months | Lease now at 81.75 years. Still above threshold. |
| Lease at 80.5 years, notice delayed 7 months | Lease now at 79.9 years. Marriage value applies. |
| Lease at 79 years, notice served | Marriage value already applies — cannot be avoided. |
If your lease is between 80 and 84 years remaining: timing is not a neutral consideration. Serving the Section 42 Notice promptly protects your valuation date. Every month of delay is a month closer to the threshold.
See our marriage value guide for a full explanation of how marriage value is calculated and what it means for your premium.
Two-year ownership requirement: you must have owned the flat for at least two years before serving a Section 42 Notice. This is a fixed eligibility condition. Buyers of flats with short leases who plan to extend should factor this waiting period into their planning.
Common mistakes to avoid
Serving a defective notice
The single most expensive mistake. A notice missing required information or incorrectly identifying the property can be invalidated. Always use a specialist solicitor.
Waiting too long
Particularly critical for leases approaching the 80-year threshold. Solicitor fees are insignificant compared to the marriage value that can be triggered by delay.
Not instructing a surveyor before serving
The notice must include a proposed premium based on a genuine valuation. An arbitrary figure can undermine your position in subsequent negotiations.
Accepting the counter-notice premium without question
The freeholder's figure is a starting position. Leaseholders who accept it without a surveyor's review — or without checking whether it falls within the range of comparable tribunal outcomes — can end up significantly overpaying.
Missing the negotiation deadline
There is a six-month window after the counter-notice. If neither party applies to tribunal within that window and no agreement has been reached, the notice may lapse and the process must begin again.
Confusing a statutory extension with a lease renewal
A statutory extension adds 90 years to the existing remaining term and reduces the ground rent to zero. It does not replace the existing lease with a new one from scratch.
Frequently asked questions
After the counter-notice
The Section 42 Notice is the start of the process. The counter-notice is when the process becomes financial.
Once you have the freeholder's figure, the most useful thing you can do is understand where it sits relative to what comparable tribunals have actually determined — not what another calculator estimates, but what independent panels decided when both sides' valuations were tested under scrutiny.
That knowledge helps you and your surveyor negotiate from an informed position, decide whether the gap between the figures justifies a tribunal application, and avoid either accepting a premium that is well above the tribunal range or prolonging a dispute where the freeholder's figure is in fact reasonable.
Is My Lease Extension Quote Too High?Independent · Not a valuation or legal advice · Tribunal outcomes, not formula estimates