What is a Section 45 Counter Notice?
After a leaseholder serves a Section 42 Notice under the Leasehold Reform, Housing and Urban Development Act 1993, the freeholder usually responds with a Section 45 Counter Notice.
The Counter Notice may:
- Admit your right to a lease extension
- Dispute your right to a lease extension
- Propose a different premium
- Propose different lease terms
In most cases the freeholder accepts the leaseholder's entitlement but disputes the premium.
When must a Counter Notice be served?
The deadline is specified in the Section 42 Notice.
Typically the freeholder must respond within at least two months.
Missing the deadline can have serious consequences for the freeholder.
What happens after the Counter Notice?
If both parties agree on the premium and terms, the lease extension proceeds.
For a step-by-step view of what happens next — including how long each phase typically takes — see our lease extension timeline guide.
If they disagree:
- Negotiations take place
- Surveyors exchange valuations
- The parties attempt settlement
- Either side may apply to the First-tier Tribunal if agreement cannot be reached
Many lease extension cases settle before reaching tribunal.
What if the freeholder wants more money?
This is extremely common.
The premium proposed in a Counter Notice is often substantially higher than the figure proposed by the leaseholder.
This does not necessarily mean the freeholder's figure is reasonable.
The final outcome depends on valuation evidence, negotiation and, where necessary, tribunal determination. Our quote benchmark compares the demanded premium against comparable tribunal outcomes.
How tribunal decisions help
Thousands of lease extension disputes have already been considered by the First-tier Tribunal.
Those decisions provide valuable evidence of how premiums have been determined in comparable cases.
LeaseIntel analyses recent tribunal outcomes to help leaseholders understand whether a proposed premium appears broadly consistent with real-world outcomes. See our methodology for how comparables are selected.
Frequently asked questions
Received a Counter Notice?
Compare the proposed premium against comparable tribunal outcomes and understand whether the figure appears reasonable.
Check My QuoteLeaseIntel provides information and benchmarking based on tribunal decisions. It does not provide legal advice or valuation advice.