Lease Extension Deadlines & Timescales
1. Section 42 Notice (Tenant's Initial Notice):
What Happens: The tenant formally serves a notice on the landlord under Section 42 to initiate the lease extension process. This notice must include proposed terms (e.g., premium) and other required details. Learn more about the Section 42 Notice process.
Deadline for Response: The landlord must respond with a Counter-Notice under Section 45 before the deadline specified within the Section 42 Notice, a minimum of two months from receiving the tenant's notice must be given, usually two months and two weeks is given from the date of service of the Section 42 Notice.
2. Section 45 Counter-Notice (Landlord’s Response):
What Happens: The landlord’s Counter-Notice must confirm whether they:
- Accept the tenant’s right to a lease extension.
- Dispute the right to extend (stating reasons).
- Accept the right to extend but dispute the proposed terms, offering alternatives.
Deadline: As above, the Counter-Notice must be served before the date specified in the Section 42 Notice. If the landlord fails to respond within this time, the tenant can enforce the lease extension terms through the courts but must apply within 6 months of the date that the landlord should have served the Counter-Notice by. Read more about Section 45 Counter-Notice requirements.
3. Deposit Request:
What Happens: Once the landlord receives the Section 42 Notice, they can request a deposit from the tenant. The deposit is the lower of:
- 10% of the tenant’s proposed premium.
- £250.
Deadline for Deposit Payment: The tenant must pay the requested deposit within 14 days of the landlord’s request. See how deposits factor into lease valuations.
4. Access for Valuation Purposes under Section 44
After a tenant's notice (under Section 42) or a copy of it is served, the landlord (or any relevant landlord as defined in the Act) has the right to access the premises for valuation purposes.
- Access must occur at reasonable times.
- Reasonable notice must be given to the tenant or occupier. The 1993 Act is silent on what is regarded as reasonable, but Section 17 (which deals with Collective Enfranchisement) refers to 10 days - this should be a good guideline.
5. Application to Tribunal to Agree Terms (Where Terms Are Not Agreed):
Governed by Section 48(2) of LRHUDA 1993
What Happens: If the landlord disputes the tenant’s proposed terms in the Counter-Notice, and the parties fail to reach agreement, either party may apply to the tribunal to determine the terms.
Earliest Date to Apply: Applications cannot be made until two months after the Counter-Notice.
Deadline for Application: The application must be made before six months after the Counter-Notice. If neither party applies within this window, the lease extension process lapses.
6. Court Application to Enforce Completion (Where Terms Are Agreed or Determined):
What Happens: Once terms are agreed (either through negotiation or tribunal determination), the lease extension must be completed. If it is not completed within a reasonable time, either party may apply to the court to compel completion.
Earliest Date to Apply: Court applications cannot be made until two months after the terms are agreed or determined (referred to as the "appropriate period").
Deadline for Application: The application must be made within four months from the date of agreement or determination (as per Section 48(5) of LRHUDA 1993), which includes:
- A two-month "appropriate period" (Section 48(6) of LRHUDA 1993) during which no court application can be made.
- A subsequent two-month window for filing an application. For related topics, see statutory routes for lease extension.
7. If the Landlord Misses a Deadline:
Governed by Section 49(3) of LRHUDA 1993.
What Happens: If the landlord fails to serve a valid Counter-Notice within two months of receiving the Section 42 Notice, the tenant can enforce their proposed terms. This involves applying to the court for an order compelling the lease extension. More details at what happens if landlords fail deadlines.
Deadline for Application: The tenant must apply to the court within six months of the landlord's failure to comply.
Consequences of Missing Tribunal or Court Deadlines
If a leaseholder misses the deadline to apply to the tribunal (for determining terms) or the court (to compel completion), the consequences can be significant:
a. Section 42 Notice Lapses:
Failing to meet the application deadlines causes the Section 42 Notice to lapse, effectively ending the lease extension process for that notice. See what to do after receiving a Section 42 Notice.
b. Restriction on Serving a New Section 42 Notice:
Under Section 42(7) of the Leasehold Reform, Housing and Urban Development Act 1993, the leaseholder cannot serve a new Section 42 Notice for a period of 12 months from the date the original notice is treated as withdrawn.
c. Financial Implications:
Missing the deadline means the leaseholder will need to pay the legal and valuation costs for both the freeholder and their own advisors twice, as the process must be restarted. These costs can be substantial and significantly increase the expense of the lease extension.
d. Risk of a Higher Premium:
During the 12-month prohibition period:
- The lease term will continue to shorten, which typically increases the premium required for the extension.
- If property values rise during this time, the premium may increase even further.
To avoid these additional costs and delays, the leaseholder may wish to consider offering a higher premium to the freeholder to secure the lease extension without requiring tribunal or court intervention. Explore negotiation tips for premium agreements.