Section 42 notices and using guidance figures responsibly

A tenant’s notice under section 42 of the Leasehold Reform, Housing and Urban Development Act 1993 starts the formal flat lease-extension process and fixes the relevant date. It must contain specified information, including the premium proposed.

LEASE explains that the figure must be a genuine opening offer and must not be unrealistically low. The notice is a legal document; professional drafting and valuation advice are strongly recommended.

You are free to use report information for any lawful purpose, including as one input when deciding what premium to propose. The report does not recommend, approve or confirm any notice figure as genuine, reasonable or suitable.

If you put a report figure into a notice, negotiation or proceeding, you do so entirely at your own responsibility and risk. Ask a solicitor and qualified valuer to consider the specific property and current law first.

A leaseholder using the statutory route can be responsible for specified reasonable costs incurred by the landlord, including certain legal and valuation costs. Those costs are distinct from the premium and from each party’s wider negotiation costs.

The usual First-tier Tribunal position is that each party bears its own costs, but the tribunal can order costs for unreasonable conduct. Courts and tribunals apply their own costs rules. A disputed or rejected estimate does not, by itself, mean a costs order automatically follows, but an ill-judged claim or unreasonable conduct can create financial and procedural risk.

Confirm eligibility and the competent landlord, establish the exact lease term, obtain a professional valuation, have a solicitor prepare or review the notice and ensure funding is available for the deposit and costs.