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Insert Alternative Choice to the Standard Residential Lease Agreement

Insert Alternative Choice to the Standard Residential Lease Agreement

Aug 6th, 2022

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

What is a section 42 notice?

Newly-created leases can be anything from 99 or 125 years to 999 years. A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below).

How do you respond to a section 42 notice?

You will have two months to respond with a counter-notice, in which you must either accept or reject the claim, the terms and the price offer. If you fail to reply in time, you could find yourself obliged to adhere to the terms set out by the tenant within their Section 42 notice.

How do I set up a lease option agreement?

A standard clause for inclusion in a lease where the tenant is to have an option to renew the lease from the end of the contractual term of the original lease. The option is not personal to the contracting tenant.

Can a freeholder refuse to extend a lease?

Your freeholder should be willing to agree to the extension. If they try to refuse or dont respond to your request, your solicitor can serve a Tenants Notice. This will force them into formal proceedings. Your landlord will have minimal grounds for refusing a lease.

What is a Section 42 notice on the landlord?

A Section 42 Notice is a formal request from a leaseholder to the freeholder or landlord (or both) and any other appropriate party to extend their lease on a property. This provides a leaseholder with an extension of 90 years on top of the remaining lease term and a ground rent reduced to zero.

How much is a section 42?

How much does it cost to serve a section 42 notice? DescriptionLegal and third party costsLease Extension Valuation500 to 1,000 INC VATS42 Notice Legal Fee500 to 900 INC VAT Further fees apply for the actual completion of the lease extension.Freeholders Legal and Valuers fee800 to 2,000 INC VAT4 more rows Jul 7, 2022

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