Step 1 – Initial Advice and Valuation

Before serving a formal notice, you should obtain a professional statutory lease extension valuation.
This valuation:

• Calculates the likely lease extension premium
• Advises on a realistic opening offer
• Considers negotiation strategy
• Reviews lease terms and ground rent

This stage is critical. The figure inserted into the Section 42 Notice is not random it sets the tone for negotiations.

Step 2 – Instruct a Solicitor

A solicitor experienced in leasehold reform will:

• Review your title
• Confirm eligibility
• Draft and serve the Section 42 Notice on the freeholder

You must be the registered proprietor before serving notice. The two-year ownership requirement no longer applies.

Step 3 – Serving the Section 42 Notice

The Section 42 Notice formally triggers your legal right to:

• Add 90 years to your lease
• Reduce ground rent to a peppercorn

When the notice is served:

• You become responsible for the freeholder’s reasonable legal and valuation costs
• A deposit becomes payable (10% of the premium proposed or £250, whichever is greater)

Deadlines now start running.

Step 4 – The Freeholder’s Counter Notice

The freeholder must respond with a Section 45 Counter Notice by the statutory deadline.
They will:

• Accept your right to extend (in most cases)
• Propose their own premium

This is where negotiations begin.

Step 5 – Negotiation

Surveyors negotiate the lease extension premium.
This involves technical discussion around:

• Long lease value
• Relativity
• Capitalisation rates
• Deferment rate
• Marriage value (if applicable)

Most cases settle by agreement between valuers.
Our role at this stage is to negotiate firmly but sensibly, protecting your position without escalating matters unnecessarily.

Step 6 – Tribunal (If Required)

If terms are not agreed within the statutory timeframe, either party can apply to the First-tier Tribunal (Property Chamber).
The Tribunal will determine:

• The premium
• Any disputed terms

Many cases settle before the hearing date, but preparation and evidence are crucial.

Step 7 – Completion of the New Lease

Once the premium is agreed or determined the matter is with the solicitors:

• The new lease is drafted
• The premium and costs are paid
• The extended lease is completed and registered

You now have an additional 90 years and no ground rent.