Archie’s

The Section 42 Lease Extension Process

A statutory process guaranteeing your rights

The chart below is a simple summary the S42 extension process. Use the button to see how working with Archie's helps at different stages.  Visit the non-profit websites listed below to understand your rights.

Extending a lease under Section 42 of the 1993 Act can be an intimidating and confusing process. Here is how we would navigate this together.

  1. Instructing a Surveyor
    1–2 weeks
  2. Serving S.42 Notice
    UP TO 2 MONTHS*
  3. Negotiations
    1–6 MONTHS*
  4. Paying Premium & Costs

* Durations shown for the final stages reflect the statutory maximum time for these steps The process often take less time with a willing landlord.

  1. Instructing a Surveyor

    • You must instruct a surveyor to review your case.

    • In exchange for a fee, the surveyor provides:

      • an estimate of the premium;
      • a quote for their services; and,
      • their proposed opening offer to the freeholder.
    • The surveyor's initial fee is circa £2,000 for the services above, plus an incentive fee on completion equal to roughly 10% of the premium.
    Then 1–2 weeks for the surveyor to prepare the Section 42 notice

  2. Serving the Section 42 Notice

    • The surveyor serves a Section 42 notice on the freeholder.
    • By law, the freeholder has at most 2 months to respond.
    • The freeholder must either begin negotiations for an extension, or state that he believes he can rely on one of three legal reasons to refuse an extension.

    • The freeholder will respond by:

      • demanding a deposit equal to 10% of your opening offer.
      • submitting a counteroffer for what they think the premium should be.
      • Archie's will lend you the money to pay the deposit
    • It is crucial that a professional surveyor undertakes this step — improperly serving a Section 42 notice bars you from serving another for two years, delaying your plans and increasing costs by up to 8% depending on the years remaining on your lease.
    Then UP TO 2 MONTHS* for the freeholder to respond

  3. Freeholder Response & Negotiations

    • Negotiations begin with the landlord's response, and with payment of the deposit. If deposit is not paid within 14 days of freeholder's response, the s42 notice is deemed withdrawn.
    • Your surveyor begins negotiations with the landlord's surveyor.
    • At this stage you will know with certainty the minimum and maximum your premium may be — the minimum is your opening offer, the maximum is the counteroffer.
    • If no premium can be agreed, the matter goes to the Land Tribunal. Very few cases go down this route: the additional cost almost always outweighs the potential benefit to either party. That risk is further reduced when dealing with one of the large estates rather than an individual freeholder.
    Then 1–6 MONTHS* to agree the premium

  4. Paying the Premium and Costs

    • The parties agree the premium. You then pay:

      • the premium to the landlord.
      • legal costs to your solicitor.
      • legal costs for the landlord's solicitor.
      • stamp duty to HMRC on the new years added to the lease.
    • The law caps these negotiations at 6 months. The entire process — from serving the Section 42 notice to completion of the extension — is capped at around 8 months.

Costs, considered

We fund the costs; you safeguard the future.

Professional fees — solicitor and surveyor, and the freeholder’s reasonable costs — need not stand in the way. Archie’s advances the money to instruct the right people, with the balance settled on completion.

We explain the arrangement in plain terms before you commit, and there is no cost to open an account or receive our initial review.

Questions

Common enquiries.

The questions we hear most often, answered plainly.

Further reading

Official and independent guidance.

We encourage every member to read widely before proceeding. These sources are free, impartial and authoritative.

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