If you own a flat on a long lease, the law gives you strong rights under the Leasehold Reform, Housing and Urban Development Act 1993 (as amended). You may be able to:
Extend your lease by 90 years and reduce your ground rent to zero (a “peppercorn rent”), or
Join with other flat owners in your building to buy the freehold together (known as “collective enfranchisement”).
Both routes start by serving a formal legal notice on your landlord. But what if the landlord doesn’t reply, or you and your neighbours decide to switch from one option to the other? Let’s look at what happens.
Extending Your Lease – Section 42 Notice
If you’ve owned your flat for at least two years, you can serve what’s called a Section 42 Notice on your landlord. This notice says:
You want to extend your lease,
What price (premium) you’re offering, and
Other details required by law.
Once the landlord receives your notice, they have two months to reply with a Counter-Notice. Their reply might agree with your request, suggest a higher premium, or (in rare cases) claim you don’t qualify.
But here’s the key point: if the landlord does not reply within two months, the law is firmly on your side. You can apply to the court, and the court can order the lease to be extended on the exact terms you proposed in your notice. This means your suggested price could stand, simply because the landlord failed to act in time. It is always beneficial to ask your instructing solicitor to write to the landlord notifying them of their failure to serve a Counter-Notice before issuing court proceedings.
Buying the Freehold Together – Section 13 Notice
Separately, leaseholders in the building can act together to buy the freehold by serving a Section 13 Notice. To do this, at least half of the flats in the building must take part.
This gives leaseholders long-term control of their building, including setting service charges and granting themselves extended leases.
What If Both Routes Are Used?
Sometimes, a flat owner might serve a Section 42 Notice to extend their lease, and later the leaseholders in the building decide to buy the freehold together using a Section 13 Notice.
The law prevents both claims running at the same time. In this case, the lease extension (the Section 42 claim) is put into abeyance — in other words, it is paused — until the collective enfranchisement process is finished. Once the freehold purchase is completed or withdrawn, the lease extension can then move forward.
This rule exists to stop landlords being forced to deal with two sets of overlapping claims at once.
Key Takeaways for Leaseholders
Deadlines matter. If your landlord doesn’t reply to your lease extension notice within two months, you gain a huge advantage.
Think strategically. Extending your lease protects its value and makes it easier to sell or remortgage. But if your building is considering buying the freehold, it’s important to coordinate with your neighbours so the two processes don’t clash.
Get professional help. These notices must be carefully drafted and strict timetables apply. A solicitor and a specialist surveyor will guide you through the process and make sure you don’t lose your rights.
In summary: the 1993 Act is designed to protect leaseholders. Whether you’re looking to extend your lease or join forces with others to buy your freehold, the law gives you clear routes forward — and even gives you the upper hand if your landlord doesn’t play ball.
Katie Cohen, Partner, Keystone Law
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