What to Do If Your Freeholder Refuses a Lease Extension

Can a Freeholder Refuse to Grant a Lease Extension?

Under the Leasehold Reform, Housing and Urban Development Act 1993 (as amended), a qualifying leaseholder has a statutory **right** to extend their lease. The freeholder cannot simply refuse. However, "refusing" comes in several forms, and knowing how each is handled keeps you in control.

Scenario 1 — The Freeholder Does Not Respond to the Section 42 Notice

The freeholder has **two months** from service of your Section 42 notice to serve a counter-notice. If they fail to do so, you may apply to the County Court for an order deeming the extension to be granted on the terms you proposed in your notice. This is a significant remedy — it means your proposed premium (however low) could be accepted by default.

If this occurs, instruct your solicitor to file a court application promptly. The court will grant the order if the notice was validly served and the freeholder has not responded.

Scenario 2 — The Freeholder Serves a Counter-Notice but Refuses to Negotiate

If the freeholder serves a counter-notice proposing a very high premium or unacceptable terms and then refuses to engage in sensible negotiation, you can apply to the **First-tier Tribunal (Property Chamber)** to determine the premium and terms. The application must be made within six months of the counter-notice (or such extended period as the parties agree).

The tribunal will hear evidence from both parties' surveyors and issue a binding determination. Tribunal decisions are a matter of public record and shape future valuations across the sector.

Scenario 3 — The Freeholder Cannot Be Located

If the registered freeholder is an offshore company or has disappeared, you can apply to the County Court for an order vesting the new lease in you without the freeholder's participation. The court will hold the purchase price in trust for the freeholder should they reappear.

Scenario 4 — The Freeholder Claims You Are Not a Qualifying Tenant

The freeholder's counter-notice may include a challenge to your eligibility under the Act. This is most commonly raised where there is doubt about the original grant of the lease or the nature of the tenancy. If this occurs, the First-tier Tribunal can also determine eligibility disputes.

The LEASE Advisory Service

LEASE (Leasehold Advisory Service) is a government-funded independent advisory service that provides free guidance to residential leaseholders and freeholders on their legal rights. It offers:

• Free telephone and email advice
• Guidance notes covering all aspects of the 1993 Act process
• A mediation scheme as an alternative to tribunal
• A directory of ALEP-accredited solicitors and surveyors

LEASE can be particularly valuable if you are in the early stages of a dispute and want to understand your options before incurring significant professional fees.

Practical Steps If You Encounter Resistance

1. Ensure your Section 42 notice was correctly served — an invalid notice can be challenged

2. Keep all correspondence in writing

3. Set firm but reasonable deadlines in negotiations and document when they are missed

4. Contact LEASE for free guidance

5. Apply to the First-tier Tribunal if no agreement is reached within six months of the counter-notice

Estimate Your Premium Before You Begin

Use our [Lease Extension Calculator](/lease-extension-calculator) to establish a reasonable premium range before entering negotiations. If the freeholder's demand is significantly above the calculated range, that is the starting point for a tribunal case.