Will my section 42 notice valid after the new law comea into force?

Happyflat

I bought a new flat last summer. I was eager to extend my lease and have served section 42 notice out of sheer ignorance last year (the seller sold it with the notice so that I become eligible to extend the lease immediately). I now understand the new legislation, LAFRA 2024, became law and will come into force in the next year or so,  and with the law you will no longer have to pay for landlord's legal fees etc. 

The negotiation with the landlord was difficult and I was told my notice was deemed withdrawn as I missed the deadline. My solicitor says it will be very unlikely that the changes were to be backdated if these come into force - that means, I will still have to pay for the landlord's legal and surveyor's fees?  Is there any way I can cancel my notice, wait until the new law comes into force without losing anything?   Am I stuck with this notice unless I am willing to pay for the landlord's fees?

eddddy

Happyflat said:

The negotiation with the landlord was difficult and I was told my notice was deemed withdrawn as I missed the deadline. My solicitor says it will be very unlikely that the changes were to be backdated if these come into force - that means, I will still have to pay for the landlord's legal and surveyor's fees?  

Yes - if your notice is withdrawn (or deemed withdrawn), unfortunately you'll have to pay your landlord's legal and surveyor's fees to date.

Happyflat said:

Is there any way I can cancel my notice, wait until the new law comes into force without losing anything?  

The short answer is "No".

As I say, even if you had withdrawn your application (before it was deemed withdrawn), you would still have had to pay your landlord's legal and surveyor's fees.
 

Happyflat said:

I bought a new flat last summer. I was eager to extend my lease and have served section 42 notice out of sheer ignorance last year (the seller sold it with the notice so that I become eligible to extend the lease immediately). 

So under the current legislation, you will now have to meet 2 time constraints before you can apply again for a statutory lease extension...

• You have to have owned the flat for at least 2 years

• Having withdrawn an application, you have to wait 1 year before you can apply again

The new legislation is expected to be implemented in 2025 or 2026. Under the new legislation...

• You don't have to have owned the flat for 2 years

• I suspect the rule about waiting a year after withdrawing will remain - but I don't know for sure

What was your landlords attitude to your application? Did they seem keen to extend the lease (and get the cash)?

Even though your statutory lease extension application has been withdrawn, you can see if the landlord wants to proceed on an informal basis. (But the landlord is free to refuse, if they want to.)

Happyflat

Thank you.  I thought when the new law comes into force it will apply to my notice also, so I have suggested the landlord they pay the legal fees and a smaller premium than previously discussed and they say they won't consider informal negotiations.  

So could anyone confirm please -  even if the new law comes into force I will still have to pay for their fees and can only extend for 90 yeras beause I had served section 42 notice before it comes into force? 

eddddy

Happyflat said:

I thought when the new law comes into force it will apply to my notice also, so I have suggested the landlord they pay the legal fees and a smaller premium than previously discussed and they say they won't consider informal negotiations.  

So could anyone confirm please -  even if the new law comes into force I will still have to pay for their fees and can only extend for 90 yeras beause I had served section 42 notice before it comes into force? 

I think you've misunderstood something, but I'm not sure what.

Firstly, the new law hasn't been implemented yet (or to use your terminology - it hasn't come into force yet).

• Your application has been deemed withdrawn. So your section 42 notice is cancelled. Your application for a lease extension doesn't exist anymore, it's dead.

• So now you have to pay your freeholder's legal and valuation fees relating to that application. And you won't get a lease extension.

If you want, you can start a new application from scratch (by serving a new section 42 notice).

• If you serve the new section 42 notice before the new law is implemented, it will be governed by the current "rules"

• If you serve the new section 42 notice (or equivalent) after the new law is implemented, it will be governed by the new "rules"

Is that making sense? If so, maybe take a look again at my previous post.

Happyflat

Thank you once again.  I think I now understand better.  So the only way left now is informal negotiations, and I will have to pay for landlord's fees (unless they agree to pay in the informal negoation, which is unlikely).