Section 45 Notice

The Landlord has until the expiry of the deadline specified in the offer notice to serve a counter notice, otherwise known as a Section 45 Notice, which must either…

  • Accept the tenant’s offer entirely
  • Deny the tenant’s claim entirely
  • Accept the tenant’s claim, but reject some proposals and state counter proposals

It is rare for the landlord to accept your offer because that would mean dismissing the possibility of obtaining a higher premium. This only happens in exceptional cases where the landlord does not wish to wait in order to receive funds e.g. if they are in receivership.

Occasionally the landlord may reject the claim outright if they believe that the notice is invalid or that you are not entitled to a statutory lease extension.

Most commonly the landlord will accept all the terms except the premium amount offered, suggesting instead an improved figure from which to negotiate.

If no counter notice is received at all before the two month deadline, then you may proceed with the lease extension on the terms set in the offer notice.

Written by Simon Masters

Senior Associate Solicitor

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