Lease extension S42 period running out

[Ian_R]

My application to extend the lease on a flat has proceeded at a snail’s pace. A premium has been set and we have got to the stage of the freeholders’ solicitors drawing up a “Deed of Surrender and Regrant”. I have agreed this deed and it is now awaiting agreement from the freeholders, after which is the engrossment, the agreed draft document for signing, i.e. when we exchange contracts.

My problem is that the Section 42 application runs out on the 22 November 2008. I am getting a bit panicky that we are not going to exchange contracts by this date, 10 working days hence.

Should I make an application for LVT determination, but this will cost me time & a £350 fee? Would I have any leg to stand on as regards the freeholders’ costs claimable from me if the contract is not signed by that date and the freeholders then renege on the deal?

Many thanks for anyone’s advice on this.

[jeffrey]

My application to extend the lease on a flat has proceeded at a snail’s pace. A premium has been set and we have got to the stage of the freeholders’ solicitors drawing up a “Deed of Surrender and Regrant”. I have agreed this deed and it is now awaiting agreement from the freeholders, after which is the engrossment, the agreed draft document for signing, i.e. when we exchange contracts.

My problem is that the Section 42 application runs out on the 22 November 2008. I am getting a bit panicky that we are not going to exchange contracts by this date, 10 working days hence.

Should I make an application for LVT determination, but this will cost me time & a £350 fee? Would I have any leg to stand on as regards the freeholders’ costs claimable from me if the contract is not signed by that date and the freeholders then renege on the deal?

Many thanks for anyone’s advice on this.
See s.42(8). The Notice's validity continues, subject to s.54, until:

a. a new lease is granted; or

b. the notice is:
i. withdrawn [s.52];
ii. deemed withdrawn [s.43(3), 48(4), 49(5), or 53]; or
iii. ceases to have effect [see .s46(3), 47(1), 55(2); or para. 4(1) in Sched. 11 Part I; or para.7(1) in Sch. 12 Part II]..

[Ian_R]

Thanks Jeffrey, s48 (3)(4)(5)&(6) seem most applicable to my problem.

The Act is a bit woolly about what constitutes “where all of the terms of acquisition have been agreed between the tenant and the landlord”. What defines agreement as there are no signed documents as yet only a draft deed? At the same time, none of the terms of acquisition remain in dispute.

The Catch 22 is that s48 (6)(a) requires that a submission be made to the court (LVT) within “the period of two months beginning with the date when those terms were finally so agreed”. So I still have a limited time to pursue the lease extension if the freeholders continue their slow response. That period depends on what defines the agreement. Any further thoughts?

[jeffrey]

"Agreed" could mean 'agreed in correspondence', i.e. without a binding contract as such: two months from when all terms were settled.