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Notice of claim to exercise right - [LRHUD1] [LRHUD1A] - (4 pages)


Tenant's notice to buy a new lease under the 1993 Leasehold Reform Housing & Urban Development Act

Guidance on completing the form

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Background Information

1. HUD1 is a notice of claim by the tenant, or their personal representative, to the landlord to exercise the tenant's right to acquire a new lease of the flat, for a term of 90 years plus the present unexpired term, all at a peppercorn rent (which is basically the same as being rent free), under section 42 of the Leasehold Reform, Housing and Urban Development Act 1993. This process is sometimes referred to as a lease extension.

2. To qualify, the tenant must have a lease which, when it was granted, was for a term of over 21 years. It does not matter how long now remains and they must have owned this lease for a minimum period of two years. You do not need to have lived in the property for this period, merely owned the lease.

3. It is advisable to appoint a valuer and a solicitor. The valuer will provide the tenant with the ‘best and worst’ case valuation and also on the amount of the offer to be made in the Notice. The valuer will also help in responding to the landlord’s Counter-Notice and with the negotiations and settlement of the price and other terms of the lease, including representation at the Leasehold Valuation Tribunal (LVT).

4. The Notice triggers the statutory procedures for acquiring new lease and the leaseholder is liable for the landlord’s reasonable costs as from the date he received the Notice. Therefore it is advisable to have the finances in place before starting the procedure. It is also important that the Notice contains no inaccuracies or misdescriptions because, although these can be corrected by application to the county court, it is an expense that should avoided. An incomplete Notice can be rejected as invalid.

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