Leasehold and Freehold Reform Act 2024

Counter-notice

5 (1) This paragraph applies if the landlord is given a rent variation notice by the tenant.

(2) Before the end of the response period, the landlord must give the tenant a notice (a “counter-notice”) which states either—

(a) that the landlord admits that, on the relevant date, the tenant had the right to a peppercorn rent, or

(b) that, for reasons specified in the notice, the landlord does not admit that the tenant had that right on that date,

and which also specifies an address in England and Wales at which notices may be given to the landlord under this Schedule.

(3) If the counter-notice admits the tenant’s right, the admission is binding on the landlord as to the tenant’s right to a peppercorn rent, unless the landlord shows that misrepresentation or concealment of material facts induced the landlord to make the admission.

(4) If the counter-notice admits the tenant’s right, the counter-notice must also state either—

(a) that the landlord admits that the right applies to the rent in respect of which the right is claimed, or

(b) that, for reasons specified in the notice, the landlord does not admit that the right applies to that rent,

and must also give the landlord’s response to the proposed premium, and any other consequential variations to the lease, specified in the rent variation notice in accordance with paragraph 3(6).

(5) The “rent in respect of which the right is claimed” is—

(a) all of the rent under the qualifying lease, if the rent variation notice includes a statement under paragraph 3(4)(a), or

(b) the rent which relates to the property described in the rent variation notice in accordance with paragraph 3(5), if it includes a statement under paragraph 3(4)(b).

(6) If the counter-notice admits that the right applies to the rent in respect of which the right is claimed, the admission is binding on the landlord as to that rent, unless the landlord shows that misrepresentation or concealment of material facts induced the landlord to make the admission.

(7) The “response period” is a period (for the landlord to give counter-notice) specified in the rent variation notice which begins with the day on which the notice is given.

(8) The rent variation notice may not specify a period of less than two months or more than six months.