What is an LPE1 form? Everything you need to know
An LPE1 form is an important document that a leasehold buyer’s solicitor will heavily rely on during the conveyancing process. It will need to be completed by the freeholder or their managing agent, who will need to ensure the information provided is as accurate as possible – otherwise, they could face a claim for damages from the buyer.
What is an LPE1 form?
The LPE1 form (short for Leasehold Property Enquiry form) contains vital information about a leasehold property, such as contact addresses for the freeholder or how much service charge is payable for the property. The freeholder or their managing agent will need to fill this out for a leaseholder who wants to sell their property. While it is possible to sell a property without an LPE1 form, it will be difficult to find a buyer who is willing to proceed with the purchase without one. A buyer’s conveyancing solicitor will warn the buyer that it is risky to purchase a property without all the necessary information, which may well put a client off. Buying, selling or remortgaging? Use our online conveyancing quote calculator to obtain an instant conveyancing quote.
What is a leasehold property?
The owner of a leasehold property actually owns a lease which grants them ownership of their property for the period of time specified in the lease, usually for a period of 99 to 125 years. Most leasehold properties are flats or apartments, but houses can also be leasehold. The land that the building stands on is owned by a separate freeholder, who is responsible for maintaining the common areas of the building and arranging building’s insurance.
Is an LPE1 form the same as a management pack?
No, the LPE1 usually forms part of the management pack. The management pack is a bundle of documents necessary for the sale of a leasehold property that the seller will need to purchase from the freeholder or their managing company.
Who has to complete the LPE1 form?
The LPE1 form will need to be completed by the freeholder or their managing agent. It is advisable for the freeholder or managing agent to instruct legal representation to assist with the completion of this form, as they can be held liable for any damages the buyer suffers as a result of misinformation.
What information should the LPE1 form contain?
The LPE1 form will generally contain information such as:
- The freeholder’s name, address and contact information
- The Management Company and their contact information (if applicable)
- Who Ground Rent (if applicable) is paid to and how much is paid
- Who the Service Charge should be paid to and how much is generally payable
- Who is responsible for dealing with day-to-day maintenance and arranging buildings’ insurance
- Whether Notice of Transfer Or Charge is required
- Whether a Deed of Covenant is required
- Whether there have been any disputes between the leaseholder, the previous owner of the leasehold property and/or the freeholder.
- Whether a fire risk assessment has been carried out at the property.
- Whether the property has any Japanese knotweed growing on the property or whether it has had problems with Japanese knotweed before.
Following updates made to the LPE1 form in January 2023, the LPE1 form now includes additional questions about:
- Whether the leaseholder has served a deed of certificate onto the freeholder
- Whether the Landlord’s certificate has been served
- Whether there is any outstanding enforcement action.
What is a notice of transfer or charge?
A notice or transfer of charge is a document which notifies the freeholder of the leasehold sale, includes the contact details of the incoming leaseholder and, if the buyer is purchasing the property with a mortgage, who their lender is. The purpose of this document is to ensure the freeholder has the correct contact details for the new leaseholder to send communications regarding ground rent, service charges or works to be carried out to the building. It is the freeholder’s decision to decide whether a notice of transfer or charge will be necessary, but it is a good idea to demand one be served. The freeholder or managing agent may also charge a fee for receipt of this notice and the fee should be included in the LPE1 form.
What is a deed of covenant?
Leases contain freeholder and leaseholder covenants, which are legal promises by both parties to do or not do certain things with the property. Common examples of freeholder covenants are to maintain common areas sufficiently and make sure the building is properly insured. When a leasehold property is sold, there usually will not be any need to create a new lease unless the buyer’s lease is to include different terms. Therefore, without a deed of covenant, there is no legal document which obligates the incoming leaseholder to fulfil the previous leaseholder’s covenants, so only the previous leaseholder (the seller) could be held liable for failure to perform the tenant covenants. It is therefore highly recommended for the freeholder to create a deed of covenant with the incoming leaseholder, which will make the incoming leaseholder responsible for the leaseholder covenants contained in the lease. The freeholder may also charge a fee for receipt of the deed of covenant and the amount should be stated in the LPE1 form.
Japanese Knotweed question in the LPE1 form
Japanese knotweed is a type of weed which can grow over 2m in height, spreads quickly and can be very hard to get rid of. It is such a huge problem for property owners due to the fact it can grow through concrete and cause catastrophic damage to property foundations. The LPE1 form includes a question regarding whether the freeholder is aware of any problems the property has or has had previously with Japanese knotweed. We advise clients only to answer “no” to this question if they can be 100% certain that no Japanese Knotweed is growing on the property, including any roots which may not be visible above the surface – it is best to put “not sure” if you cannot be completely certain.
What is a Deed of Certificate and do I need one?
In July 2022, the Buildings Safety (Leasehold Safety)(Information etc) Regulations 2022 were introduced which meant leaseholders who own property in buildings at least five storeys tall (or 11m in height) with a history of safety issues are protected from having to pay repair costs in order to make their properties safe, which could be way beyond their financial capabilities. Instead, the developers who built the properties (even if they no longer own them) are responsible for fixing any safety defects that they created. A leaseholder can now at any time serve a Deed of Certificate onto their landlord which confirms how the property was being occupied on 14th February 2022 for the purposes of confirming whether or not the leaseholder qualifies for the protections offered by the 2022 regulations. This can be done at any time and the freeholder can also request a Deed of Certificate within five days of finding out that the leaseholder intends to sell their property or that the property has an inherent safety defect. Once the leaseholder has passed on their completed Deed of Certificate , the freeholder will then need to respond with a Landlord’s Certificate which confirms whether the leaseholder is eligible for the protections offered by the 2022 regulations. As of January 2023, the LPE1 form now includes a question asking whether a Deed of Certificate has served on the freeholder and whether the freeholder has responded with a Landlord’s Certificate.
What is meant by enforcement action?
The Local Authority has the discretion to take enforcement action against any violation of planning control. Following the amendments made to the LPE1 form in January 2023, the freeholder will need to confirm whether there is any outstanding enforcement action being taken against the property that has not yet been resolved.
Who pays for the LPE1 form?
The seller will usually need to pay to obtain the LPE1 form from the freeholder.
How much does the LPE1 form cost?
That will depend on the fee that the freeholder or their managing agent chooses to charge for the management pack. Fees for an LPE1 form typically range between £200.00 to £400.00, but there is no maximum figure a freeholder or managing company can charge.
How long does an LPE1 form take to complete?
Completing the LPE1 form is quite an arduous task, especially if the freeholder or managing company does not have easy access to the information required. This means that the leaseholder is often left waiting to receive the completed LPE1 form for weeks or even months, causing significant delays in the conveyancing process. For this reason, we strongly advise leaseholders to request the LPE1 form from their freeholder or managing agent as soon as possible in order to avoid significant delays.
Does the freeholder have to complete the LPE1 form?
The freeholder will need to complete the LPE1 form as the form will require information that the leaseholder will generally not have access to. However, there is no legal obligation on the freeholder or their managing company to complete the LPE1 form on behalf of a leaseholder. Although the freeholder can instruct a conveyancing solicitor to complete this time-consuming task on their behalf, it is the freeholder’s ultimate responsibility to make sure that the information included in the LPE1 form is correct to the best of their knowledge.
How do I complete an LPE1 form?
The LPE1 form can be downloaded from the Law Society Website and then completed either by hand or electronically.
Why is it important to take legal advice when completing an LPE1 form?
It is vital that the information provided by the freeholder is accurate as possible, otherwise the freeholder can be sued for misrepresentation by the buyer if the information included in the LPE1 form is incorrect. Even if the incorrect information was given by honest mistake, the freeholder could still be held liable. Instructing a knowledgeable conveyancing solicitor significantly reduces the likelihood of a claim being made, as a solicitor can explain each question to you in full and assist you with completing the LPE1 form in a way which significantly reduces the chances of a claim being made against you.
How Starck Uberoi Solicitors can help
Our dedicated leasehold solicitors have in-depth knowledge of the leasehold sale process for all parties and can provide assistance with complete the LPE1 form. We are leasehold specialists with broad experience in a wide range of different leasehold matters which enables us to provide a high standard of legal advice and support in all circumstances. To book an appointment with a member of our team, please call 020 8840 6640 or email solicitor@starckuberoi.co.uk today.
We have solicitors in Brentford on the High Street in a grand three-story building, just a ten minute walk from Brentford Railway Station. Our solicitors in Richmond on Thames overlook the picturesque Richmond Green just a five 5 minute walk from Richmond train station. Our Belgravia solicitors are located in a prestige location in Grosvenor Gardens and our solicitors in Ealing Broadway are located close to the University of West London. Finally our Canterbury solicitors are located in the within the UNESCO World Heritage Site of Canterbury Cathedral.
Our partner, Raminder Uberoi, can also provide a Notary Public service at any of our London offices.
Frequently asked questions
How long is an LPE1 form valid for?
An LPE1 form is only valid for 6 months after it has been completed, which can lead to disaster if your sale falls through. The buyer’s solicitor may ask for an updated LPE1 form to be completed, for which the freeholder or managing company will be able to charge again.
How do I complete an LPE1 form if I own a share of the freehold?
You and your fellow co-freeholders will need to complete the LPE1 form yourselves in your capacity as freeholders. As you (or your agent) will be responsible for management of the freehold anyway, you will most likely have the information you need to compelte the form – nevertheless, it is still a good idea to instruct legal representation in order to reduce the risk of a claim being made. Fortunately, you will likely not need to pay a charge for the LPE1 form.
What can I do if my freeholder refuses to complete the LPE1 form?
Unfortunately, as there is no obligation on your freeholder to complete the LPE1 form, there isn’t much that can be done. If the freehold is managed by a professional management agency, you may be able to raise a complaint with them, but in any case there is no way to force the freeholder to complete the LPE1 form for you. The best thing to do in this scenario is to be upfront about the situation with your solicitor, who will be able to advise you on the best course of action.
What can I do if I cannot contact my freeholder?
If you simply cannot track your freeholder down, there isn’t much that you can do. Your buyer may be willing to accept absent freeholder indemnity insurance and proceed with the sale, which will mean they will be able to claim against you for any damages that they would not have incurred had they had the right information. Even if your buyer is willing to accept indemnity insurance instead however, their lender may not be. Therefore, it is best to make every effort possible to locate your freeholder. If you’ve done everything you can and still haven’t had any luck, you can apply to Court for a Vesting Order which will transfer the freehold to yourself and your fellow leaseholders in exchange for a purchase price. If you’re dealing with an absentee freeholder, get in touch with a member of our property team today to find out your options.
Read more
- Selling your freehold with a Section 5 Notice
- Share of Freehold Conveyancing
- A Conveyancer’s Guide to Selling your Leasehold Flat
- Selling a Property with a Short Lease
