LPE1 – Ask for a copy
Most leaseholders will have encountered the term LPE1 as either a buyer or a seller of a leasehold property, but what is it for?
The LPE1 form is the Leasehold Property Enquiry form, it is designed to gather information about the leasehold property that is for sale to highlight any potential problems that exist in the running and/or management of the leasehold development. It also confirms the level of Service charge cost and any Ground rent amount. In addition, it also requests a copy of the budget for the current year and looks to establish if there is or could be any cost that maybe incurred with the property in the near future.
These forms are normally completed by either the Landlord/Freeholder or managing agent and usually charge anywhere between £150 and £350 for this assistance. When completing an LPE1 form in nearly all cases it will need to be accompanied with copies of additional documents, such as insurance policies and health and safety policies etc, and as such this can be a time consuming process for those tasked with its completion.
The reason to ask for a copy
If you are a leaseholder, and you are looking to sell or if you are a buyer looking to become a leaseholder then always request a copy of the LPE1 from your solicitor, often this form is only ever used by the solicitor. often the conveyance process, however as a seller it is good to know how your property is being presented, and as a buyer it is a useful reference document for the future if any of the statements made within the form prove incorrect – which sometimes happens.
If you have concerns
The LPE1 is a useful document, but when either buying or selling leasehold properties knowledge is paramount. If you receive a copy of your LPE1 and there are concerns with its content then consider a leasehold investigatory service, http://www.landlordsandtenantssupport.co.uk/leasehold-tenants-purchasers/ If you are selling or buying a leasehold property some timely due diligence can save you several sleepless nights.