From 09 January 2023, the revised LPE1 (Leasehold Property Enquiries) form will be in circulation for use by conveyancing practitioners. An LPE1 form is used to obtain information about the property which is being sold and becomes part of the Leasehold Management Pack. The purpose of it is to confirm specific details about the property, including ground rent, service charges, building management, and who is responsible for what. Most importantly, the LPE1 establishes if there are any problems that exist which may affect the property in the near future.
The LPE1 form has been updated as a result of the Building Safety Act 2022 which came into force in June 2022 (following the Grenfell fire consultation). The additional questions in the form are as follows:-
1. Whether the Leaseholder Deed of Certificate has been served on the Landlord in relation to the sale of the property or remedial works required to the property.
- If you are the leaseholder, you can choose to complete and send a deed of certificate to your landlord (freeholder) at any time. You must complete a deed of certificate if your landlord notifies you that they require one, either because you are selling your property or there is a defect in the building. If you do not complete it, you will not benefit from the protections for qualifying leases.
- For reference, the freeholder is the owner of the property (for example, this could be a developer) whereas the leaseholder owns the property on lease from the freeholder typically for 99, 125 or 999 years.
2. Whether a Landlord’s Certificate has been served.
- The certificate must confirm whether or not the relevant landlord (freeholder) was responsible for a relevant defect (or associated with someone who was) and whether or not it met the contribution condition i.e. leaseholders are only required to contribute towards remediation costs in limited circumstances.
- A defect may arise for a number of reasons including the work being completed using wrong materials or not in accordance with good practice or a particular design. The type of defect which would give rise to leaseholder protection is set out on the Government website (Definition of ‘relevant defect’ - GOV.UK (www.gov.uk))
3. Whether there is any outstanding enforcement action against the Landlord or accountable person.
- This includes outstanding enforcement notices i.e. where there has been a breach of planning control which has not been resolved. The Local Authority can take enforcement action requiring rectification of works which do not comply with building regulations.
The revised form also includes a request for documentation to evidence the above questions.
Further, the revised form coincides with lenders who have changed their policies to be able to lend on properties in remediation schemes or those covered by leaseholder certificates.
If you are selling or buying a Leasehold property, contact our Conveyancing team today to find out how we can help by calling 0808 1685 643 or fill out an online enquiry form, or email getmoving@ramsdens.co.uk, and we will be in touch.