What Are LPE1 Enquiries And Why Do I Need Them?
Posted on 18th May 2020
LPE1 enquiries, more formally known as Leasehold Property Enquiries, are, as they say on the tin; a standard set of enquiries pertaining to a leasehold property.
If you have not previously owned a leasehold property, this essentially means you will be the legal owner, but you actually Lease the building from the freeholder/landlord, who owns the land on which the property has been built. For more on leasehold properties, see our Preston solicitors’ blog, here.
In some cases, the freeholder/landlord can impose certain requirements on the property to pay ground rent and/or service charge, which can bring about the importance of LPE1 enquiries to your conveyance.
What do they do?
LPE1 enquiries are an extremely useful way of providing the prospective purchaser of a property with vital information about the property, and how it is managed. Completed by the landlord, the management company/agent/association, or anybody nominated by them, they allow the buyer an early opportunity to assess information, crucial to the day to day running of the property, inclusive of the following:
- Contact details for those who are responsible for the property, inclusive of any landlord and managing agents.
- Where, upon Completion, any notice of assignment, required by the Lease, is to be forwarded, together with any additional post-completion requirements and related fees.
- Who is responsible for the upkeep and maintenance of certain areas. This is particularly useful when purchasing a flat, or apartment, as part of a block or larger building.
- What the annual ground rent payments will be, inclusive of the amount and when payments are to be made. See our Preston solicitors’ blog on ground rent, for more information on why it is payable, here.
- What the annual, or indeed monthly, service charge payments will consist of. Such payments are, usually, required to cover the cost of upkeep and maintenance of communal areas, for example. The enquires will usually provide for an estimation of any proposed works in the future, that may mean the service charge figures could be set to rise, together with a yearly budget, advising how the service charge funds are split and what they are used for.
- Importantly, the enquiries will also confirm who is responsible for insuring the property.
In most cases, the enquiries are accompanied by additional documents, such as fire risk assessment documents, an up to date ground rent and service charge statement, confirming the current balance on the account, if any, and a copy of the current insurance schedule, confirming what is covered, as a handful of examples.
What do they look like?
A specimen form of the enquiries, showing each section in turn, can be viewed here. The Law Society have devised a the LPE1 Form in order that information can be received in a standard format. This also allows your conveyancing solicitor to gather the information effectively, and report to you accordingly, in light of Law Society guidance.
How much do they cost?
The service for providing the same does, of course, come at a fee. This can differ, agent to agent, however usually ranges from £100.00-£250.00. At MG Legal, where we are dealing with a leasehold property, we will alert you to the potential for such fees, from the outset. Our team pride ourselves on the competitive quotes we can supply, and, importantly, the fact that there are no hidden extras, just a simple fixed-fee quote. See our property fees page, for more information, here.
Who needs them?
Whether you be selling or buying a leasehold property, the involvement of LPE1 enquires can affect your conveyance in different ways.
- For those selling: When selling a property, there can be a requirement of the seller to provide the LPE1 enquiries. This is because, as the seller, you are required to disclose various pieces of information about the property, that aid the purchaser in carrying out their due diligence. The buyer places reliance on the information supplied to them, therefore, obtaining the information from the landlord or agent directly, helps avoid any potential misrepresentation issues arising. This is in order that they are aware of the relevant matters affecting the property, and can make an informed decision as to how they wish to proceed.
- For those buying: When purchasing, this is an opportunity to find out all relevant information pertaining to the involvement of managing agents and/or the property landlord. As a buyer, it is imperative that you are aware of any payments that may be due to any landlord or agent, when they may be due, and what other requirements are placed upon you in this regard. This is what the LPE1 enquiries are useful for, and your Preston solicitors would insist that the same are provided prior to Completion.
As you can see, the LPE1 enquiries can be a valuable part of the transaction, providing key information to the conveyance.
So, if you are selling or buying a leasehold property, and have a query in respect of the LPE1 enquiries, get in touch with our team today, at firstname.lastname@example.org, where we will be delighted to assist you.
Alternatively, if you have any other conveyancing query, submit an online enquiry today, and our local solicitors will be on hand to satisfy all of your conveyancing conundrums. Enquire with us here.
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