LPE1 form - is it necessary when selling a l/h flat?

Ms_Sophia

Hello all.
We're in the process of selling a leasehold property and accepted an offer from buyers. Our solicitors asked us to fill in a Leasehold Information Form TA7 form - that we did. It has all the info about the lease, service charges, ground rent etc.

Now the buyers solisitors have asked us to provide the LPE1 form. And the freeholder's solicitors are asking us for £240 just to fill in this form. I've looked at this form - it is asking the same questions as the form TA7. So why would they need this exactly?

I looked at the Law Society website and it says:
"It will not be mandatory to use LPE1 - you will still be able to use your own forms."

I've then said to our solicitors that the form TA7 should be sufficient for the buyers solicitors. But he's come back with
"These forms do form part of the process and whether the landlord completes this form or provides their standard leasehold pack the buyers solicitors will insist upon one of these. This is standard and is something we insist upon. I doubt it very much that they will proceed without this information. "

So the question is to all who is selling/ sold their leasehold property - did you have to provide this LPE1 form?

thesaint

It seems that it doesn't matter whether others have provided it or not.

It seems to be the same situation where a buyer wants the vendor to provide proof that the boiler has been serviced.
There is no obligation to, so some do or risk the buyer pulling out.

Ms_Sophia

I am just trying to understand whether it is indeed required in all / majority of the sales of leasehold flats. I.e. how common it is.

Can I just say to our solicitors - pls reply to the buyers solicitors saying that "the vendor's instructions are the following - all questions in regards to leasehold, service charge, ground rent and similar have been answered in the copy of the lease and TA7 form. The vendor is not willing to incur additional charges associated with obtaining a LPE1 form".

And then wait and see what they come back with (if any)?

Shahni

You can try but the response may well be the buyer pulling out.

LPE1 (or the standard leasehold pack if they have one) is the norm in leasehold transactions. They are not asking for anything unusual.

G_M

You, as seller/leaseholder, have completed TA7. Fine.

But LPE1 is not designed for the leaseholder. It is designed for the freeholder to complete. Yes, as the Law Society says, the freeholder can choose to provide the information on ther own form/format if they wish, rather than use LPE1, but your buyer will want replies from the freeholder.

This is normal.

Ms_Sophia

I see, thanks.
I am just not comfortable with coughing up yet another sum of money - whilst I am not 100% confident these buyers wouldn't pull out at the last moment.

If they do pull out, would I be able to use this LPE1 form for selling this property to another buyer? How long would the form be valid for?

G_M

The buyers might say the same thing.

They've 'coughed up' for legal costs, probobly a mortgage application, a survey, searches etc. They, like you, are not 100% confident you will not pull out at the last minute.

Works both ways.

££sc££

all these extra costs do add up don't they? However, your buyer's solicitor is going to want confirmation from the freeholder for lots of things, e.g how can you answer whether there's going to be a service charge increase of 10% or more in next two years?, or whether there's any s20 works due, or whether the other lessee's leases are similar? There's lots of questions in there that only the freeholder will now and even if you did know the answers the buyer's solicitor will want to see it from the freeholder. i answer these for a large freeholder and have done hundreds now, I've only known 1 or 2 sales take place without any pre sale enquiries to the freeholder and that's where it's been a transfer within a family for example. In terms of how long they're valid, there isn't a specific time i don't think, guess it'll be down to if the second buyer's solicitors would accept the dated replies. In the past a seller has paid us for it and then their buyer pulled out, their subsequent buyer just asked for up-to-date service charge accounts and a couple more queries which we answered without charge. In terms of the fee, we charge about £180 in the public sector, but I've come across agents in the private charging around £460 so perhaps your quote is about right.

louisjk1990

I cant get my freeholder to even send the leasehold information pack out to me to give to our buyers. We've been waiting 5 months! Is there anything that can be done to force them to do it or are they under no legal obligation to send it out?