LPE1 Form - Query

Danni2121

Hi all


I'm currently in the process of selling my leasehold house (nightmare!) We are right at the end and now I've been hit with a £250 bill for the freeholder to fill in the LPE1 form (I've already filled in the TA7 which holds some of the info)
Two things here, my parents are actually buying my house and when they do they are purchasing the freehold. I don't mind paying the £250 but it's all going to be irrelevant in a few months - even weeks!
So my Q is.. Is the LPE1 form required by law? Or if my parents are willing with complete without it, is that ok?

Thanks in advance!

eddddy

There is no law saying an LPE1 form must be completed, but if your parents are buying with a mortgage on the lease, the lender may require it.

Are your parents completing on the leasehold and freehold at the same time?

Are they buying with a mortgage? If so, is it a mortgage on the leasehold or freehold interest?

If they're getting a mortgage on the freehold (and the lease is being extinguished), the lender won't require an LPE1.

And if they're buying the freehold, I would have thought they would have all the info stated in the LPE1 anyway.

Danni2121

No they will complete as leasehold as we aren't sure of the actual date the freehold element will be ready to complete but they are in final stages.
They are buying with a mortgage, which will be on the leasehold interest.


I suppose I need to check if it's the lenders that are requesting it.


Thanks for your reply

eddddy

Danni2121 wrote: »

No they will complete as leasehold as we aren't sure of the actual date the freehold element will be ready to complete but they are in final stages.
They are buying with a mortgage, which will be on the leasehold interest.

I suppose I need to check if it's the lenders that are requesting it.

How are your parents buying the freehold? Is it...

• through an 'informal agreement' with the freeholder?
• using the statutory process ( as in The Leasehold Reform Act)?

If it's an 'informal agreement', you/they should bear in mind that the freeholder can change their mind (or increase the price) at any time until contracts are signed.

If your parents buy the leasehold, then the freeholder changes their mind, your parents would have to wait 2 years before they could kick-off the statutory process.

Whereas you could probably kick-off the statutory process now whilst you still own the leasehold, if you've already owned the house for 2 years.

(And the freeholder cannot usually block the statutory process.)