LPE1 form - Share of freehold

george4064

I live in a flat in a terraced house, we have share of freehold owned in equal amongst the 3 flats. So a 1/3 each.

One of the flats is being sold, the seller has completed a LPE1 form and asked the other freeholders to view, agree and sign. However they can't sign it due to conflicts of interest apparently.

However, I have 2 questions:

1. Is this form even relevant and should we perhaps be sinning a different form? Or perhaps no need to sign/complete this at all.

2. Would completing this form actually hold up the process for the seller and buyer? Could they exchange without this form?

G_M

It is a standard part of the conveyancing process for leasehold properties. The freeholder needs to complete and sign.


Without this, the buyer will not proceed.

What exactly is your reticence?

george4064

G_M wrote: »

It is a standard part of the conveyancing process for leasehold properties. The freeholder needs to complete and sign.


Without this, the buyer will not proceed.

What exactly is your reticence?

The property consists of 3 flats, and each flat owner owns a 1/3 of the freehold.

The property is leased from the freeholders to the leaseholders, who are the same people, hence my confusion over this.

Tom99

You are wearing two hats, one as a leaseholder and the other as a joint freeholder.
You sign the form with your freeholder hat on.
Not sure but I think you will also need to sign the transfer document when the time comes.

G_M

george4064 wrote: »

The property consists of 3 flats, and each flat owner owns a 1/3 of the freehold.

The property is leased from the freeholders to the leaseholders, who are the same people, hence my confusion over this.

Nothing confusing there - you have described the situation perfectly.


'The Freeholder' is a group of 3 people - of which you are one.
'The Freeholder' has granted 3 leases - one of which you own.


You are thus both a joint freeholder and a leaseholder.


One of the other leaseholders wishes to sell. His buyer understandably wants to understand the terms of the lease, and whether the ground rent has been paid up to date etc etc.


As this is a common requirement by buyers, the Law Society has produced a standard form (LPE1) which buyers can send out to get the answers.


Naturally, if the seller of the lease (who is also one of the joint freeholders) were to complete the form (eg saying the ground rent is paid up to date) this would be open to ... ehem... some latitude with the truth due to the conflict of interest.


Therefore the buyer will want one/both of the other joint freeholders to complete the form.

george4064

Thanks for confirming G_M!