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    • Cpt Kenrow
    • By Cpt Kenrow 17th May 19, 9:37 PM
    • 36Posts
    • 2Thanks
    Cpt Kenrow
    Extortionate Leasehold management pack (LPE1) fees
    • #1
    • 17th May 19, 9:37 PM
    Extortionate Leasehold management pack (LPE1) fees 17th May 19 at 9:37 PM
    I am in the process of selling a flat as an executor of an estate. Having never owned a flat I find the hold leasehold / share of freehold / landlord / management company somewhat confusing so bear with me.

    The flat has a share of freehold, but apparently still requires an LPE1 Leasehold Management pack so the purchaser (rightly) has all the necessary information on who owns the leasehold.

    Today I received and email from my solicitor saying the management company wanted 900 for this. How much work can it possibly be to provide details of something which they must deal with daily? However, they have me completely over a barrel, if I don't want to pay I will lose the buyer - seems like extortion, pure and simple!

    A little shocked I have looked into this and after a legal review the Commonhold and Leasehold Reform Act 2002 says administration charges must be "reasonable". Given this would seem above and beyond what most people would deem reasonable what is the next step?
    I feel I will have to pay to keep things moving, but I would like at least to raise a formal complaint against this company.

    At the end of the day I am acting as an executor as a favour, I personally have little to gain and this money will make practically no difference to the other beneficiaries. I will however probably have to front the payment.
    It is however, the principle here - and I really resent people taking advantage...
    Last edited by Cpt Kenrow; 17-05-2019 at 9:38 PM. Reason: Typo
Page 1
    • da_rule
    • By da_rule 17th May 19, 9:50 PM
    • 3,218 Posts
    • 2,904 Thanks
    da_rule
    • #2
    • 17th May 19, 9:50 PM
    • #2
    • 17th May 19, 9:50 PM
    You own a share of the freehold so therefore have the power (with the other freeholders) to remove the management company. I would maybe give them a call and remind them of this fact.

    Or just ring them and ask them each of the questions on the form and then fill it in as the personal representative of one of the freeholders.
    • eddddy
    • By eddddy 17th May 19, 10:45 PM
    • 7,811 Posts
    • 7,921 Thanks
    eddddy
    • #3
    • 17th May 19, 10:45 PM
    • #3
    • 17th May 19, 10:45 PM
    A little shocked I have looked into this and after a legal review the Commonhold and Leasehold Reform Act 2002 says administration charges must be "reasonable". Given this would seem above and beyond what most people would deem reasonable what is the next step?
    I feel I will have to pay to keep things moving, but I would like at least to raise a formal complaint against this company.
    Originally posted by Cpt Kenrow
    Ask them for a breakdown of the 900 - i.e. How much time they will take preparing the LPE1, the hourly rate, plus any costs.


    In the past, a tribunal has agreed the 50 per hour is a 'reasonable' rate for admin work. But perhaps an LPE1 needs to be filled in by somebody more senior than an administrator.

    Another measure of 'reasonableness' might be to compare the fee to what other freeholders charge (but you'd really need some evidence, rather than just anecdotes).

    If you conclude that the fee is unreasonable, you can pay it 'under protest' and then challenge it at a tribunal.
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