What is the LPE1 & Why is it Needed?

The LPE1 or management pack, is a set of standard enquiries pertaining a leasehold property. With a leasehold property, whilst you may own the property, there may also be a freeholder or landlord. The LPE1 is usually completed by the freeholder or by a managing agent who have been assigned day to day control. The freeholder or landlord may impose conditions of ground rent and service change which will be detailed in the LPE1 amongst other items that will be needed to finalise the transaction.

What enquiries does an LPE1 cover?

The LPE1 is quite useful in that it provides a prospective purchaser with key information about the leasehold and it’s management. It is usually completed by the landlord or their managing agent and is usually accompanied with a fee that is borne by the vendors. The LPE1 will usually contain details of:

• Contact details for those who are responsible for the property. This includes landlords and any managing agents, if appointed.

• Service charge and ground rent payments. Dates for the period of any demands and any expected increases due to any proposed works or deficits will also be confirmed within.

• Confirmation of who will be responsible for the upkeep and maintenance of certain areas. This is quite important if there is a large common area such as with a flat.

• Who will be responsible for insuring the property - it is sometimes the case insurance is covered by the landlord.

• Post completion requirements - most landlords request a Notice of Assignment which is accompanied with a fee for them to provide consent to the transfer.

The completed LPE1 form will be attached with other documents such as Statement of Account(s), Fire Risk Assessment, insurance schedule (if applicable), planning permissions, proposed works and details of any current service charge/ground rent payments.

How much does a completed LPE1 cost? 

Usually the freeholder or their managing agent will charge a fee for obtaining the LPE1. This can vary depending upon the managing agent but it is typically between £100-£300. We always recommend this to be purchased upon agreement of a sale as it can take several weeks for the agents to provide the information.

Who needs an LPE1?

Regardless of whether you are selling or purchasing a leasehold property, an LPE1 will likely be required to proceed.

The vendors of the property will obtain the LPE1 because as the sellers, you are obliged to disclose certain information about the property to assist the purchasers, this includes obtaining the LPE1. The buyer relies upon the information supplied to them to make an informed decision on whether they wish to legally commit to the property.

As purchasers, the LPE1 will reveal any important information pertaining the leasehold aspects of the property. As a purchaser, it is quite important you are aware of any payments that may be due to any landlords or agents as a requirement of ownership. It will also confirm any other necessary conditions to ownership of the property.

If you require assistance with the conveyance of a leasehold transaction, please contact us for assistance.