Esra Dogan
Legal
What is the LPE1 Pack in Residential Conveyancing and Why is it so important?
If you are buying or selling a leasehold property, you’ll likely come across something called the LPE1 pack – a crucial part of the conveyancing process.
But what exactly is it, and why does it matter? The LPE1 (Leasehold Property Enquiries) is a standardised form used by solicitors to gather essential information from the freeholder and/or managing agent about a leasehold property. This pack helps the buyer understand the financial and legal obligations that come with owning the leasehold, many of which are not ascertainable from the lease alone and identifies whether there are any issues to be aware of before proceeding.
A fee is usually payable for the production of the pack which typically includes:-
- Ground rent and service charge accounts and service charge budgets
- Details of any arrears owed by the seller
- Planned major works
- Fire Risk Assessment
- Insurance arrangements
- Contact details for the freeholder/managing agent
- Details of any restrictions or permissions needed (e.g. for subletting or pets)
- Any additional regulations
- Details of any enfranchisments or notices sent or received
This information is vital for the buyer to assess the costs, legal obligations, and any potential risks associated with the leasehold. For example, high service charges or planned works could significantly affect affordability or influence whether the buyer proceeds.
From a seller’s perspective, delays in obtaining the LPE1 pack can slow down the entire transaction. It’s advisable to request it as early as possible.
Vernon Sellahewa, Solicitor in Mullis & Peake’s Residential Property team, said:
“The LPE1 pack plays a vital role in ensuring transparency during the sale of a leasehold property. It affords the buyer key financial and legal details from an early stage to avoid unnecessary additional enquiries being raised. At Mullis & Peake, we assist clients in managing leasehold transactions efficiently and ensure the LPE1 is requested promptly.”