FME1 and LPE1: What’s the Difference?

In short, the packs are a bundle of documents completed by a landlord and/or management company to provide further information on a property.

The LPE1 Pack

The LPE1 pack is a bundle of documents which contain important information about the leasehold property a buyer intends to purchase. Form LPE1 (Leasehold Property Enquiries) is used for collecting information held by landlords and managing agents.

In some cases, the landlord may be able to answer the LPE1 form in full, however if they have employed a management company or managing agent, the agent may provide their own version of the LPE1 relating to service charge responsibilities and a separate LPE1 would need to be obtained from the landlord for information on ground rent responsibilities. This could result in a seller having to pay 2 sets of fees in order to obtain 2 LPE1 packs to provide to the buyer, one for ground rent and one for service charge.

The LPE1 pack will provide a buyer with information on who the landlord and (in some cases) the management company are and their contact details. The pack will also provide information on ground rent, service charge, insurance, fire risk assessments, asbestos reports any upcoming major works, disputes and any requirements they must comply with in order to be registered as the legal owner.

The FME1 Pack

In contrast, Form FME1 (Freehold Management Enquiries) is for freehold properties that have shared communal areas with the neighbouring properties which are maintained by a management company. The form provides information on the management company’s responsibilities for the communal grounds, and the costs to be paid by the homeowners who benefit, in the form of service charge.

The FME1 pack also provides information on a buyer’s legal or financial obligation when they move in and any maintenance arrangements which have been agreed, as well as any supporting documentation such as insurance, fire risk assessments, asbestos reports, meeting minutes and other important documents the buyer would benefit reviewing.

The seller is responsible for obtaining this pack (usually for a fee) and providing the pack to the buyer for their information and to assist with their purchase due diligence.