The LPE1 form collects information held by landlords and managing agents, including ground rent, insurance and service charges.
The form is used at the start of the buying process so the seller can share information with buyers of a leasehold property and is used as a basis of work by the conveyancer on behalf of the buyer.
The updated version includes additional questions and requested documents on who deals with the deed of covenant, whether a landlord certificate has been served and whether there is outstanding enforcement action against landlords or accountable persons.
Definitions for the Leaseholder Deed of Certificate and the Landlord’s Certificate have been included, along with an amendment to the definition of a Right to Manage company.
The Conveyancing Association, Law Society, Chartered Institute of Legal Executives, Society of Licenced Conveyancers, Association of Retirement Housing Managers, The British Property Federation, The Property Institute, Right to Manage Federation andARLA Propertymark will all have updated versions of the form available.
Updated certificate coincides with updated lender policies
The updated from will go live from Monday and coincides with lenders changing their policies at the end of last year to be able to lend on properties in remediation schemes or covered by leasehold protections.
The above changes from lenders are also due to the Building Safety Act which came into force from 28 June last year.
Beth Rudolf, director of delivery at the Conveyancing Association, said that the industry had committed to updating relevant forms to ensure it has the “most up-to-date and fullest information possible at any given time.
“It should help conveyancers and other property professionals provide as much information as possible around the current circumstances, as advised to them, and allow them to tailor their advice based upon it.”
Rudolf continued that its next proposals, when regulations have gone live, will “create a standard set of additional enquiries to ensure the conveyancer receives the information necessary to advise their clients – either the borrower or the lender – on what they have been told the current position is”.
“For example, whether the cost of the remediation work is completely covered, when it will be done, whether it will require the leaseholder to vacate the property, etc. This will allow conveyancers to gather the new information needed by stakeholders during the sale or remortgage process,” she explained.
RICS: ‘Additions are a step in the right direction’
Mairead Carroll, senior specialist, property standards at RICS, said that the updates from the LPE1 form would “clarify the remediation responsibilities of different parties, improving efficiency and accuracy in the conveyancing process”.
“With conveyancing becoming an increasingly complex procedure, it is vital key data-gathering tools, such as the LPE1, are fit for the demands of today’s profession,” she added.
Carroll continued: “These additions are another step in the right direction as we progressively improve the process for consumers and professionals.
“With the new guidance from RICS for valuers on how to take into account any agreed remediation funding and timelines when forming their objective opinion of value on properties in blocks of flats with cladding, new statutory leaseholder protections and lending industry commitments to recommence mortgage loans, leaseholders looking to sell and prospective buyers should have greater clarity.”
