New LPE1 conveyancing form goes live
The changes arise from the new Building Safety Act 2022
An updated fourth version the LPE1 (Leasehold Property Enquiries) form has gone live. The Conveyancing Association (CA), Law Society, CILEX, Society of Licenced Conveyancers, as well as ARHM, BPF, TPI, RTMF and ARLA, are encouraging member firms to use the new versions.
The release coincides with a change in lender policies to enable them to lend on properties in remediation schemes, or those covered by leaseholder protections. The changes arise from the Building Safety Act 2022 which came into force in June last year.
This LPE1 form includes a number of additional questions, which cover:
- Whether the leaseholder deed of certificate has been served on the landlord in relation to the sale of the property or remedial works required?
- Whether a landlord’s certificate has been served?
- Where there is any outstanding enforcement action against the landlord or accountable person (as they will become known once Part 4 of the Building Safety Act 2022 is commenced), such as outstanding enforcement notices?
The form also includes new requests for documents covering the leaseholder deed of certificate, the landlord’s certificate, and any known enforcement action taken. Definitions for the ‘leaseholder deed of certificate’ and the ‘landlord’s certificate’ have been added, and an amendment has been made to the definition of a ‘right to manage company’.
The updated LPE1 forms can be downloaded from trade/representative bodies’ websites.
Beth Rudolf, director of delivery at the CA, commented: “As an industry we have committed to updating all the relevant forms in order to ensure we have the most up to date and fullest information possible at any given time.
“These amendments to the LPE1 form come off the back of further Government intervention in terms of building remediation, who is responsible for funding it and the responsibilities upon all parties. 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”.
She added: “Our next proposals, when the regulations have gone live and the dust has settled, will be to 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.”
Mairead Carroll, senior specialist, property standards at RICS, said: “These crucial updates to the LPE1 form will serve to further 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.
“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.”