The revised form includes Building Safety Act 2022 requirements
An updated version of the leasehold property enquiries (LPE1) form has been launched by trade and representative bodies covering the legal, surveying, estate agency, and property management sectors.
Going live today, January 9, the release of the new revised form will coincide with lenders changing their policies to be able 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 on June 28, 2022.
This is the fourth version of the LPE1 form, and includes a number of additional questions and new requests for documents covering the leaseholder deed of certificate, the landlord’s certificate, and any known enforcement action taken.
Trade associations such as the Conveyancing Association, the Law Society, the Chartered Institute of Legal Executives, the Society of Licenced Conveyancers, the Association of Retirement Housing Managers, the British Property Federation, The Property Institute, the Right To Manage Federation, and the Association of Residential Letting Agents are encouraging their member firms to use the new versions from today.
“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,” Beth Rudolf, director of delivery at the Conveyancing Association, said.
“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.”
Rudolf added that their next proposals 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.,” she said. “This will allow conveyancers to gather the new information needed by stakeholders during the sale or remortgage process.”
Mairead Carroll, senior specialist of property standards at the Royal Institution of Chartered Surveyors (RICS), remarked that the 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,” Carroll said. “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.”
The updated LPE1 forms can be downloaded for free from the trade and representative bodies’ websites and will be circulated among law firm stationers and CRM systems by software providers such as Advanced. Further guidance can also be found on the government website, gov.uk.
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