Sales & Leasehold Management Packs (LPE1)

If you are selling a leasehold property you should speak to the people who deal with your Ground Rent and Service Charges, inform them of the sale, and request (as soon as possible) that they provide the Leasehold Management Pack (LPE1) to your conveyancer.

Ordering Leasehold Management Pack

You should pay for the Leasehold Management Pack as soon as a buyer is found.  If a pack is 6 months old an updated pack is going to be requested by the buyer’s solicitor. You will need to be organised and pro-active here. The Managing Agent, Management Company or Freeholder will charge for the pack(s).  Unfortunately an administration fee of £300 (or more) per pack, is likely. Some Leasehold Management Packs can take more than 3 months to arrive.  It depends on the provider.   There are Management Companies who are notoriously slow and difficult to deal with.

There May be 2 Packs

Often there is a Leasehold Management Pack for Ground Rent and another Leasehold Management Pack for Service Charges.  This happens where Ground Rent and Service Charges are collected by different parties. Each leasehold property is unique.

What Is Enclosed

Form LPE1 and enclosures such as:

• Ground Rent accounts,

• Service Charge accounts,

• Buildings insurance,

• Public Liability insurance,

• Fire Risk Assessment,

• Cladding information,

• Form EWS1,

• Asbestos Report,

• Estate regulations,

• Management Company Memorandum

• Articles of Association

• Share Certificate

• Notice Fees and requirements

• Deed of Covenant precedent

• Licence to Assign requirements

• Details of arrears

• Sinking / Reserve Fund details

• Restriction requirements

Each building is unique and therefore the above list is not exhaustive.

Why Are They Needed

Your Buyer’s Conveyancer will NOT be able to proceed without the Leasehold Management Pack(s) because of due-diligence and compliance requirements. Their hands are tied and they cannot move forward without checking the pack(s) and reporting to the buyer (and lender) on the leasehold management for the building. The point of the pack(s) is to ensure that the Freeholder or Management Company are managing effectively and the buyer is fully informed.

The Buyer's Conveyancer will review the pack(s) to check the building is appropriately managed and is good security for the buyer and lender. Anything that may cause an issue on resale should be investigated. Conveyancers will be looking for arrears, future costly major building works, evidence of sinking fund (reserves), among other things. Any concerns are referred to the buyer and their mortgage lender to take a view upon. Some mortgage lenders are very strict on what they will accept with leasehold properties.

Not obtaining the pack(s) aa soon as possible away will delay your sale.  Sadly, Leasehold Management Packs are a necessary and expensive evil in Leasehold sales.

NB: If you are the Freeholder, or one of the Freeholders, you may want to instruct an expert to assist you in preparing the pack which consists of a form LPE1 and various enclosures such as Ground Rent accounts, Service Charge accounts, buildings insurance, Fire Risk Assessment, Cladding information, Form EWS1, Asbestos Report, Estate regulations, Management Company Memorandum & Articles of Association, etc.  An Agent or a Conveyancer can do with this.   I also offer this service for a fee.   Feel free to get in touch.

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emma@emmaselfridgelawyer.com