Law Society and trade bodies issue revised leasehold property enquiries form

The Law Society, in conjunction with trade associations across the legal and leasehold sectors, has revised the leasehold property enquiries form LPE1.

The second edition of the LPE1 form was released on 1 October 2015 along with the introduction of a buyers leasehold information summary (LPE2).

Chancery Lane said the amendments had been made to:

• reflect changes in the Association of British Insurer agreements with lenders;
• provide better definitions and general wording; and
• include new questions aimed to reduce the need for additional enquiries, for example with regard to any transfer fees payable on sale.

The introduction of the buyers leasehold information summary (LPE2) followed recommendations from the Competition and Markets Authority’s Leasehold Study, which looked to find ways of improving the information given to buyers of leasehold property about the financial obligations they were taking on.

Organisations involved in the project included the British Property Federation, the Royal Institution of Chartered Surveyors (RICS) and the Association of Residential Managing Agents.

Law Society president Jonathan Smithers said: “This updated version of the form, with more industry bodies endorsing it, should increase its reach and effect bringing advantages to all involved in leasehold transactions, including managing agents and landlords, solicitors and conveyancers and, of course, most importantly, buyers and sellers.

“It is important that buyers have a proper understanding of the financial commitment they are taking on when they buy leasehold property. I hope that wider use of the new version of the enquiries will assist the supply of that information in a consistent form making it easier for those representing buyers to give them the information they need.

“The Law Society will make every effort to encourage the widest possible use of the new enquiry form amongst its members.”

Andrew Bulmer FRICS, UK residential director at the RICS, said: “Supporting consistent processes will also reduce burdens on business and ease the conveyancing process. It is gratifying to witness cross-industry stakeholders once again working together for the good of both consumers and practitioners and we look forward to widespread adoption of the new documents by industry.”

Chancery Lane said the new forms would be available through the main legal stationers, the Law Society Publishing website and the website of each of the trade associations involved.