Better information about financial obligations for buyers of leasehold homes from today
A working group comprised of the UK’s leading property experts has today announced that a new Leasehold Property Enquiries Form to be used during the buying process should help homeowners understand the ongoing financial obligations when buying a leasehold property
October 1, 2015
From today, a new LEP1 and LEP2 form, which are critical parts of the documentation when purchasing a property, will provide further information to purchasers to give them a better understanding of their ongoing financial obligations when buying a leasehold property.
The LPE1 Working Group – which includes representatives from the Law Society, the Royal Institution of Chartered Surveyors (RICS) and the HomeOwners Alliance – has come together once again in an effort to maintain the quality and relevance of the form.
Paula Higgins, HomeOwners Alliance CEO said:
“Buyers purchasing leasehold properties need a much greater understanding of their ongoing costs, liabilities and obligations. All too often service charges and maintenance costs come as a nasty surprise to the new homeowner. The key message we want to get across to any buyer is that they are not actually buying a property, but the right to live in one for the term of the lease. These new forms are a crucial step to help educate buyers and we are delighted that the industry has taken a proactive approach.”
At an event hosted by the Conveyancing Association on 1st October, a new memorandum of understanding will be signed by the existing Group representing all the leading organisations in conveyancing, estate agency, property and leasehold management. All of the organisations have endorsed the new form and recommended it for use.
The second edition of the form is scheduled for release today, 1st October 2015. Changes will include:
- Amendments to reflect changes in the Association of British Insurer agreements with lenders;
- Better definitions and general wording; and
- Inclusion of additional questions designed to reduce the need for further enquiries with regard to transfer fees payable on sale, for example.
The group will also announce the addition of a Buyers Leasehold Information Summary (LPE2) to the document, in support of recommendations from the Competitions and Market’s Authority (CMA) Leasehold Study. This will provide further information to incoming lessees to give them a better understanding of their financial obligations under the lease.
Over the last 12 months, the group has been working together to review and update the contents of LPE1. The new forms will continue to be made available to all and have been published through the main legal stationers, thanks to the Legal Software Suppliers Association (LSSA). They will also be available via the group members’ websites and the Law Society Bookshop.
Since its launch in October 2013, the LPE1 document, which aims to improve the consistency and reduce the volume of paperwork required during a transaction process whilst providing better information for buyers, has been well received by property professionals across the board.
If you would like a copy of the forms, please contact us at firstname.lastname@example.org