Freeholder Refusing LPE1 Form Completion – Your Options Explained

Freeholder Refusing to Complete the LPE1 Form: What Are Your Options?

The Leasehold Property Enquiries (LPE1) form is a critical document in the sale of a leasehold property. It provides buyers with essential information about the lease, service charges, ground rent, and property management. A refusal by the freeholder to complete this form can stall or jeopardize a sale, causing frustration for both sellers and buyers.

Here’s what you need to know and the steps you can take to resolve the issue.

Why Is the LPE1 Form Important?

The LPE1 form is required by buyers and their solicitors to:

• Verify the financial status of the property, including service charge payments.
• Understand the terms of the lease and any restrictions.
• Ensure there are no arrears or disputes tied to the lease.

Without this form, buyers may be reluctant to proceed, or mortgage lenders may decline financing.

Reasons Freeholders Refuse to Complete the LPE1

Freeholders may refuse or delay completion of the LPE1 form for several reasons:

1. Outstanding Arrears: The freeholder may withhold the form until service charge or ground rent debts are cleared.
2. Administrative Burden: Some freeholders claim they lack the resources or staff to handle the request promptly.
3. Fee Disputes: Freeholders often charge a fee for completing the LPE1, which may cause friction if considered unreasonable.

Steps to Take If a Freeholder Refuses

1. Check the Lease Agreement: Review your lease for any clauses obligating the freeholder to cooperate in property sales or provide necessary documentation.
2. Offer Payment for the LPE1 Form: Freeholders are typically entitled to charge a fee for completing the form. Ensure you’ve offered to pay this fee to avoid disputes.
3. Send a Formal Request: Issue a written request for the completion of the form, emphasizing its importance in facilitating the sale.
4. Mediation: Consider engaging a third party to mediate the dispute, particularly if communication has broken down.
5. Legal Advice: If the freeholder’s refusal appears unreasonable, consult a solicitor. They may be able to issue a notice or apply pressure for compliance.
6. Tribunal Action: Leaseholders can apply to the First-tier Tribunal (Property Chamber) to resolve disputes involving uncooperative freeholders.

Preventing Future Issues

1. Professional Management: Employing a property management company like Fraser Bond can ensure smoother handling of administrative tasks, including LPE1 forms.
2. Clear Fee Structures: Agreeing upfront on reasonable fees for administrative tasks can prevent disputes.
3. Legal Safeguards in the Lease: Ensure lease agreements include clauses mandating freeholder cooperation in sales processes.

How Fraser Bond Can Help

Fraser Bond offers expert guidance and support to leaseholders facing uncooperative freeholders. Our services include:

• Dispute Resolution: We assist in mediating with freeholders or escalating disputes through legal channels.
• Property Management: Handling communication with freeholders to ensure timely document completion.
• Expert Advice: Providing tailored solutions to navigate the complexities of leasehold property sales.

Conclusion

A freeholder’s refusal to complete the LPE1 form can disrupt your property sale, but with the right approach, the issue can be resolved. From formal requests to legal action, there are several options available to leaseholders.

Fraser Bond is here to assist you with professional advice and services to ensure a seamless property transaction. Contact us today to learn more.