Question 1

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Providing Information Q: One of our flats is being sold. We have been asked to provide a LPE1 and management pack. What should be included in the management pack? We are unsure of the correct answer to some questions on the LPE1 form regarding any requirements for a deed of covenant and licences to assign etc. In our particular circumstances we will need to check with our solicitor and no doubt we will have to pay a fee for his advice. Can we pass this on? What is a reasonable fee to charge for completing the LPE1 form and supplying copies of all the documents required? If we supply all the rest of the information to our solicitor, is it OK to ask our solicitor to complete and send off the form or must it come direct from the management company? The buyer's conveyancer has said they will not accept anything from a solicitor, it must come direct from us. Is this acceptable? We would prefer that our solicitor has checked all our answers are correct in our circumstances, because this is a legal enquiry. FPRA Chairman Bob Smytherman replies: The LPE1 form should be completed by the management company, however it is perfectly reasonable to refer the buyer’s solicitor to the landlord’s solicitor for answers about License to Assign & Deed of Covenant and any costs associated with this by your solicitor should be paid by the buyer’s solicitor, not the service charge. In terms of completing the form and associated charges, this really is a matter for you. In my own block I do all this by email and make no charge for time with completing. However, our solicitor and accountants do charge to provide copies of accounts, leases etc, and we pass these charges on, although we try and get them to bill the purchaser’s solicitor direct. It is perfectly reasonable and desirable that the information relating to the conveyance should be shared between solicitors, but the LPE1 should be sent by your management company. [Submitted July 2019]

Question 2

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Accepted Answer

Providing Information Q: One of our flats is being sold. We have been asked to provide a LPE1 and management pack. What should be included in the management pack? We are unsure of the correct answer to some questions on the LPE1 form regarding any requirements for a deed of covenant and licences to assign etc. In our particular circumstances we will need to check with our solicitor and no doubt we will have to pay a fee for his advice. Can we pass this on? What is a reasonable fee to charge for completing the LPE1 form and supplying copies of all the documents required? If we supply all the rest of the information to our solicitor, is it OK to ask our solicitor to complete and send off the form or must it come direct from the management company? The buyer's conveyancer has said they will not accept anything from a solicitor, it must come direct from us. Is this acceptable? We would prefer that our solicitor has checked all our answers are correct in our circumstances, because this is a legal enquiry. FPRA Chairman Bob Smytherman replies: The LPE1 form should be completed by the management company, however it is perfectly reasonable to refer the buyer’s solicitor to the landlord’s solicitor for answers about License to Assign & Deed of Covenant and any costs associated with this by your solicitor should be paid by the buyer’s solicitor, not the service charge. In terms of completing the form and associated charges, this really is a matter for you. In my own block I do all this by email and make no charge for time with completing. However, our solicitor and accountants do charge to provide copies of accounts, leases etc, and we pass these charges on, although we try and get them to bill the purchaser’s solicitor direct. It is perfectly reasonable and desirable that the information relating to the conveyance should be shared between solicitors, but the LPE1 should be sent by your management company. [Submitted July 2019]

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