The sale of a property situated within a managed building or on a managed estate necessitates the provision of specific documentation, commonly referred to as a sales pack. For leasehold properties, this typically involves an LPE1 (Leasehold Property Enquiries) form, while freehold properties subject to managed estate conditions will require an FME1 (Freehold Management Enquiries) form.
These documents are fundamental to the conveyancing process, furnishing prospective purchasers with a detailed overview of the property’s financial commitments, the prevailing management framework, and any anticipated significant works. Diligent and accurate preparation of these packs is paramount to facilitating an efficient sales transaction and mitigating potential complications.
Defining LPE1 and FME1 Sales Packs
LPE1 (Leasehold Property Enquiries Form): The LPE1 form is the industry-standard document utilised in the sale of leasehold properties, such as apartments or maisonettes. It is completed on behalf of the landlord, the appointed managing agent, or the residents’ management company. The LPE1 form provides comprehensive information regarding:
- Ground Rent: The annual sum payable to the freeholder.
- Service Charges: Financial contributions allocated towards the maintenance and upkeep of communal areas, buildings insurance, repairs, and general property management. This typically includes historical accounts (usually for the preceding three years) and projected future charges.
- Buildings Insurance: Particulars of the current insurance policy and the extent of its coverage.
- Major Works: Details concerning any planned substantial repairs or improvement projects (e.g., roof renewal, lift refurbishment) and the associated funding arrangements.
- Management Particulars: Contact information for the managing agent and/or the freeholder.
- Lease Compliance: Confirmation of adherence to the covenants stipulated within the lease agreement.
- Disputes and Enfranchisement: Information pertaining to any ongoing disputes or collective enfranchisement actions undertaken by leaseholders.
- Building Safety: Following the enactment of the Building Safety Act 2022, the LPE1 incorporates critical information related to fire safety, including External Wall System (EWS1) forms and fire risk assessments, particularly for multi-storey residential buildings.
FME1 (Freehold Management Enquiries Form): This form is pertinent to freehold properties that form part of a managed estate. Although the property is owned outright, the owner is typically liable for contributions towards the maintenance of shared amenities, such as private access roads, communal gardens, recreational areas, or shared drainage systems. The FME1 form offers transparency on:
- Estate Rent Charges/Service Charges: Fees payable to the management company for the maintenance of communal areas and the provision of shared services.
- Management Company Particulars: Information regarding the entity responsible for the management of the estate.
- Planned Works: Details of any forthcoming major projects scheduled for the estate.
- Covenants and Restrictions: Any regulations or obligations applicable to property owners within the estate.
- Accounts: Financial statements for the management company (generally covering the last three years).
- Insurance: Details of any relevant communal insurance policies.
The Critical Importance of a Comprehensive and Accurate Sales Pack
A purchaser’s solicitor will conduct a thorough due diligence review of these sales packs. Any omissions, inaccuracies, or identified areas of concern can precipitate a number of adverse consequences:
- Significant Delays: The conveyancing process may be impeded while clarifications are sought and additional information is procured.
- Purchaser Apprehension: Incomplete or ambiguous information can engender uncertainty in prospective buyers, potentially leading to the withdrawal of their offer.
- Mortgage Lender Complications: Mortgage providers frequently require a satisfactory sales pack prior to the release of funds. Deficiencies in the pack can compromise the buyer’s mortgage application.
- Price Re-negotiations: Should unforeseen future liabilities or burdensome obligations be identified late in the process, purchasers may seek to renegotiate the agreed sale price.
An inadequately prepared sales pack can introduce considerable friction into the transaction, causing frustration for all parties involved.
Essential Requirements for an LPE1 or FME1 Sales Pack:
To promote an efficient transaction, the sales pack must be:
- Complete: All sections of the relevant form (LPE1 or FME1) must be comprehensively addressed. Omissions should only occur where genuinely not applicable.
- Accurate: All financial data, dates, and pertinent details must be correct and current. Figures relating to service charges, ground rent, and any arrears or sinking fund balances must be meticulously verified.
- Supported by Appropriate Documentation: The sales pack extends beyond the form itself. It must be accompanied by copies of pertinent supporting documents, including but not limited to:
- The current buildings insurance schedule and policy document.
- Service charge accounts for the preceding three years (and, where available, budgets for the current financial year).
- Recent demands for ground rent and service charges.
- The Memorandum and Articles of Association for the Management Company.
- A current Fire Risk Assessment (FRA) for the building (particularly for LPE1 forms).
- An Asbestos Management Survey (if applicable to communal areas).
- An EWS1 form (if applicable, for buildings with potential external wall system concerns).
- Details of any impending major works, including any Section 20 notices that have been served.
- Minutes of recent Annual General Meetings (AGMs) or residents’ management meetings (if available and relevant).
- Provided in a Timely Manner: It is advisable to request the sales pack from the managing agent or freeholder as soon as the decision to sell the property is made. The compilation of these packs can take a number of weeks; therefore, proactive engagement is crucial.
Facilitating Efficient Property Transactions: Levels Property Management
Navigating the intricacies of LPE1 and FME1 sales packs can present a considerable challenge for vendors. Ensuring the accurate collation, meticulous presentation, and prompt delivery of all requisite information is fundamental to a streamlined property transaction.
At Levels Property Management, we possess a comprehensive understanding of the pivotal role these sales packs fulfil. We are committed to providing clear and comprehensive sales packs designed to support efficient property transactions. Our proficient team meticulously compiles all necessary information, ensuring accuracy and rigorous attention to detail. We operate with diligence to ensure these packs are delivered punctually, thereby minimising potential delays and enabling clients to proceed with their sale with confidence.
By entrusting Levels Property Management with the preparation of your sales pack, you can be assured that this critical component of your property sale will be managed with professionalism and efficiency, contributing to a successful completion.
Our Pricing Structure:
Replies to standard LPE1/FME1 enquiries are charged as follows:
| Turnaround Time | Price |
|---|---|
| 7-10 days | £245 plus VAT |
| 5 days | £545 plus VAT |
| 48 hours | £895 plus VAT |
Additional enquiries are charged at £250 plus VAT per 5 queries. Replies to enquiries are valid for 3 months. After this period, a new enquiry would be payable in full.
If you are selling your property within one of our managed buildings or estates, please login to your customer portal and complete the enquiry form.
