By Karabo Mclean-Salmon, Conveyancer, Penman Sedgwick LLP
The Building Safety Act 2022 came into force in June 2022 and has since led to the Fourth Edition of the Leasehold Property Enquiries form (LPE1) being introduced earlier this year.
The LPE1 is a questionnaire which is a standard part of the conveyancing process, designed to gather essential information about leasehold properties and enhance transparency and efficiency in leasehold property transactions. The form provides crucial information to prospective buyers (and lenders) to ensure their interests are protected. However, the latest edition goes a step further by addressing concerns related to building safety, particularly in the wake of high-profile incidents such as the Grenfell fire.
The new edition of the LPE1 now covers the following:
- Whether a Leaseholder Deed of Certificate has been served on the Landlord in relation to the sale of the property or remedial works required on the property.
- Whether a Landlord’s Certificate has been served. The Landlord’s Certificate confirms whether the landlord is responsible for any defects in the building, and provides information about contribution towards the cost of remediation.
- Whether there is any ongoing enforcement action against the Landlord. Landlords are required to declare any outstanding enforcement notices, following action brought by the Local Authority.
These new enquiries can affect all parties to a leasehold sale. There is an increased responsibility on landlords to provide accurate and comprehensive information related to building and fire safety measures. If a property requires significant remediation or improvement works to comply with building safety standards, it could potentially affect its saleability. Buyers (and lenders) may be more cautious or negotiate the price accordingly. Buyers of leasehold properties now have access to critical information about the safety aspects of the building.
Whether you are a landlord, prospective seller or purchaser of a leasehold property we can provide legal advice regarding the impact that the Building Safety Act will have on your transaction.
If you are looking for legal advice, we can help. Email firstname.lastname@example.org or call 01923 225 212