Shared Freehold - LPE1 issue

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    Shared Freehold - LPE1 issue

    I'm currently in the process of selling a leasehold first floor flat where the freehold is shared with the leaseholder of the ground floor flat.

    I've accepted an offer on the flat and have reached the stage where the buyer has requested the LPE1 form be completed. My solicitor has advised me that both landlords would need to sign this form. I have completed the information and sent the LPE1 to the joint-freeholder requesting a signature, but they have now replied to both me and my solicitor to say they won't sign it as they've been advised they shouldn't sign it, and that it is unnecessary anyway. My solicitor has suggested the buyer would be somewhat suspicious if only I were to sign the form.

    My query is, is there anything that compels the joint-freeholder to be agreeable in this matter? As far as I can tell the LPE1 form doesn't contain anything provocative - both flats have ground rent and service charge of zero, building insurance is arranged on an annual basis with us both sharing the cost etc - so I'm at a loss as to what 'advice' they've received.

    #2
    The question is a broader one - because there is nothing to stop standalone freeholders from bullying or abusing lessees in this manner (and indeed artificially suppressing prices of leases which they then purchases themselves directly or via proxy). It is fraud, happens regularly, and legislators don't care.

    The failure to sign **is** however providing your buyer with useful information -- that they are purchasing a lease which involves a problematical freeholder.

    Comment


      #3
      It seems a somewhat short-sighted approach to take as the joint-freeholder must be aware that such a stance is extremely likely to be reciprocated at whatever point they decide to sell their interest in the property.

      Theoretically, we could now both be sitting on a worthless asset (from a sales perspective), unless there is legislation which compels a freeholder to co-operate.

      Comment


        #4
        LPE1 has no statutory significance and there is no law requiring the freeholder to even respond to it.

        Comment


          #5
          Originally posted by leaseholder64 View Post
          LPE1 has no statutory significance and there is no law requiring the freeholder to even respond to it.
          Thanks for clarifying.

          Does the same hold true of the TR1 form?

          Comment


            #6
            TR1 is a Land Registry form. As such I guess it is covered by tertiary legislation. However, I think that primary and secondary legislation only refers to the actual registration, not to the documents used to achieve it.

            It looks to me that failing to submit it within 2 months voids the transaction, but any action for failure of the seller to complete it would have to be in terms of a breach of their contract to sell. Generally both parties have an interest in the form's being completed promptly, whereas LPE1 is a chore for the freeholder.

            Please don't take this as gospel.

            Comment


              #7
              Originally posted by leaseholder64 View Post
              LPE1 has no statutory significance and there is no law requiring the freeholder to even respond to it.
              Indeed. But that doesn't help OP and rather compounds the problem. The buyer expects information. No sensible buyer would proceed without information from the horse's mouth. I would not.

              So information is required, but it is supplied at the whim of the horse (unless the lease obliges). The thing is a dog's breakfast.

              Comment


                #8
                If you are selling your 50% interest in the freehold title and held as "tenants in common" to your buyer , why do you need the signature of the other 50% owner whose interest is not being transferred to your buyer?

                Comment


                  #9
                  LPE1 relates to the leasehold and is an enquiry to the freeholder.

                  I don't believe it has been said that the freehold share is also being sold, although I thought that the situation generally was that both tenants in common must agree agree and the Land Registry entry will be flagged with a marker to that effect. As I understand it, it is actually a trust that owns the property, even if the forms allow the individual trustees to be listed , when there are not large numbers.

                  Comment

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