Updated versions of the LPE1, LPE2 and FME1 forms are now live with trade groups including ARLA Propertymark, the Association of Residential Managing Agents, the Institute of Residential Property Management, the Law Society and the Society of Licensed Conveyancers encouraging their members to use the updated versions from 11 January 2022. So how exactly have the forms changed?
All three forms now contain extra fields for:
- Asking administrators whether they can accept notice being served by email;
- Asking administrators whether they can accept payment via the banking system; and
- The Unique Property Reference Number (UPRN)
Of the changes, perhaps the most significant is the addition of UPRNs. A UPRN is a 12-digit number for each property. All things related to the property, from fixtures and fittings to surveys, can be attached to the UPRN, allowing the property to be identified and managed with unparalleled accuracy. Implemented effectively, a UPRN can offer greater levels of protection against consumer fraud, sub-standard property management and the ability to speed up all rental and purchasing transactions. For these reasons, and more, many in the industry have called for the increased usage of UPRNs.
LPE1 (Leasehold Property Enquiries) formThe latest changes mark the third iteration of the LPE1 form, with a range of questions related to whether or not pets are allowed and what the parking options are. The bulk of the changes relates to fire safety, with the form asking whether a fire safety or an external firewall assessment has taken place and whether there are urgent works pending as a result. This will form part of the industry's response to cladding issues highlighted by the Grenfell fire. By being more transparent at the marketing stage, it's hoped potential issues will be identified and rectified swiftly, allowing leaseholders to sell their properties with minimal fire risks without being slowed down by protracted administration.
LPE2 (Consumer Summary) formThe LPE2 form is intended to provide information about leasehold responsibilities and the costs involved in these. The latest update sets out the costs for the certificate of compliance for the first time and also alerts buyers of new properties within newly built developments that maintenance costs may go up substantially once the development is completed and the sale has taken place. The purpose of these changes is to try and avoid leaseholders being taken in by lower initial costs that seem too good to be true.
FME1 (Freehold Management Enquiries) form
The latest version of the FME1 form places more focus on the financial side, with questions related to contributions to the service charge, who deals with the deed of the covenant, and details about access to insurance. Again, given the issues around securing insurance without an EWS1 form, the updates are aimed at clarifying potential issues around high premiums and preventing unfair excess charges.
This Quarterly Legal & Compliance Updates 2021 Q4 webinar with Cassandra Zanelli, Founder & CEO of Property Management Legal Services discusses the new LPE1, LPE2 and FME1 forms plus other topics including Right of First Refusal (RFR), challenges with measures for going green and more.