Have the new property leasehold forms achieved their aims?
With the new property leasehold forms LPE1 and LPE2 available, it is thought that enhanced protection for potential property buyers is prevalent
Earlier this month, The Law Society, in collaboration with and property trade associations from the legal sector, have released alleged ‘new and improved’ property leasehold forms. Some of the associations include the British Property Federation, the Royal Institution of Chartered Surveyors and the Association of Residential Managing Agents. The question is: have the amendments been successful?
The new edition of the LPE1 form that was released on 1st October 2015, along with the introduction of a buyers leasehold information summary (LPE2), was set to include the following amendments: enhanced wording and definitions, inclusion of new questions that aim to abolish the need for extra enquiries, and amendments that reflect changes in the Association of British Insurer agreements with lenders. Have these changes had a significant impact?
The LPE1 changes and addition of the new LPE2 form were founded to give potential property buyers all the information they should require to successfully purchase their desired property, and to rid of excess paperwork for solicitors along with making such processes less complicated. The new forms are constructed on the basis that they capture information about properties held by landlords, management companies and managing agents. Capturing an array of extensive and specific information such as ground rent, insurance and service charges, helps to combat unnecessary questioning and ensures the purchaser is well informed.
Recent reports have concluded that the new forms have been very well received by property professionals across the board, and its aims have been delivered respectively. It is also reported that immense detail has gone into the forms in combatting numerous problems; with a specific section on Japanese Knotweed and how to deal with such an issue.
The LPE2 that was released alongside the new property leasehold form, was constructed to bolster the amount of information that is handed out to buyers of leasehold property in regards to financial obligations. With many property buyers reportedly falling into financial despair due to being unaware of payment obligations, the new forms are thought to have alleviated this problem significantly.
With many industrial bodies endorsing the forms, John Smithers, President of the Law Society, believed that this would significantly impact the reach of the document. Smithers then went on to say how buyers have previously not been held in high regard in terms of financial awareness, and the new forms, in particular the LPE2, will amend this problem. With the response given by legal professionals, has this worked?
With the reception that the new forms have received already, the forms have seemingly been successful in their aims. Would you agree?