Help! Freeholder will not fill out LPE1 form

Help! Freeholder will not fill out LPE1 form

0:02 AM, 27th June 2023, About A year ago 8

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Hello, I would appreciate some advice on the process of going to a first-tier tribunal and how to keep costs down as I am already trying to sell the flat to a cash buyer company at a loss. I would really rather not, but due to the lack of management company and cooperation from the freeholders the local estate agents and auctions won’t list my flat.

Despite attempts by myself and a conveyancer the freeholder of my 990-year lease flat will not fill out the forms requested. The flat is in a small block of seven and the freeholders are siblings. Throughout the 14 years I have owned the flat they have not employed a management company and now decided to do some work on the block.

They have given me bank details and asked for payment/service charges without any schedule of work or evidence of my portion of charges are 1/7 of the total building charges. I agreed to contribute when all the evidence is legally documented and provided to me. I am concerned that I will sink more money into a flat that has now become an unsellable flat because the freeholders won’t complete the LPE1 forms. They don’t want to buy my flat in fact they are trying to sell their flats.

I am going to lose the buyer and the conveyancer has suggested I now find a litigation lawyer as they have a thick file of over 6 months of demanding letters and there is nothing further they can do.

In order to try a save some money I have drafted a letter stating that if they do not provide the information within 14 days. I will be taking them to the tribunal.

Now I need help with the next steps, please.

Thank you,

Stephen


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David Breare

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7:33 AM, 28th June 2023, About A year ago

Unfortunately the freeholders are under no legal obligation to provide LPE1 or responses to sales enquiries. It may be sensible for the block to consider undertaking the Right to Manage process under the Commonhold and Leasehold Reform Act 2002. If the following criteria are met, it is a no fault process and you could collectively obtain the RTM in around 5 months after which the RTM can respond to any LPE1 / Sales enquiries.

At least 50% membership so at least 4 of the 7 flats would need to agree to membership prior to issuance of the claim
At least 2/3rds of the flats in the block on long leases (greater than 21 years at the time of issue)
No greater than 25% of the floor area given over to commercial use.

** I am a director of a company which assists with the RTM process but there are other providers out there. I would strongly suggest using a professional provider as there are nuances to the process and precedent cases that should be taken into account.

Judith Wordsworth

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9:04 AM, 28th June 2023, About A year ago

I think you have posted before.

If the working the property costs more than £250 per flat the freeholders need to issue s20 notices for the works. If the works are split eg roofing works, redecoration works, drainage works EACH over £250 per flat needs a s20.

Have a read of these
https://www.gov.uk/housing-tribunals/apply-to-the-tribunal

https://www.gov.uk/courts-tribunals/first-tier-tribunal-property-chamber

https://www.judiciary.uk/courts-and-tribunals/tribunals/first-tier-tribunal/property-chamber/

https://www.lease-advice.org/advice-guide/application-first-tier-tribunal-property-chamber/

https://www.lease-assn.org/leasehold-information-sheets/applying-to-a-first-tier-tribunal.php

Puzzler

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9:22 AM, 28th June 2023, About A year ago

You need a specialist solicitor and to engage the other owners who will also be in the same situation

I guess the freeholder is an individual?

Freda Blogs

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9:42 AM, 28th June 2023, About A year ago

In your shoes, I would simply park trying to sell the flat for the time being and sort out this situation, and would go straight to making a Tribunal application, which should focus the minds of the freeholders more than all of your letters to date. Doing this should give you more control over things going forward.
If you google First Tier Tribunal you will find the one geographically suited to your property and give them a call. You will probably be put through to a clerk (who cannot give you legal advice) but will be able to offer you insight as to the process and send you some preliminary info.
The government website https://www.lease-advice.org/ can also give you some pointers, but though helpful, the ‘advisers’ can only offer limited information and as far as I know have no direct experience themselves, so will only be reading from notes.
Alternatively find a specialist property litigator, which will incur fees, but s/he will be well acquainted with such matters and remove the stress from your shoulders as they know the processes and will be emotionally detached from the situation. Having a solicitor will also send a powerful message to the freeholders – even if he/she sends them just one letter pre-Tribunal application, that may elicit a response.
From your post I wonder whether the FHs have observed the legal requirements regarding works etc and managing the building according to the regs, and will realise pretty quickly they are in trouble, and you may be able to agree a settlement with them without the necessity of going to Tribunal. If they are not managing the building properly, that could be another can of worms, but you can only take things one step at a time.

Puzzler

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9:47 AM, 28th June 2023, About A year ago

If the freeholders also want to sell they are going to need to sort this out

SK

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12:47 PM, 28th June 2023, About A year ago

Thank you all for your invaluable advice.

The leasehold advisory service informed that the FTT will not be able to make them complete the LPE1 as it is not mandatory but no one will purchase it without this paperwork.
The freeholders are siblings and own all of the other flats.
They have now decided to 'manage' the block and have set up a limited company. As they are trying to sell their flats . They have said that if I back pay a year's service charge of 1 year which is £1500 and 6 months for this year they will fill out the LPE1 form.

I did have a cash buyer company offering less than I paid 14 years ago, which is just criminal. So in effect, I will be paying even more money just to make a loss.
I did say I really don't have the funds at this time but their response was 'then we cannot move forward.'
I think I might just have to take the hit in order to just move on.
If I get the LPE1 form filled completed. Do you think going to an auction might achieve a higher price? It is currently tenanted I could increase the rent as with all the interest rate hikes and the service charges etc I am making a loss. The market rental value is more than I am achieving but I really can't afford to have any void periods at this time.
So should I pay and get the paperwork and try and find another way to sell the flat? Again all your suggestions and advice are so greatly appreciated.
SK

Puzzler

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11:28 AM, 29th June 2023, About A year ago

They must tell you what the charges are for and request them in accordance with procedure. Sounds like they need legal advice. Have you paid nothing before? what about building insurance?

Mervin SX

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7:19 AM, 1st July 2023, About A year ago

Good morning Stephen,
I am sorry to hear of your situation. You don't always need the freeholder to fill in an LPE1 form. But you may also not have a lot of information if there are outstanding disputes.
Reading between the lines, it appears that you may not have paid your Service Charge on time or they are in dispute. This is perhaps why the freeholder isn't playing ball with you!
If your lease require a 'license to assign' (permission to sell) or if your land registry title has a restriction, then you are going to find it even more difficult to sell your apartment without the freeholder's involvement.
There are quite a few things you could explore - but the first mess to resolve will be to come to some sort of agreement with the freeholder regarding outstanding charges.
I own a block management company and we are usually pretty good at resolving disputes between freeholders and leaseholders. If you are based in England, drop me an email and I may be able to help you - property.management@xavi.co.uk.
All the best,
Mervin.

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