Leasehold Information Pack
When you're buying a leasehold property, typically a flat or apartment, you'll encounter the term 'Leasehold Management Pack'.
Also known as a 'Freeholder Pack' or 'Leasehold Information Pack', it's a bundle of documents that provides insights into the property, the building it's part of, and the financial and legal obligations that come with it.
What is a Leasehold Information Pack?
Its fundamental purpose is to provide the buyer with insights into the property, the building it's part of, and the associated financial and legal obligations of leasehold ownership.
Purpose of the Leasehold Information Pack
This pack forms a part of the formal leasehold enquiries that a seller is legally obligated to provide to the buyer. It ensures transparency and equips the buyer's solicitor with all necessary information to conduct thorough due diligence. Specifically, it allows the buyer to understand:
- The financial liabilities associated with the property, such as ground rent and service charges.
- The management structure of the building and any ongoing or planned maintenance works.
- Compliance with various regulations (e.g., fire safety).
- Any historical disputes or legal matters related to the building or its management.
The LPE1 Form
Just after your solicitor is instructed and the TA7 (Leasehold Information Form) is received from the seller, the seller's solicitor will submit an LPE1 form to the Freeholder or Managing Agent.
The LPE1 (Leasehold Property Enquiries) form is a standardised questionnaire designed by the Law Society to gather all the necessary information for the Leasehold Information Pack efficiently.
You can see what questions are asked in an LPE1 form here: The Law Society Leasehold Property Enquiries Form LPE1.
It is often the case that sellers have some of the information provided within the leasehold information pack, such as ground rent receipts.
However, this will not suffice for the buyer, as they require more detailed information that you won't know of, such as future planned maintenance works and the financial health of the management company.
- RICS Valuers for the lease premium.
- Handling of the Section 42 Notice.
- Negotiations.
- The full Lease Extension process.
- Tribunal cases.
Who provides and pays for the Leasehold Management Pack?
Who Provides the Pack?
The Leasehold Information Pack is compiled and provided by the party responsible for managing the building and collecting ground rent and service charges.
This is typically one of the following:
- The Freeholder (Landlord): The legal owner of the land and building.
- The Managing Agent: A company appointed by the freeholder (or sometimes by the leaseholders themselves if they have a Right to Manage company) to handle the day-to-day management of the building.
- A Management Company: In some cases, especially with shared freehold properties, the leaseholders may collectively own a management company that is responsible for the building's upkeep.
It's important to note that sometimes, if different entities collect ground rent and service charges, you may need to obtain information (and pay fees) from more than one party.
Who Pays for the Management Pack?
In almost all standard leasehold property transactions, the responsibility for paying for the Leasehold Management Pack falls to the seller.
This is because the seller must provide this essential information to the buyer's solicitor to facilitate the sale.
- Seller's Obligation: While not strictly a legal requirement to provide it, buyers' solicitors will almost certainly demand this pack as part of their due diligence. Without it, the sale is highly unlikely to proceed, as crucial information about the property's liabilities and management would be missing.
- Upfront Fee: The freeholder or managing agent will charge a fee for compiling and providing the pack. This fee is paid upfront by the seller (or their solicitor on their behalf, from funds on account) before the information is released.
Sellers should inquire about the cost of the Leasehold Information Pack as early as possible in the selling process to avoid surprises and potential delays.
The cost is generally not standardised across all freeholders or managing agents and can vary significantly.
What's Included in a Leasehold Information Pack?
Your solicitor will review every document within this pack to advise you. Here's what you can typically expect to find:
- 1
Ground Rent Statement
This includes evidence of current ground rent paid and any ground rent currently due, along with the monthly or annual charge.
This information is crucial for proving that ground rent has been paid up to date and for calculating any apportionments due to or from you on completion.
- 2
Service Charge Statement
Similar to ground rent, this provides evidence of current service charges paid, any amounts currently due, and the monthly or annual charge.
This will also be used in an apportionment calculation at completion. Importantly, it includes information about any reserve funds (often referred to as 'sinking funds') held for future planned maintenance.
- 3
Major Works Plans
Details of planned future works, often known as major works, are important for any buyer.
These are repair or improvement projects to the building's structure or communal areas, the costs of which leaseholders are typically liable to pay a share.
The pack should outline what works are planned, their estimated costs, and how they will be funded, allowing you to understand your potential future financial liabilities.
- 4
Last 3 Years of Annual Accounts for Management Company
Providing the last three years of accounts for the management company (or freeholder) shows how the company has been managing the building's finances.
A buyer needs to know that communal areas are being managed properly with sufficient cash reserves to cover any unexpected events, such as major roof repairs or urgent structural issues.
- 5
Form EWS1 External Wall Fire Review
For leasehold blocks of flats over 18 meters (or sometimes shorter buildings with specific concerns), an EWS1 Form is a review of the external wall materials to confirm if they are combustible or not.
This document is vital for fire safety assessment and can impact mortgageability.
The Deed of Certificate is not included in the leasehold information pack
If the lease is eligible for leaseholder protections under the Building Safety Act, the seller will be required to provide a separate deed of certificate.
This document evidences that the lease is protected and that these protections will transfer to the new owner. Buyers must ensure this is provided if applicable.
- 6
Asbestos Survey
Asbestos-containing materials could be present in any building constructed before the year 2000. The asbestos survey within the pack will clarify if asbestos is present in communal areas and if any risk is posed to residents or maintenance workers.
- 7
Buildings Insurance
The Freeholder must ensure that adequate building insurance cover is in place for the entire structure. A copy of the current policy should be provided in the pack.
While the freeholder/managing agent organises the insurance, the leaseholders collectively pay for the cost, shared between them through the service charge.
- 8
Notice Fees, Deed of Covenant Fees & Other Freeholder Fees
The pack should detail any additional costs the buyer will have to pay the freeholder or managing agent after completion. These can include fees for formally notifying the freeholder of the change of ownership (notice fees) or for entering into a Deed of Covenant, which is a legal agreement to abide by the terms of the lease.
- 9
Disputes & Enfranchisement Information
Any current or historical leaseholder disputes related to the building, management, or service charges should be listed. Additionally, the pack should include information regarding any current action being taken in relation to enfranchisement (where leaseholders are buying the freehold), extension of the lease, or the formation of a Right to Manage company or a Right to Enfranchise company.
Leasehold Information Pack Cost and Timeframes
While the exact fee varies, you can generally expect a leasehold information pack cost to range from £100 to £500. Beyond this initial fee, knowing the leasehold management pack delay factors and how long a leasehold management pack is valid for is crucial for managing expectations and avoiding unnecessary hold-ups in your property transaction.
The typical Leasehold Information Pack cost
The leasehold information pack cost is unfortunately not standardised across England & Wales and can vary depending on the freeholder or managing agent.
There is normally a fee to pay the Freeholder or Managing Agent for compiling this information, and this is typically paid upfront before the information is released.
- Varying Fees: Costs can range from approximately £100 to £500, and sometimes even more for complex properties or unresponsive management companies.
- Multiple Packs: If ground rent and service charges are managed by different entities, you may need to obtain (and pay for) two separate packs, doubling this particular cost.
- Expedited Fees: Some freeholders or managing agents offer an expedited service for an additional fee, promising a quicker turnaround time for the pack.
It is always advisable for the seller's solicitor to confirm the exact cost with the freeholder or managing agent as early as possible.
Leasehold Management Pack timescale: how long does it take?
One of the most common causes of leasehold management pack delay in the conveyancing process is the time it takes for the freeholder or managing agent to compile and release this information.
Unlike other parts of the conveyancing process, there are no strict legal deadlines for freeholders to provide the pack, which can lead to frustration.
- Typical Duration: While some packs can be returned within a few days, the average timescale for receiving a Leasehold Management Pack is typically between 2 to 6 weeks.
- Factors Causing Delay: Delays can be caused by the managing agent's workload, the complexity of the building's management, incomplete records, or a lack of responsiveness.
- Proactive Approach: To minimise delay, the seller's solicitor should request and pay for the pack as soon as possible after being instructed, ideally when the property is first put on the market or an offer is accepted.
How long is a Leasehold Management Pack valid for?
Once obtained, the information within a Leasehold Management Pack is not indefinitely valid. While there's no fixed legal expiry date, solicitors and mortgage lenders typically consider the information to be current for a limited period, usually:
- 6 Months: Most solicitors and lenders will accept a pack that is up to six months old. Beyond this, they may request updated information or a completely new pack, especially if the transaction has been significantly delayed.
- Changes in Circumstances: Even within the six-month period, if there have been significant changes to the building's management, service charge budgets, or planned major works, updated information will likely be required.
This validity period is another reason why it's beneficial for sellers to order the pack efficiently and for transactions to proceed without undue delay, to avoid the need for costly and time-consuming re-requests.
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Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
