What is an LPE1 form?

The LPE1 is published by The Property Institute (TPI) — the professional body formed from the merger of ARMA and the IRPM — alongside its companion forms LPE2 (a plain-English summary for the buyer) and FME1 (for freehold management enquiries). It is not created by statute, but it has become the industry standard: when you buy or sell a leasehold flat in England or Wales, the seller's solicitor requests a completed LPE1 from whoever manages the building, and the answers feed directly into the buyer's due diligence.

What the LPE1 covers

The form runs to dozens of questions. The parts that matter most for service charges are:

• Service charge history — the last two to three years of demands, what is included, and whether the accounts have been certified.
• Arrears and balancing charges — whether the seller owes anything, and whether a balancing charge is expected once the year-end accounts are finalised.
• Reserve (sinking) funds — the current balance of any reserve fund and whether the flat's share transfers to the buyer.
• Major works — any planned or recent major works and Section 20 consultations, which can mean bills of thousands of pounds.
• Ground rent — the current ground rent and the review pattern in the lease.
• Insurance — who arranges buildings insurance, the premium, and whether any commission is taken.
• Disputes — any current or recent disputes with leaseholders, including First-tier Tribunal proceedings.
• Building safety — post-Grenfell questions on cladding, EWS1 forms and remediation costs.

Why the LPE1 matters to you

For a buyer, the LPE1 is the single most useful document for spotting a building with a service-charge problem before you exchange. A large planned major-works bill, a depleted reserve fund, or a live tribunal dispute are all things you would much rather know about now than discover in your first year of ownership.

For a seller, the fee your managing agent charges to complete the LPE1 — typically a few hundred pounds plus VAT — is part of your leasehold sale costs. Like any management charge, an unreasonable pack fee is not simply beyond challenge.

LPE1 vs LPE2

The two are often confused. The LPE1 is the detailed management form the agent completes. The LPE2 is a shorter summary written for the buyer, pulling out the headline figures — current service charge, ground rent, and any known issues. If you are buying, read both, but treat the LPE1 (and the underlying accounts) as the authoritative source.