£650 fee for Management Pack / LPE1
Discussion
Hello,
Selling a leasehold flat which has a share of the freehold. The managing agent of the small block (six flats in total) is requesting £650 for supplying an LPE1 / Management Pack.
This seems like an incredibly bloated figure to us. Is it normal, and if not is there anything we can do about it?
Thank you
Selling a leasehold flat which has a share of the freehold. The managing agent of the small block (six flats in total) is requesting £650 for supplying an LPE1 / Management Pack.
This seems like an incredibly bloated figure to us. Is it normal, and if not is there anything we can do about it?
Thank you
Thank you for the replies.
Most fees during the conveyancing process seem to make sense or at least have a basis. This one however definitely feels like it’s been plucked out of the air and is over inflated as you are captive.
It probably needs a Government imposed national cap really because people must be getting ripped off left right and centre.
Most fees during the conveyancing process seem to make sense or at least have a basis. This one however definitely feels like it’s been plucked out of the air and is over inflated as you are captive.
It probably needs a Government imposed national cap really because people must be getting ripped off left right and centre.
I think it largely depends on the management company.
About 5 years ago, we were going through the process of buying an apartment and were quote £50 for a management pack.
As it happens the sale fell through and we never did have to pay this.
But moving on a year or so, we bought an apartment and they were self managed - we paid £0 for the management pack (in reality all we got is an LPE1).
And just recently one of the apartments in the block we are currently in sold, and I filled out the LPE1 myself (just like I did when I sold our previous apartment).
But I believe the proper way to do it, is to have a new lease drafted by a solicitor and the LPE1 form should be completed at the same time - and we all know what solicitors can change for pushing bits of paper around...
About 5 years ago, we were going through the process of buying an apartment and were quote £50 for a management pack.
As it happens the sale fell through and we never did have to pay this.
But moving on a year or so, we bought an apartment and they were self managed - we paid £0 for the management pack (in reality all we got is an LPE1).
And just recently one of the apartments in the block we are currently in sold, and I filled out the LPE1 myself (just like I did when I sold our previous apartment).
But I believe the proper way to do it, is to have a new lease drafted by a solicitor and the LPE1 form should be completed at the same time - and we all know what solicitors can change for pushing bits of paper around...
I sold a leasehold flat that also had a share of the freehold - in my case 120 flats made up the estate - which meant we owned our own management company as well - and yet they still managed to charge me £500+VAT for the Management pack / LPE1 when I came to sell. Mine was a London postcode.
So yes, it does appear that the charge can be as inflated as they like as there appears to be little you can do to challenge it.
So yes, it does appear that the charge can be as inflated as they like as there appears to be little you can do to challenge it.
I can (maybe) understand the charges for an LPE1 form when selling a flat but not when it's a standard house that just has ground rent payable.
I sold a BTL a few years ago and my solicitor recommended not bothering with one. The buyer was happy when i showed him the gerund rent statements were up to date so I managed to save myself £300
I sold a BTL a few years ago and my solicitor recommended not bothering with one. The buyer was happy when i showed him the gerund rent statements were up to date so I managed to save myself £300
We are with RMG and they charge either £100 for free hold or £500 for leasehold.
LPE1 is for the latter, so 650 sounds a bit expensive but not out of the ball park.
I know RMG "sell" their LPE1 as "ready to use" so it in theory will save solicitors costs in filling in the form, which is quite long.
But, I have no doubt most management companies have a completed form ready for each development and they just change the address.
LPE1 is for the latter, so 650 sounds a bit expensive but not out of the ball park.
I know RMG "sell" their LPE1 as "ready to use" so it in theory will save solicitors costs in filling in the form, which is quite long.
But, I have no doubt most management companies have a completed form ready for each development and they just change the address.
Thank you for the additional replies everyone.
It’s interesting hearing the different fee amounts. I spoke with our estate agent and they thought £654 was on the very high side and usually hear around the £400 mark. They also mentioned that they believe Government legislation is coming in regarding such management fees. It’s clear we will have to cover the amount but a universal cap or standardisation (much like MOT fees) is definitely the way forward.
It’s interesting hearing the different fee amounts. I spoke with our estate agent and they thought £654 was on the very high side and usually hear around the £400 mark. They also mentioned that they believe Government legislation is coming in regarding such management fees. It’s clear we will have to cover the amount but a universal cap or standardisation (much like MOT fees) is definitely the way forward.
When i sold a flat in 2014 the managing agent wanted 475 plus vat for the information pack.
I told him i wasnt happy with that and we eventually agreed 400 plus vat. With the passage of time id expect the fee to now be around 4-500 plus vat but it might be worth trying to negotiate a little.
I told him i wasnt happy with that and we eventually agreed 400 plus vat. With the passage of time id expect the fee to now be around 4-500 plus vat but it might be worth trying to negotiate a little.
Gassing Station | Finance | Top of Page | What's New | My Stuff