A recent case highlights the importance of accurate completion of the Leaseholder Property Enquiry (LPE) form, particularly regarding asbestos declarations. A leaseholder discovered asbestos in their flat after the freeholder had incorrectly stated on the LPE form that no asbestos was present, leading to financial and legal complications. This situation emphasises the need for landlords and agents to ensure full disclosure on property enquiries to avoid liability and disputes.

The Importance of the Leaseholder Property Enquiry (LPE) Form

The LPE form is a critical document used during the sale of leasehold properties in England and Wales. It provides essential information about the property’s condition and any potential liabilities, including the presence of hazardous materials such as asbestos. For landlords and managing agents, ensuring the accuracy of this form is vital to maintain transparency and protect all parties involved in a transaction.

In the case reported by Kevin, the freeholder completed the asbestos section of the LPE form incorrectly by stating “n/a” (not applicable), implying that asbestos was not present. This misrepresentation deprived the leaseholder of the opportunity to negotiate the purchase price or seek assurances regarding future costs related to asbestos management or removal.

Asbestos Risks and Financial Implications for Leaseholders

Asbestos is a known health hazard, and its presence in residential properties requires careful management. Survey and laboratory confirmation revealed asbestos in an archway for which the leaseholder is financially responsible. This discovery has direct financial implications, as the leaseholder may face ongoing costs for maintenance, repair, or removal of asbestos-containing materials.

In this instance, the leaseholder successfully negotiated a waiver of a charge related to painting over the asbestos. However, they would not have proceeded with the purchase without securing a £5,000 reduction to reflect the risk of future expenditure. The failure of the freeholder to disclose asbestos on the LPE form effectively denied the leaseholder the chance to factor these costs into the purchase price.

Legal and Compensation Considerations

Following the discovery, the leaseholder has raised a compensation claim of £4,500 against the freeholder for failing to complete the asbestos declaration accurately. This claim underscores the potential legal consequences for freeholders who provide incomplete or misleading information during property transactions.

For landlords and agents, this case serves as a reminder to diligently verify all information provided on property enquiry forms. Failure to do so can result in compensation claims, reputational damage, and strained relationships with leaseholders.

Best Practices for Landlords and Agents

To avoid similar issues, landlords and managing agents should:

• Ensure thorough surveys are conducted to identify any asbestos or other hazards before completing the LPE form.
• Provide clear and accurate information on all sections of the LPE, especially regarding health and safety risks.
• Communicate openly with prospective leaseholders about any known risks and associated costs.
• Seek legal advice if uncertain about disclosure obligations or potential liabilities.

By adopting these practices, landlords can reduce the risk of disputes and maintain compliance with legal requirements.

Looking Ahead: Support for Landlords

The Tenant and Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This resource will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to join the hub. This initiative aims to provide landlords with reliable access to professional services, helping them manage properties effectively and compliantly.