What delays leasehold conveyancing transactions?

Leasehold properties account for around one in five homes in England. Government figures estimate 4.9 million leasehold properties in 2024–25, including about 3.4 million flats and 1.5 million houses. Leasehold ownership is particularly prevalent in London, where 39% of homes are leasehold.

With millions of leasehold properties across the country, understanding the additional legal and administrative requirements involved in buying or selling one is important.

Leasehold transactions often take longer than freehold purchases and sales. While many delays are unavoidable, others can be identified and addressed early if the parties know what to look for.

Unfortunately, buyers and sellers frequently discover leasehold issues halfway through a transaction, by which point mortgage offers may be close to expiry and moving dates may already have been discussed.

Understanding the most common causes of delay can help buyers and sellers manage expectations and reduce the risk of unnecessary disruption.

If you are buying or selling a leasehold property, contact our solicitors for advice on identifying potential issues and avoiding unnecessary delays.

Why do leasehold transactions take longer?

Unlike most freehold transactions, leasehold sales involve additional parties and documentation. As well as the buyer and seller, transactions will often involve:

• The freeholder.
• A management company.
• Managing agents.
• Mortgage lenders.

Each party may need to provide information, approve documents or respond to enquiries before the transaction can proceed.

Some freehold transactions can also involve a third party, for example where an FME1 form and supporting information are required. However, the additional parties and documentation commonly involved in leasehold transactions can add time to the conveyancing process.

What is a management pack and why does it matter?

One of the most common causes of delay is obtaining the leasehold management information pack, often called an LPE1 pack.

The LPE1 (Leasehold Property Enquiries) form is a standard questionnaire used in leasehold transactions. It provides the buyer's solicitor with important information about how the property and building are managed and is usually completed by the landlord or managing agent.

Where the property is sold with a share of the freehold, the form may instead need to be completed by the management company, where one is appointed, or by another freeholder. The seller cannot complete the form themselves due to the potential conflict of interest.

The completed LPE1 is usually provided alongside supporting documents relating to the management of the property, which is why it is commonly referred to as an LPE1 pack or management pack.

This contains important information about the building and management arrangements, including:

• Service charge information.
• Ground rent information.
• Contact details for relevant parties.
• Any fees that may be required, such as notice of assignment fees.
• Procedures for obtaining a share certificate, if applicable.
• Buildings insurance details.
• Planned major works and whether Section 20 notices have been issued.
• Whether a leaseholder’s deed of certificate has been served, if applicable.
• Whether a landlord’s certificate has been served, if applicable.
• Whether the building is up to date with relevant risk assessments.
• Any requirements or restrictions in the lease, such as those relating to keeping pets.
• Details of any disputes, breaches or arrears
• Information about reserve or sinking funds.

Managing agents, management companies, and landlords often charge a fee to produce the pack, and timescales can vary significantly.

Transactions are frequently delayed because the pack is requested late in the process, takes several weeks to arrive, or requires additional information after it has been received.

Can service charges or disputes cause delays?

Any disputes or disagreements that come to light during a conveyancing transaction have the potential to cause delays, as buyers and lenders will often want these issues resolved or clarified before proceeding.

Where major expenditure is planned, buyers may also seek further information about likely future costs. This can lead to further negotiations between the buyer and seller.

Service charge or ground rent arrears are usually dealt with during the course of the transaction and do not typically cause significant issues. It is standard procedure for any arrears to be cleared on completion, with an apportionment statement usually issued to the buyer’s solicitor setting out the amounts for which the seller and buyer are responsible.

Alternatively, the parties may agree for an allowance to be made or for a retention to be held.

What happens if landlord consent is required?

Some leases require the buyer to obtain the landlord's consent before the transaction can proceed.

This may involve a licence to assign, a deed of covenant, notice of transfer requirements or references being provided for the buyer.

Where these requirements are identified late in the transaction, delays can quickly arise while documentation is prepared, approvals are obtained, and documents are sent to third parties for signature and return.

Can mortgage lenders cause delays?

Exact requirements vary between mortgage lenders, but these must be satisfied before a lender will proceed with the mortgage offer. Lenders may raise additional enquiries regarding lease length, lease clauses, service charges, ground rent, potential building safety issues, EWS1 requirements (where applicable) or management arrangements.

Where a lease has a relatively short unexpired term, lenders may also require further information regarding lease extension options or future saleability. A lender may require a lease extension to be completed and, if this cannot be agreed, may refuse to lend or withdraw its offer.

Whether or not they are obtaining a mortgage, buyers may wish to consider whether a lease extension should be pursued as part of the transaction. Where a mortgage is required, buyers should establish at an early stage whether a lease extension is a condition of the mortgage offer to reduce the risk of unnecessary delays or the transaction falling through.

Obtaining this information early can help reduce the risk of last-minute issues arising shortly before exchange or completion.

Can missing freeholders or management companies cause problems?

Yes. Transactions can be significantly delayed when freeholders, management companies, or managing agents are unresponsive or difficult to contact.

Missing documentation, incomplete records, or uncertainty about responsibility for building management can create additional enquiries and delay progress.

These issues are often outside buyers' and sellers' control and can take time to resolve.

What legal work is involved?

Advice on a leasehold transaction may involve:

• Reviewing the lease documentation.
• Reviewing leasehold and freehold title registers and plans.
• Reviewing any other relevant Land Registry documents.
• Reviewing the protocol forms completed by the seller.
• Reviewing the management information pack, including the LPE1 and any associated documents.
• Raising enquiries with the seller, managing agents and freeholder, and ensuring replies are satisfactory.
• Identifying any landlord consents or additional documentation required.
• Advising on leasehold obligations and liabilities.

Issues that commonly delay leasehold conveyancing transactions

Leasehold conveyancing transactions can be delayed by a number of issues that do not usually arise with freehold properties. One of the most common causes of delay is obtaining information and documents from third parties. Landlords, managing agents, management companies and other freeholders can sometimes take several weeks to provide the necessary paperwork, which can significantly delay the transaction.

Additional complications can arise when selling a leasehold property with a share of the freehold. If the freehold is registered in the names of individuals rather than a management company, you may need ID verification and signed transfer deeds from all freeholders named on the register.

This can cause significant delays where several individuals are involved, particularly if documentation and identification are required from each freeholder or their contact details are not readily available.

How can delays be reduced?

While leasehold transactions are often more complex than freehold transactions, early preparation can make a significant difference.

Sellers should consider obtaining management information at an early stage, while buyers should ensure that lease length, service charges and management arrangements are investigated as soon as possible.

Identifying potential issues early often allows them to be resolved before they affect exchange or completion dates.

Guidance from our leasehold conveyancing solicitors

Leasehold transactions involve issues which usually do not arise in freehold conveyancing and often require close coordination between buyers, sellers, lenders, freeholders and managing agents.

Samantha Sperring, associate licensed conveyancer, says:

“Some of the main delays in leasehold transactions are caused by matters outside the conveyancer’s control. Obtaining management information and further replies to enquiries from managing agents or landlords can add weeks to a transaction, particularly where multiple parties are involved. Landlord consents can also create additional delays, whether this involves a licence to assign, consent for alterations or compliance with title restrictions. These processes can require separate documentation and additional fees.

“Engaging with managing agents and landlords early can help keep the transaction moving, while reviewing the lease at an early stage can help identify requirements or potential issues before they cause delays later in the transaction.”

Our residential property department regularly advises clients on leasehold purchases and sales and can help identify potential issues early to minimise delays wherever possible.

If you are buying or selling a leasehold property, we can help guide you through the process and keep your transaction progressing as smoothly as possible.