Author: numan
What is a Fire Risk Assessment (FRA)?
A Fire Risk Assessment (FRA) is a legal requirement for most residential buildings, especially blocks of flats and converted houses containing multiple dwellings. It involves a structured evaluation of the fire risks in the property, with the aim of identifying hazards and ensuring that appropriate fire safety measures are in place.
Who is responsible for the FRA?
The “responsible person” is usually:
- The freeholder, or
- A management company or Right to Manage company, or
- A letting agent acting on behalf of the landlord.
They must ensure that the building has a suitable and sufficient fire risk assessment carried out regularly — typically by a qualified fire safety professional.
What does an FRA include?
A fire risk assessment typically covers:
- Escape routes and whether they are clear and properly marked.
- Fire doors and alarms – whether they are installed, working, and compliant.
- Cladding and external walls – whether materials pose a fire risk.
- Compartmentation – whether the building structure helps contain fire.
- Signage and emergency lighting.
- Firefighting equipment and sprinkler systems (if applicable).
- Any recommendations for remediation or ongoing monitoring.
The findings will be summarised in a written report, which should be made available to leaseholders and buyers.
Why it matters when buying at auction
- An FRA is crucial for safety and legal compliance — especially in older or high-rise buildings.
- Some lenders may ask for a copy as part of their mortgage requirements.
- If the FRA identifies serious fire safety concerns, the building may require expensive works — and leaseholders usually pay for these via service charges.
- A missing or outdated FRA may suggest that the building is not being properly managed.
Auction legal packs often do not include an FRA. As a result, you may be buying into a block where:
- The current safety status is unclear, and
- You may later receive costly demands for compliance works.
Summary
A Fire Risk Assessment is essential for ensuring that a block of flats meets safety standards and complies with the law. If you’re buying at auction and an FRA is not provided, you are accepting the fire safety risk — which could result in serious costs and resale problems. At Versus Law, we advise all auction buyers to confirm whether an FRA is available before bidding, particularly for high-rise or converted buildings.
What is the Building Safety Act and EWS1 form?
In response to the Grenfell Tower tragedy, the UK government introduced a range of new laws and safety requirements to protect residents in high-rise and high-risk residential buildings. Two key elements buyers should be aware of are the Building Safety Act 2022 and the EWS1 form (External Wall System certificate).
The Building Safety Act 2022
The Act introduced wide-ranging reforms to building safety regulations in England and Wales. Key features include:
- Applies to buildings over 11 metres or 5 storeys (reduced from 18m in earlier guidance).
- Introduces legal obligations for building owners to assess, manage, and report on building safety risks.
- Creates new protections for leaseholders from unfair cladding remediation costs.
- Establishes a Building Safety Regulator with enforcement powers.
- Requires a Golden Thread of Information — a comprehensive, digital record of the building’s design, construction, and safety management.
Under the Act, leaseholders are protected from certain historical building safety costs. However, this protection only applies if the building and leaseholder meet the strict legal conditions.
What is an EWS1 form?
An EWS1 (External Wall System) form is a fire safety assessment for the external walls and cladding of a building.
- It must be completed by a qualified fire engineer.
- It determines whether the external wall materials (such as cladding or insulation) pose a fire risk.
- It is used by mortgage lenders to assess whether the property is safe and mortgageable.
If the building receives a ‘B2’ rating, it means remedial work is required. A rating of ‘A1’, ‘A2’, or ‘B1’ means the building is considered safe or has acceptable mitigation measures.
Auction sale risks
In auction purchases:
- The EWS1 form may not be included in the legal pack.
- The seller may not disclose fire safety issues or confirm whether works are planned.
- The buyer may inherit the risk of future costs or resale difficulties.
- If the flat is in a building over 11 metres and there is no EWS1, you may:
- Struggle to get a mortgage, or be limited to specialist lenders.
- Be unable to resell the flat until fire safety status is confirmed.
- Face demands for service charge increases or cladding contributions if the property is not exempt under the Act.
Summary
The Building Safety Act and EWS1 form are now central to buying flats in high-rise buildings. If you’re purchasing at auction and no EWS1 form or fire safety details are included, you are accepting a potentially significant risk. Always consult a solicitor (such as our team at Versus Law) before bidding on such properties — we are experienced in reviewing building safety documentation and advising on risk exposure.
What is an LPE1 form and why haven’t I seen one?
An LPE1 form — short for Leasehold Property Enquiries Form 1 — is a standardised questionnaire completed by the landlord, freeholder, or managing agent when a leasehold property is being sold. It is designed to provide essential information to the buyer about how the building is managed and what charges or restrictions apply.
What does the LPE1 include?
The LPE1 form covers:
- Who manages the property – including contact details for the freeholder or managing agent.
- Service charges – how much is paid, what it covers, and any outstanding arrears.
- Ground rent – annual amount, when it is due, and whether it increases.
- Major works – planned or proposed works that may result in high costs for leaseholders.
- Insurance arrangements – including whether the building is insured and who is responsible.
- Notices and consents – such as requirements for subletting, alterations, or pets.
This form is vital in a standard transaction, as it gives the buyer clarity about financial and practical commitments under the lease.
Why haven’t you seen one?
In auction sales, the LPE1 form is often not included in the legal pack. This is usually because:
- The seller may not request it — often due to time or cost.
- Managing agents may charge a high fee (commonly £300–£600+ VAT) and take several weeks to complete it.
- Auction sellers typically want to avoid delays, so they proceed without this documentation.
- The sale is “as seen” — sellers are not obliged to provide full pre-contract enquiries.
Why this matters
Buying a leasehold flat without an LPE1 means you may have no reliable information about:
- How much you’ll pay in service charges.
- Whether there are outstanding arrears or disputes.
- Whether there are upcoming works or repair bills.
- How the building is insured and who to contact.
You may find out only after completion that you owe hundreds or even thousands of pounds in unpaid charges — or that the building has structural issues or cladding concerns.
Summary
The LPE1 form is an essential part of understanding a leasehold property — but it is commonly missing in auction sales. You are expected to buy at your own risk, without full information. At Versus Law, we always highlight when this information is absent and can assist you in requesting it post-completion if needed.
Can I extend the lease and how?
Yes — you can extend the lease on a leasehold property. Importantly, as of 31 January 2025, the requirement to have owned the property for two years before initiating a statutory lease extension has been abolished under the Leasehold and Freehold Reform Act 2024.
Two routes to extend a lease
1. Statutory lease extension (formal process)
- You can now initiate this process immediately upon acquiring the property, without the previous two-year ownership requirement.
- The extension provides an additional 90 years on top of the existing term.
- The ground rent is reduced to a peppercorn (effectively zero).
2. Informal lease extension (negotiated approach)
- This can be done at any time and may be quicker.
- However, terms are not guaranteed and may include:
- Higher premiums.
- Continuation of ground rent.
- Less favorable terms overall.
How we can help
At Versus Law, we specialize in lease extensions and can assist you with:
- Evaluating the best route for your circumstances.
- Serving statutory notices and managing the formal process.
- Negotiating favorable terms in informal extensions.
- Liaising with freeholders and managing agents.
Summary
With the abolition of the two-year ownership rule, extending your lease has become more accessible. Whether you choose the statutory route or negotiate informally, it’s crucial to understand the implications and ensure the terms are favorable. Our team at Versus Law is here to guide you through every step of the process.
What does ‘short lease’ mean and why does it matter?
A “short lease” typically refers to a leasehold property where the unexpired term of the lease is less than 80 years. This is a critical threshold, as it affects not only the value of the property, but also your ability to secure a mortgage, and the cost of extending the lease in the future.
Why does the lease term matter?
Leasehold property is a wasting asset — as the lease term gets shorter, the property becomes less valuable. A lease that falls below 80 years:
- Begins to lose value more quickly.
- Becomes more difficult to sell.
- May be unacceptable to many mortgage lenders.
- Triggers a “marriage value” cost when extending (explained below).
Mortgage lenders typically have minimum lease requirements — often 70–85 years depending on their policy. If the lease term falls below their cut-off point, they may:
- Refuse to lend at all.
- Reduce the loan-to-value (LTV) they will offer.
- Require that the lease be extended before completion — which is rarely possible in auction timescales.
What is marriage value?
If you extend a lease after it falls below 80 years, you must pay an additional cost called marriage value. This represents the increase in the property’s value once the lease is extended — and half of this uplift must be paid to the freeholder by law.
This makes lease extensions significantly more expensive once the lease term drops below the 80-year mark.
Why is this especially important in auction sales?
- Auction legal packs may not include the lease term or refer only vaguely to it.
- You may not have time to obtain a lease extension or negotiate with the freeholder before bidding.
- If you buy a short lease flat, you are accepting reduced value, mortgage restrictions, and higher extension costs.
Short lease properties often appear in auctions because they are hard to sell on the open market — and may not be mortgageable in their current state.
Summary
Buying a flat with a short lease can expose you to major risks — including limited mortgage options, high extension costs, and difficulty reselling. Always confirm the lease length before bidding and understand the financial implications if the lease has less than 80 years remaining.
Am I responsible for unpaid service charge and ground rent?
Buying a leasehold flat at auction is very different from buying a freehold house. With leasehold, you are not buying the building itself, but rather a legal right to occupy the flat for a fixed number of years. The flat is part of a larger building which is often owned and managed by a freeholder (landlord) or management company.
What are the implications?
As a leaseholder, you are typically responsible for:
- Ground rent: An annual payment to the freeholder.
- Service charge: Your share of the costs of maintaining the building, communal areas, and facilities.
- Compliance with lease terms: Including restrictions on subletting, alterations, or use.
- Repairs inside your flat, but not to the structure or communal areas.
The freeholder or managing agent is responsible for the overall management of the building, including arranging buildings insurance, structural repairs, and maintenance of shared areas.
What are the risks when buying at auction?
- The full lease document is often not provided in the legal pack.
- The seller may not supply an LPE1 form or management pack, so you may be buying without knowing:
- The length of the lease.
- The amount of ground rent or service charges.
- Whether major works are planned.
- Whether there are arrears or disputes with the management company.
This means you could be committing to a flat with high costs or legal restrictions without being fully informed.
Summary
Leasehold properties can be complex and expensive to manage. If you’re buying a flat at auction, you need to understand that you are entering into a long-term legal relationship with a freeholder and may face significant financial liabilities. Always check the lease terms and consult your solicitor where possible — even when time is tight.
What if I’ve bought a leasehold flat?
Buying a leasehold flat at auction is very different from buying a freehold house. With leasehold, you are not buying the building itself, but rather a legal right to occupy the flat for a fixed number of years. The flat is part of a larger building which is often owned and managed by a freeholder (landlord) or management company.
What are the implications?
As a leaseholder, you are typically responsible for:
- Ground rent: An annual payment to the freeholder.
- Service charge: Your share of the costs of maintaining the building, communal areas, and facilities.
- Compliance with lease terms: Including restrictions on subletting, alterations, or use.
- Repairs inside your flat, but not to the structure or communal areas.
The freeholder or managing agent is responsible for the overall management of the building, including arranging buildings insurance, structural repairs, and maintenance of shared areas.
What are the risks when buying at auction?
- The full lease document is often not provided in the legal pack.
- The seller may not supply an LPE1 form or management pack, so you may be buying without knowing:
- The length of the lease.
- The amount of ground rent or service charges.
- Whether major works are planned.
- Whether there are arrears or disputes with the management company.
This means you could be committing to a flat with high costs or legal restrictions without being fully informed.
Summary
Leasehold properties can be complex and expensive to manage. If you’re buying a flat at auction, you need to understand that you are entering into a long-term legal relationship with a freeholder and may face significant financial liabilities. Always check the lease terms and consult your solicitor where possible — even when time is tight.
What is the difference between freehold and leasehold?
When you buy a property in England or Wales, you’re not just buying bricks and mortar — you’re buying a legal interest in the land. The two most common forms of ownership are freehold and leasehold, and the difference between them has significant legal and financial implications.
Understanding this distinction is vital when buying at auction, where leasehold properties are common and may come with additional risks or obligations.
What is freehold?
If you own a property freehold, you own:
- The building, and
- The land it stands on,
- Indefinitely — there is no time limit.
You are responsible for maintaining the property, but you do not pay ground rent or service charges to a landlord. Freehold is the simplest and most complete form of ownership.
Typical freehold properties:
- Detached houses
- Semi-detached houses
- Terraced houses
What is leasehold?
If you own a property leasehold, you have:
- The right to occupy the property for a fixed number of years (e.g. 99, 125, or 999 years),
- Under a legal lease agreement with the freeholder (also called the landlord),
- Subject to certain restrictions and ongoing payments.
You do not own the land or the building itself — just the lease.
Why does this matter for auction buyers?
You will typically have to pay:
- Ground rent to the freeholder.
- Service charges to maintain communal areas, buildings insurance, cleaning, etc.
- Contributions to major works on the building.
Leasehold properties are common in auctions — especially flats, maisonettes, and mixed-use buildings. But they can carry significant risks:
- Short leases reduce value and mortgageability.
- Unexpected charges or arrears may not be disclosed in full.
- No LPE1 form or lease summary is often provided in the auction pack.
- You may have limited ability to extend or alter the property.
- Some leases contain onerous clauses (e.g. escalating ground rent).
Summary
Freehold means you own everything. Leasehold means you own the right to live in the property for a fixed period, with obligations to a freeholder. If you’re buying at auction, always confirm the ownership type and review the lease terms carefully. At Versus Law, we specialise in identifying leasehold risks and helping clients make informed auction decisions.
What if the property is unregistered?
Most properties in England and Wales are now registered with HM Land Registry, which provides a centralised and guaranteed record of ownership. However, some properties — particularly older ones or those that haven’t changed hands for decades — are still unregistered.
Buying an unregistered property at auction involves additional risks and responsibilities, and it’s vital that you understand what this means before you bid.
What does “unregistered” mean?
An unregistered property:
- Has no digital title record at HM Land Registry.
- Is instead proven by a collection of original deeds, contracts, conveyances, and documents — often referred to as the “root of title.”
- May not have an up-to-date plan showing the property’s boundaries.
The buyer is responsible for first registration after completion — a process that must be done to legally own and deal with the property going forward.
What can special conditions include?
- Missing deeds: If key documents are lost, it can be hard to prove ownership or boundaries.
- Boundary disputes: There may be no clear plan confirming what land is included.
- Undisclosed rights or easements: You may be unaware of rights of way, covenants, or third-party interests.
- Mortgage difficulties: Many lenders are cautious about lending on unregistered properties.
- Longer conveyancing timeframes: Title must be reconstructed from old paperwork.
Auction sellers sometimes include a statutory declaration to support the title if deeds are missing — but this is not a guarantee of good title.
What you should do
Before bidding:
- Have your solicitor examine all available deeds and documents carefully.
- Check that there’s a clear, credible chain of ownership going back at least 15 years.
- Ensure a title plan is included or can be reliably reconstructed.
- Be prepared to register the property yourself with the Land Registry — which involves extra legal work and fees.
At Versus Law, we are experienced in first registration of unregistered land and can assist in identifying risks in the deeds before you commit.
Summary
Buying an unregistered property adds complexity and risk. Without a Land Registry record, you’re relying on old paperwork — and if anything is missing or unclear, it may affect your ability to prove ownership or secure finance. Make sure your solicitor checks the title thoroughly before bidding, and be ready for the extra work involved in registration.
What if I discover a title defect after the auction?
When you buy a property at auction, you are committing to purchase it on the terms set out in the legal pack, whether or not you fully understand those terms. If you discover a title defect after the auction, you are generally bound to complete the purchase, regardless of the issue.
What is a title defect?
A title defect is any legal issue affecting the ownership or marketability of the property. Common examples include:
- Missing rights of access or unclear boundaries.
- Unregistered title, or gaps in the chain of ownership.
- Restrictive covenants that limit how the property can be used.
- Easements or rights of way benefitting other parties.
- Charges or restrictions registered against the title.
- Absence of title plan or supporting deeds.
These issues may not prevent ownership — but they can reduce the value, affect resale, or make obtaining finance more difficult.
Can you back out?
In most cases, no. The standard auction conditions (and the special conditions) will usually state:
- The buyer has had the opportunity to inspect the title.
- The buyer accepts the title “as it is”.
- No further enquiries or objections can be raised after the hammer falls.
This means you cannot withdraw from the contract or demand a price reduction — even if a serious defect comes to light later.
Are there any exceptions?
A limited number of exceptions may apply if:
- The seller has deliberately misrepresented the title.
- The contract includes a clause requiring good title and the defect prevents this.
- The seller refuses to remedy a known defect that they undertook to resolve.
Even then, legal action is needed — and timeframes are extremely tight.
How to protect yourself
- Instruct your solicitor to review the legal pack before bidding.
- Do not rely on the auctioneer’s description alone — they may not be aware of title issues.
- If something in the title looks unusual or unclear, do not bid until it’s resolved.
- Be cautious of unregistered land, especially if supported only by a statutory declaration or handwritten deeds.
Summary
Buying at auction means accepting the legal title warts and all. If a defect is discovered after the auction, you will almost certainly still have to complete. This is why legal pack review is critical — and something we specialise in at Versus Law.










