The recent update to the CQS Core Practice Management Standards (CPMS) requires CQS firms to have a policy in place for dealing with the purchase of leasehold property (s5.16).
Policy documents can be time-consuming and difficult to prepare without a Policy Template as a starting point.
Lexsure’s COMPLETIONmonitor team has drafted a set of policy templates (of which this is one) designed to make it simpler for conveyancing firms to meet their compliance obligations.
7 sections in the current version.
The Purchasing Leasehold Policy Template includes reference to:
...as well as other formalities and general obligations as required under 5.16 of the CPMS.
CONTENTS:
Own an earlier version? Buy only the paragraphs that have changed. Each paragraph arrives by email as a PDF as soon as you pay.
Draft addressing evolving legislative shifts, fee-earners must now advise that the 2026 Draft Bill proposes commonhold as the default tenure and a £250 ground rent cap. Clients should proceed under current laws while noting potential future conversion ease.
Aimed at fee earners prevent outdated advice regarding the abolished two-year ownership rule and prevents the use of redundant "bridge" notices. It highlights that the primary risk has shifted to the registration gap, as a valid notice can only be served once the buyer is formally registered at HMLR.
Sets out draft policy wording where the property is held under an underlease. This must be disclosed to the lender because such arrangements can affect value and mortgageability; some lenders won’t accept them, so fee earners must report the details, warn the buyer, and obtain the lender’s written approval before proceeding.
Suggested policy wording instructs lawyers to advise clients on the Leasehold and Freehold Reform Act 2024, explaining its partial implementation, pending legal challenges, and key changes such as the removal of the two-year ownership rule and the forthcoming abolition of marriage value, while highlighting timing risks and uncertainties around when these reforms will take effect.
Summarises key reforms under the Leasehold and Freehold Reform Act 2024: lease extensions for flats will rise to 990 years with peppercorn rent; Right to Manage rules are more favourable to leaseholders; new leasehold house sales are largely banned; and stronger transparency and accountability requirements now apply to service charges and insurance.
Advises lawyers to comply with lenders’ specific leasehold requirements under section 5.14 of the UK Finance Mortgage Handbook and to check that leases meet those standards, even on remortgages. Its purpose is to ensure clients are clearly advised on the implications of leasehold tenure, including mortgageability, lease term, and latest legislative reforms ,so that both lender and buyer risks are properly managed.
Sets out an obligation to verify compliance with lender requirements for leased solar panels and obtain written confirmation the lender will proceed.
Wording recognising that lease matters can be complex setting out how a matter should be escalated if any issues are beyond their expertise of the fee earner. This ensures accurate advice, mitigates risks, and upholds professional and compliance standards.
Buying 9 or more paragraphs? The full current policy costs the same or less at £675.00 + VAT.
Sample template bundles do not include a template to show the structure of the residential conveyancing department at a firm. The data protection policy template covers the requirements of CQS, however it is the responsibility of the firm to ensure it is compliant with the requirements of the General Data Protection Regulation.