The following Restructuring & Insolvency guidance note Produced in partnership with Jonathan Titmuss of Hardwicke Chambers provides comprehensive and up to date legal information covering:
This Practice Note considers the position of a fixed charge receiver appointed over a development property—commonly a residential block of flats under construction—where there is a management company in place.
The basic objective of receivers in such a situation is to obtain a sufficient degree of control over the management of the property to ensure:
the receivers are able to obtain management company’s signatures to new long leases to be granted to purchasers, and
the property is properly maintained while the receivers seeks to sell the unsold units
This Practice Note does not deal with statutory provisions which may be available in both solvent and insolvency situations. Nor does it consider statutory trusts applicable to service charge receipts from tenants pursuant to section 42 of the Landlord and Tenant Act 1987 (LTA 1987), nor does the Practice Note consider the potential impact of the statutory pre-emption right in respect of the landlords interest and the threshold pursuant to the LTA 1987, see Practice Note: Landlord and Tenant Act 1987—tenants' right of first refusal (subscription to Lexis©PSL Property required).
Following (or during) construction of a residential block of flats, a developer who owns the freehold (or long headleasehold) will commonly look to sell units in the residential block on long leases to purchasers.
The developer in
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234