Q&As

How should a secure business tenancy which has become bona vacantia become vested in a Newco and what would the implications be under the Landlord and Tenant Act 1954?

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Published on LexisPSL on 18/11/2016

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  • How should a secure business tenancy which has become bona vacantia become vested in a Newco and what would the implications be under the Landlord and Tenant Act 1954?

How should a secure business tenancy which has become bona vacantia become vested in a Newco and what would the implications be under the Landlord and Tenant Act 1954?

On dissolution, all property and rights vested in, or held on trust for the company, immediately before dissolution are deemed to be bona vacantia and vest in the Crown (or in the Duchy of Lancaster or Duke of Cornwall if the company’s registered office was in Lancaster or Cornwall respectively). This includes leasehold property, but not property held by the company on trust for any other person (section 1012(1) of the Companies Act 2006 (CA 2006)). Accordingly, the Oldco's lease will have vested in the Crown. One course of action therefore to consider would be to approach the Treasury Solicitor to assign the lease to Newco.

Note however, that the Crown is not obliged to deal with property vested in it as bona vacantia in any particular way. It has power to disclaim it and, in respect of onerous property, will usually do so. It has three years from the date of the vesting coming to the Treasury Solicitor’s knowledge or 12 months from receipt of notice from a person interested in the property, to disclaim the property. The Treasury Solicitor confirms in its guidance that, as a matter of policy, the Crown disclaims onerous property such

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