Q&As

What is the effect of the dissolution of a company which held an intermediate leasehold interest which was subject to a sub-tenancy?

read titleRead full title
Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 23/06/2021

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • What is the effect of the dissolution of a company which held an intermediate leasehold interest which was subject to a sub-tenancy?

What is the effect of the dissolution of a company which held an intermediate leasehold interest which was subject to a sub-tenancy?

When a company is dissolved, its assets vest in the Crown as bona vacantia (literally, ownerless goods)—see section 1012 of the Companies Act 2006 (CA 2006). This applies not just to chattels but also to real property (including leases). The Crown will often disclaim its interest in the lease, bringing it to an end, under CA 2006, s 1013. By CA 2006, s 1015, disclaimer operates so as to terminate, as from the date of the disclaimer, the rights, interests and liabilities of the company in or in respect of the property disclaimed. The Crown does not accept liability under any tenant covenants including in respect of the payment of rent.

When the intermediate lease is disclaimed by the Crown, all its rights and obligations are brought to an end. There is no longer any right to remain in occupation of the property, and the landlord is not entitled

Related documents:

Popular documents