Q&As

Where a commercial tenant company dissolves on the basis of a non-insolvent voluntary liquidation leaving ongoing liabilities under LTA 1954 lease, what are the landlord’s remedies in respect of the continuing obligations ie rent and dilapidations, including any preemptive steps?

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Published on LexisPSL on 31/01/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Where a commercial tenant company dissolves on the basis of a non-insolvent voluntary liquidation leaving ongoing liabilities under LTA 1954 lease, what are the landlord’s remedies in respect of the continuing obligations ie rent and dilapidations, including any preemptive steps?
  • Members voluntary liquidation
  • Disclaimer
  • Dissolution
  • Landlord’s remedies/options
  • Forfeiture
  • Disclaimer
  • Without prejudice negotiations

Where a commercial tenant company dissolves on the basis of a non-insolvent voluntary liquidation leaving ongoing liabilities under LTA 1954 lease, what are the landlord’s remedies in respect of the continuing obligations ie rent and dilapidations, including any preemptive steps?

Members voluntary liquidation

It has been assumed this Q&A refers to a members voluntary winding up which can only take place where the company is solvent and the creditors will be paid in full. A voluntary winding up must be commenced by a special resolution of the company under section 84 of the Insolvency Act 1986 (IA 1986). For more information in respect of members voluntary liquidation (MVL), see Practice Note: Voluntary liquidation and Members' voluntary liquidation (MVL)—overview and Practice Note: What is a members' voluntary liquidation (MVL) and where/when is it typically used?

The landlord is able to prove for amounts due under the lease including for sums due in the future (discounted to reflect a debt payable in the future) and be paid in full. For further information on quantification of claims, see Practice Note: Proof of debt—the position under the Insolvency (England and Wales) Rules 2016, however, in members voluntary winding up, the creditor need only prove if the liquidator requires it (Insolvency Rules 2016, SI 2016/1024, r 14.3(1)(b)).

Disclaimer

Under IA 1986, s 178, the liquidator has the power to disclaim onerous property, which can

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