Disclaimer, dissolution and bona vacantia

Copyright © 2026 LexisNexis

Disclaimer

Liquidators and trustees in bankruptcy (trustees) are entitled to disclaim any onerous property.

Onerous property in each case is defined (sections 178(3) and 315(2) of the Insolvency Act 1986) as:

  1. •

    any unprofitable contract

  2. •

    any other property which is unsaleable or not readily saleable, or is such that it may give rise to a liability to pay money or perform any other onerous act

The form of onerous property that is most commonly encountered by office-holders is leasehold property, but disclaimer is not in any way limited just to leases. It applies to any contract or property that falls within the scope of the statutory definitions. For guidance on onerous property, see Practice Note: What is considered onerous property or contracts?

Disclaimer is effected by the liquidator or trustee authenticating and dating a notice of disclaimer and sending copies of the authenticated and dated notice of disclaimer to prescribed persons.

Disclaimer takes effect from the date of the notice of disclaimer, except in respect of disclaimers of leasehold property and (in the case of disclaimer by a trustee) of property which

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Property Disputes News

The Renters’ Rights Act 2025 and Wales—extending protections from discrimination to Welsh contract-holders

Property analysis: Sarah Salmon and Alistair Cantor of Cornerstone Barristers dissect the forthcoming anti-discrimination measures due to be introduced by the Renters’ Rights Act 2025 to landlord and tenant legislation in Wales, consequential changes to fundamental terms applicable to occupation contracts, and implications for stakeholders in the Welsh private and social rented sectors.

Property Disputes weekly highlights—19 February 2026

This week's edition of Property Disputes weekly highlights includes: analysis of the forthcoming anti-discrimination provisions in the Renters’ Rights Act 2025 in Wales, the Law Commission’s scoping report on agricultural law in Wales, the BPF’s response to the government’s call for evidence on Business Rates and Investment, and Court of Appeal decisions regarding statutory standing for Code agreement renewals, and the conduct of the sale of a property in receivership. It also includes the Civil Justice Council’s consultation on AI use in court document preparation, Upper Tribunal decisions on interim service charges, theweight given to actual lettings versus comparable evidence in a rateable value assessment and the modification of a restrictive covenant, and a High Court decision on relying on a drainage plan as evidence in a boundary dispute.

Exercising a right to advertise at a railway station means advertiser liable for non-domestic rates—Network Rail Infrastructure Ltd v List (Valuation Officer)

Local Government analysis: The Court of Appeal dismissed Network Rail Infrastructure Limited's appeal against a decision of the Upper Tribunal concerning the business rates treatment of advertising rights at Victoria Station and Liverpool Street Station in London. The court held that sections 64(2) and 65(8) of the Local Government Finance Act 1988 (LGFA 1988) deem a qualifying right to use land for the purpose of exhibiting advertisements a hereditament in the occupation of the person entitled to the right. The court rejected Network Rail's argument that the phrase ‘let out’ in LGFA 1988, s 64(2) required a qualitative assessment of the degree of separation between the advertising right and the host hereditament. Instead, the court found that ‘let out’ simply referred to the creation of such a right, with no additional requirement for paramountcy of occupation or control. Written by Tim Baldwin, barrister, Garden Court Chambers.

CJC launches consultation on AI use in court document preparation

The Civil Justice Council (CJC) has launched a consultation on the use of artificial intelligence (AI) by legal representatives in the preparation of court documents. The consultation, conducted by the CJC's 'Use of AI in Preparing Court Documents' Working Group, considers whether rules are required to regulate the use of AI in drafting pleadings, witness statements and expert reports. The working group was established at the CJC's annual strategy meeting in January 2025 and is chaired by the Deputy Head of Civil Justice, Lord Justice Birss. Its members include High Court judges, CJC members and representatives from the Bar Council and the Law Society. The consultation closes on 14 April 2026. Following the consultation, the CJC will publish a final report.

View Property Disputes by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Disclaimer of a lease-impact on landlords, tenants and third parties

Disclaimer of a lease—impact on landlords, tenants and third partiesThis Practice Note covers what happens to a lease on disclaimer, the impact on landlords, tenants, sub-tenants, former tenants and guarantors, and the effect of a vesting order.Ending the tenant’s interest in the leaseA liquidator

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit
Disclaimer of a lease-impact on landlords, tenants and third parties

Disclaimer of a lease-impact on landlords, tenants and third parties

Disclaimer of a lease—impact on landlords, tenants and third partiesThis Practice Note covers what happens to a lease on disclaimer, the impact on landlords, tenants, sub-tenants, former tenants and guarantors, and the effect of a vesting order.Ending the tenant’s interest in the leaseA liquidator

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit