Property insolvency

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Supreme Court decides on COVID-19 business interruption coverage—what does this mean for real estate?

The following Property Disputes news provides comprehensive and up to date legal information on Supreme Court decides on COVID-19 business interruption coverage—what does this mean for real estate?

PizzaExpress—Part 26A restructuring plan sanction hearing

The following Banking & Finance news provides comprehensive and up to date legal information on PizzaExpress—Part 26A restructuring plan sanction hearing

HMRC’s new preferential creditor status—impact on insolvency practitioners

The following Banking & Finance news provides comprehensive and up to date legal information on HMRC’s new preferential creditor status—impact on insolvency practitioners

Corporate Insolvency and Governance Bill—a view from the restructuring and insolvency profession

The following Banking & Finance news provides comprehensive and up to date legal information on Corporate Insolvency and Governance Bill—a view from the restructuring and insolvency profession

Featured Property Disputes content

Forfeiture of a lease

Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been...

Claims for use and occupation, mesne profits, double rent and double value

This Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be...

Specific performance of property agreements

If a party to a property agreement fails to comply with its obligations, the other party may wish to apply for an order for specific performance....

Section 26 notice—Tenant’s request for a new business tenancy under LTA 1954

Tenant's request for a new business tenancyThese drafting notes are for use when completing a tenant’s request for a new business tenancy under the...

Practice notes

Void contracts

When is a contract a void contract?A void contract is one that is wholly lacking in legal effect. A contract will be void where:•the parties contract...

9th Nov

Practice notes

Remedies for breach of restrictive covenants

Damages or injunction — the testThe primary remedy for breach of a restrictive covenant is a permanent injunction to restrain the breach. However, the...

9th Nov

Practice notes

Mortgagee in possession

This Practice Note covers the rights and responsibilities of a mortgagee in possession.RightsA legal mortgagee has a right to possession of the...

9th Nov

Practice notes

Successors in title—leases

The meaning of the term ‘successors in title’ will depend upon the context of the use of the term and also the drafting of the relevant lease.A...

9th Nov

Practice notes

Notice to complete

While this Practice Note primarily covers commercial property matters, it also touches on residential considerations.Time is generally not of the...

9th Nov

COVID-19

Practice notes

Discharging a charging order over land

This Practice Note sets out the procedure for discharging a charging order over property, including the removal of any notices or restrictions on...

9th Nov

Practice notes

Surrender by operation of law

A surrender by operation of law occurs when the unequivocal conduct of both parties is inconsistent with the continuation of the tenancy. This is...

9th Nov

Practice notes

Concurrent and reversionary leases

There can be only one lease at a time giving a right to possession and occupation of property. Consequently, if a landlord subsequently grants a lease...

9th Nov

Precedents

Section 146 notice where Leasehold Property (Repairs) Act 1938 applies

Notice before forfeitureCoronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and...

9th Nov

Practice notes

What happens to a lease when the tenant's liquidator disclaims?

This Practice Note covers what happens to a lease on disclaimer and the effect of disclaimer on tenants, guarantors and former tenants, applications...

9th Nov

Practice notes

Lease variations—surrender and re-grant issues

The implied or deemed surrender and re-grant of a lease arises where an agreed variation of the terms of the original lease is so fundamental that the...

9th Nov

Practice notes

Rights of light—obstruction notices

This Practice Note summarises the light obstruction notice (LON) procedure, explains the 19 years and 1 day rule and its relevance in respect of...

9th Nov

Practice notes

Trespass—remedies

Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been...

9th Nov

In-house

Practice notes

Statutory compensation under the Landlord and Tenant Act 1954

Statutory compensation—which grounds are compensatable?Under section 37 of the Landlord and Tenant Act 1954 (LTA 1954), the tenant is entitled to...

9th Nov

Practice notes

Trespass—claims and defences

Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been...

9th Nov

Practice notes

Rights of light claims

Is there an interference with the right to light?Where a right of light has been established (see Practice Note: Establishing and maintaining rights...

9th Nov

Most recent Property insolvency content

Practice notes

Corporate Insolvency and Governance Act 2020—restructuring plan provisions

Spurred on by the coronavirus (COVID-19) pandemic, the government pushed through the Corporate Insolvency and Governance Act 2020 (CIGA 2020). The...

25th Jan

COVID-19

Q&As

Can a landlord forfeit a lease by peaceable re-entry if the tenant is bankrupt, vacated the premises some time ago, and has substantial rent arrears (the lease allows for forfeiture if the tenant is bankrupt)? What are the risks of the landlord doing this? Also, does liability under an authorised guarantee agreement (AGA) cease on surrender of the lease (express or implied) or forfeiture for bankruptcy, or does this come down to the wording used in the AGA?

A tenant who fails to pay the rent will ordinarily find that the landlord forfeits the lease as a result, assuming there is a clause in the lease...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

Q&As

Can a discharged bankrupt (B) make an application for adverse possession of land where: B was once the registered proprietor of the land but his interest in the land was disclaimed by his Trustee in Bankruptcy during his bankruptcy, and B has remained in occupation of the land since the disclaimer for over ten years?

BankruptcyWhile this Q&A mentions both undischarged and discharged bankrupt, we have focused on ‘discharged’. We have also assumed that this Q&A is...

22nd Jan

Q&As

If a retail tenant is in administration, are the administrators liable to pay rent as an expense of the administration where the store is currently locked shut and unused due to the coronavirus (COVID-19) pandemic, but still contains stock and the administrators intend to re-open the store and begin to trade again once this is possible?

An application to court for an administration order gives rise to an interim moratorium in respect of claims against the relevant company (paragraph...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

COVID-19

Q&As

Where a tenant company has filed a company voluntary arrangement (CVA) and wishes to assign the lease, should the landlord deal with the tenant or its insolvency practitioners in that regard? And, in the context of a CVA, can the landlord request an authorised guarantee agreement from the original guarantor?

Although the supervisor of a company voluntary arrangement (CVA) will be an insolvency practitioner (and their role is to ensure that the proposals...

Produced in partnership with Helen Galley of XXIV Old Buildings 22nd Jan

Q&As

Where a developer company has been wound up without transferring the freehold of an estate road to a residents’ management company (Manco), would the Manco be able to seek a vesting order? Could the Manco elect to leave the road with the Crown and merely maintain it?

We have assumed that the estate road is not a public highway, and adoption of the road by the Highways Authority is not considered.Initial entitlement...

Produced in partnership with Jonathan Edwards of Radcliffe Chambers 22nd Jan

Q&As

A seller has exchanged contracts for the sale of commercial land but fears that the buyer may go into administration before completion. If an administrator or other insolvency practitioner is appointed, will the seller be obliged to complete the contract?

Failure to complete contract for the sale of landTime is generally not of the essence for completion of a contract for the sale of land. If the seller...

22nd Jan

Q&As

Under the terms of a company voluntary arrangement, a company has served a break notice on a landlord. The company enters into administration prior to the break date, what is the impact?

Company voluntary arrangementsA company voluntary arrangement (CVA) is a statutory contract between the company and its creditors and is used by a...

22nd Jan

Q&As

Would the position be different if the property were jointly owned by the bankrupt and his wife (the latter of which is not subject to any bankruptcy petition or order)? The possession order is as against both joint owners.

When a bankruptcy order is made, a bankrupt’s property normally automatically vests in the Official Receiver/trustee in bankruptcy. However, property...

22nd Jan

Q&As

Where property is owned jointly and one party is facing bankruptcy, what can the other party do to stop a sale of the property by a trustee in bankruptcy and keep the property?

When a bankruptcy order is made against the co-owner of a property, the beneficial joint tenancy is automatically severed and the bankrupt’s estate...

Produced in partnership with Sarah Finch of Hamlins LLP 22nd Jan

Q&As

Where a commercial tenant goes into administration, can the administrator sell the tenant company to another company and let the new company into occupation of the property without obtaining the landlord's consent in accordance with the lease? Can the administrator grant a new company a licence to occupy the property without the landlord's consent? If the lease is to be surrendered or disclaimed, can the landlord make a claim for dilapidations? If the lease is to is to be surrendered, is it prudent for the landlord to require a deed of surrender to avoid uncertainty?

Can the administrator sell the tenant company to another company and let the new company into occupation of the property without obtaining the...

22nd Jan

Q&As

A trustee in bankruptcy obtains an order for possession of the bankrupt's freehold property and is then informed that the bankrupt had granted a tenancy to a third party to occupy the property after the date of the bankruptcy order but before discharge. Is the trustee in bankruptcy bound by the tenancy or can he simply enforce the order for possession against the freeholder in the usual way?

The bankruptcy takes effect on the day the order is made under section 278(1) of the Insolvency Act 1986 (IA 1986). The effect of the making the order...

22nd Jan

Q&As

Is interest payable on arrears of rent for a period after the appointment of an administrator to a tenant, or does the moratorium prevent interest from accruing?

In administration a company enjoys certain protection from creditors by virtue of a moratorium imposed by paragraph 43 of Schedule B1 to the...

22nd Jan

Q&As

Following the Debenhams decision, a landlord is entitled to forfeit a lease on grounds that its tenant has entered into a company voluntary arrangement (CVA) (where expressly provided for by the lease). What would happen where the landlord forfeits on grounds that a CVA has been proposed but the tenant then applies for relief from forfeiture? If relief were to be granted, that would serve to reinstate the lease—would it therefore be subject to the CVA (including any terms as to reduced rent) again?

It was established in the High Court case of Discovery (Northampton) Ltd v Debenhams Retail Ltd that a company voluntary arrangement (CVA) cannot vary...

22nd Jan

Q&As

A former residential tenant (A) is liable for rent and insurance arrears under an authorised guarantee agreement. Where the arrears pre-date a bankruptcy order made against A, does section 281(5)(a) of the Insolvency Act 1986 mean that the landlord can still issue proceedings and seek to recover the arrears from A? Does the fact that A has been discharged from bankruptcy make any difference?

This is a ‘new’ lease under the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995). Accordingly, presumably the former tenant is liable for...

22nd Jan

Q&As

Where a tenant has served a section 26 request for a new tenancy under the Landlord and Tenant Act 1954, what is the effect of the tenant entering administration whilst lease renewal proceedings are ongoing?

Administration is a form of insolvency with a view to the rescuing by the administrator of the company as a going concern or getting a better outcome...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

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?

Members voluntary liquidationIt has been assumed this Q&A refers to a members voluntary winding up which can only take place where the company is...

22nd Jan

Q&As

Can an LPA Receiver seek an order for possession in respect of a family home? Does the application for possession need to be made by the mortgagee who appointed the LPA Receiver rather than by the LPA Receiver?

Can an LPA Receiver seek an order for possession?The right to appoint an LPA receiver under the Law of Property Act 1925 (LPA 1925) arises when the...

22nd Jan

Q&As

Where a tenant needs to serve a break notice under a lease, but an LPA receiver has been appointed over the landlord's interest, who should the notice be served on?

The appointment of an LPA is a remedy available to a mortgagee seeking to recover sums due under the mortgage granted in their favour. The LPA...

22nd Jan

Q&As

Where a tenant of a commercial lease has gone into administration and vacated a property prior to the contractual end date, there has been no surrender nor forfeiture, and the property has stayed empty, is the landlord entitled to claim the ongoing rent as an unsecured creditor by way of a provable debt in the administration, and what role does the Insolvency Rules 2016, SI 2016/1024, r 14.22 play in this situation?

An application to court for an administration order gives rise to an interim moratorium in respect of claims against the relevant company (paragraph...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

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Property insolvency

View Property Disputes by content type:

Latest Property Disputes News

Supreme Court decides on COVID-19 business interruption coverage—what does this mean for real estate?

PizzaExpress—Part 26A restructuring plan sanction hearing

HMRC’s new preferential creditor status—impact on insolvency practitioners

Corporate Insolvency and Governance Bill—a view from the restructuring and insolvency profession

Featured Property Disputes content

Forfeiture of a lease

Claims for use and occupation, mesne profits, double rent and double value

Specific performance of property agreements

Section 26 notice—Tenant’s request for a new business tenancy under LTA 1954

Most recent Property insolvency content

Popular documents

Contractual damages—pecuniary losses

What is a contract of insurance?

Commercial Property Standard Enquiries (CPSE)—environmental and health and safety enquiries

What is a third party debt order (TPDO)?

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