Insolvency and Restructuring

The highly skilled commercial property team have substantial experience in acting for Insolvency Practitioners when dealing with the sale and disposal of distressed properties.

All businesses will face financial challenges at some point. Whatever the situation, we will ensure that you receive the best advice for your circumstances.

Landlord Insolvency

If you become insolvent as a landlord, you will need to notify your tenants. This will come in the form of a letter from the appointed insolvency practitioner and aims to inform the tenant of the current situation.

If the landlord’s company goes into liquidation, it may be that creditors decide that the best way to recover the largest proportion of the debt is to break up the company and its assets. This will mean that property freehold is likely to be put up for sale.

This will trigger the scenario known as ‘the leaseholders’ collective right of first refusal’ allowing the tenant the right of first refusal and is given the chance to buy the property before it can be sold to a third party.

However, the liquidator may decide to disclaim the freehold if it has no value or the value cannot be easily achieved. This relieves the liquidator from the responsibility and liability for the property and the property reverts to the Crown. The tenant continues the occupation of the property as a tenant against the Crown under the same terms and duration of the original lease.

An important consideration for the tenant is the ongoing property maintenance requirements. The Landlord and Tenant Act 1987 provides a clause for the leaseholder, where its freeholder ceases to exist, has the right to apply to the First-tier Tribunal for the formal appointment of a manager and receiver.

This can be a long and complex process, but our team of experienced and friendly solicitors will be on hand to guide you and answer any questions you may have.

Tenant Insolvency

Where a tenant is paying rent and otherwise complying with its obligations there would usually not be any reason to change anything.

Where a tenant fails to pay rent, the landlord may need to consider the reason for the non-payment and what options are available. These are:

  • Exercise commercial rent arrears recovery (CRAR)
  • Sue for rent by court action
  • Forfeit the lease for non-payment of rent

If the tenant fails to pay because they are, or will become, insolvent, then the above options may be restricted by the Insolvency Act 1986.

The corporate insolvency regimes are:

  • Company Voluntary Arrangements (CVAs)
  • Administration
  • Receivership
  • Winding up, or liquidation, when can be voluntary or compulsory

Individual regimes are:

  • Individual Voluntary Agreements
  • Bankruptcy

If you are experiencing any issues with non-payment of rent, either as the tenant or landlord, our highly knowledgeable and pragmatic team will advise you on the best course of action ensuring any risks or disputes are kept to a minimum.


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Commercial Property Testimonials

I just wanted to let you know how impressed my wife and I have been with Emily’s work on our recent purchase of some garden land.  I have acted as a chartered surveyor and arbitrator in commercial property for over 40 years and was highly impressed by her great ability, impeccable communication and proactive approach at all times.  She is a credit to your firm and I will always ask her to handle our property matters going forward.
Mr Router, BSc(Hons) DipArb FRICS FCIArb.

Prompt and professional service. Always on contactable to cover all technical queries. Howard’s thorough approach made the process comfortable and put our minds at rest to concentrate on running our business. Would definitely recommend
Mr Clements

We have been working with Howard Bailey for 3+ years. He is outstanding. Great listener. A real asset to our business together with his team of associates so much so that we feel he is a member of our team.
Legal 500, 2022