Property and Insolvency
At Francis Wilks & Jones we have extensive experience of dealing with property in insolvency related situations.
Landlords of Insolvent Tenants
The law relating to tenant insolvency can be complex and it is important to take advice at an early stage to ensure that you have as many options and possible recovery methods open to you as possible.
The team at Francis Wilks & Jones can assist you whether your tenant is in financial distress, contemplating an insolvency process or already in formal insolvency. We can help you assess your options, explain the impact of various insolvency processes on you and help you understand your rights as a landlord of an insolvent tenant.
We regularly assist landlords who have received notice that their tenant is due to be placed into liquidation or is proposing a Company Voluntary Arrangement and are able to help interpret proposals from the nominated insolvency practitioner, put forward modifications if required, complete forms to vote at meetings and attend meetings of creditors.
Where a tenant has already been placed into liquidation or administration, and particularly where the administrators is using the premises for the purposes of the administration, we are able to assist a landlord in negotiating rights of access and occupation with the insolvency practitioner and agreeing the terms of which payment in relation to the same is to be made. We can also assist the landlord with the negotiation of the terms of any deeds of surrender or licences to assign that they are asked to consider. Where a disclaimer has been served we can assist the landlord in dealing with it, and also advise in relation to any subsequent application for a vesting order that is made.
You may find it useful to read our booklet, 10 things to consider when dealing with an insolvent tenant, or about our services to creditors.
Acquiring property from insolvent sellers
We are accustomed to advising purchasers looking to buy freehold or leasehold land from insolvent companies. We also regularly act for buyers acquiring the business of an insolvent company as a going concern and can advise and assist those buyers in formalising rights of occupation or access to the insolvent company’s trading premises including negotiating licences to occupy, tenancies at will or assignments of leases.
It can be very concerning if you are a tenant who finds out that their landlord is facing financial difficulties or is in a form of insolvency. Usually, in such situations, the rights to occupation of the tenant are honoured by any party appointed administrator, liquidator or receiver of the landlord but this is dependent on the type of contract or lease that you have with the landlord. In certain circumstances, a landlord’s insolvency may mean that it is possible to give notice to you to severe your rights of occupation and ask you to vacate the premises. We can assist tenants in understanding what may happen if they landlord becomes insolvent, and in particular in understanding who will take the responsibility for management issues, repairs and insurance obligations that the landlord would usually be responsible for.
We offer specialist services to landlords of residential property who are looking to recover possession of their property or collect rental arrears. Please click here for further details.