What happens if a letting agent goes bust?

Make sure the property is legal – that any services arranged by the letting agent like gas certificates, HMO licences and insurance are up-to-date, and tenant deposits are protected. • Take a copy of tenancy agreements and make sure any notices have been served.

What happens to a lease when a company goes into liquidation?

When a company goes into liquidation, a liquidator can disclaim the lease. This is a unilateral decision by the liquidator to simply hand back the property to the landlord. The liquidator will do this by sending a form under section 178 of the Insolvency Act 1986 to the landlord and all other interested parties to disclaim the onerous lease.

What happens to unpaid rent in a voluntary liquidation?

Whether you are able to reclaim unpaid rent will depend on the circumstances. In a voluntary liquidation, for example, the tenant may strike a deal with his creditors (including the landlord) whereby you receive some of the outstanding rent.

What happens if a liquidator tries to sell the property?

If the liquidator has decided to try and sell the property freehold, an interesting scenario then arises known as the leaseholders’ collective Right of First Refusal (under the Landlord and Tenant Act 1987.

What to do if your landlord is in liquidation?

Given the legal complications surrounding peaceable re-entry, landlords would be advised to have a solicitor present if they choose to enact this option. It will also be necessary to fix a notice of forfeiture to the exterior of the premises and to send copies of this notice to the tenant’s registered address.

How does a liquidation affect the rights of a landlord?

The liquidation does affect the rights of creditors, which means the landlord can’t continue or commence legal action against the tenant (eg to recover rent arrears) without leave of a court. The company does remain liable for rent and other amounts owing under the lease before the liquidator’s appointment.

What happens when a liquidator is appointed to a tenant?

If a liquidator is appointed to a tenant company: At any time the liquidator can disclaim the lease and vacate the landlord’s premises, which means: the liquidator isn’t personally liable for rent or other amounts payable under the lease and nor is the company during the liquidator’s occupation of the premises; and.

What happens when a company goes into liquidation?

When a company goes into liquidation, a liquidator can disclaim the lease. This is a unilateral decision by the liquidator to simply hand back the property to the landlord.

How does a liquidator hand back a property?

This is a unilateral decision by the liquidator to simply hand back the property to the landlord. The liquidator will do this by sending a form under section 178 of the Insolvency Act 1986 to the landlord and all other interested parties to disclaim the onerous lease.