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CHAPTER 31.3: DEALING WITH FREEHOLD & LEASEHOLD PROPERTIES
SEPTEMBER 2008
INTRODUCTION
31.3.1 Introduction (amended October 2010)
This chapter is intended to deal with all freehold and leasehold property in which a company has an interest, as well as any commercial property that is part of a bankrupt’s estate.
Guidance on dealing with the bankrupt’s interest in residential property is given in Chapter 33 -The Bankrupt’s Interest in the Family Home.
Guidance on dealing with a company or bankrupt’s interest in tenanted property is given in Chapter 31.11 – Solely Owned Tenanted Property, and Chapter 31.12 – Jointly Owned Tenanted Property.
Where an individual was adjudged bankrupt on a petition presented on or after 1 April 2004, the bankrupt has an interest in a dwelling-house which is either solely or jointly owned and that dwelling-house was, at the date of the bankruptcy order, the sole or principal residence of the bankrupt, bankrupt's spouse, civil partner, ex-spouse or ex civil partner, the official receiver should refer to the guidance given in Chapter 33, Part 1.
This chapter has been divided into 9 parts as follows:
Part 1 –Identification of interest in property (paragraphs 31.3.2 to 31.3.21)
Part 2 – Protection of interest in property (paragraphs 31.3.22 to 31.3.39C)
Part 3 – Disposal of property with equity (paragraphs 31.3.40 to 31.3.49)
Part 4 – Disposal of property with no equity (paragraphs 31.3.50 to 31.3.60)
Part 5 – Landlord and Tenant Act 1987 (paragraphs 31.3.61 to 31.3.73)
Part 6 – Leasehold Reform, Housing and Urban Development Act 1993 (paragraphs 31.3.74 to 31.3.81)
Part 7 – Property owned outside of England and Wales (paragraphs 31.3.82 to 31.3.86)
Part 8 – Insolvency of a Registered Social Landlord (paragraphs 31.3.87 to 31.3.90)
Part 9 – The sale of freehold reversions (paragraphs 31.3.91 to 31.3.95)
This chapter has three Annexes as follows:
Annex A - Matters to be considered by the official receiver when dealing with freehold/leasehold properties (other than the family home)
Annex B – German translation of MP2 letter (to mortgage lender seeking information about the mortgage)
Annex C – German translation of MP3 letter (to a mortgagee asking them to note the official receiver’s interest in property which forms part of the bankruptcy estate; a copy of which is signed by the mortgagee and returned to the official receiver.
The following abbreviations are used in this chapter:
LPA25 – Law of Property Act 1925
LRHUDA – Leasehold Reform, Housing and Urban Development Act 1993 (as amended by the Housing Act 1996, and Commonhold and Leasehold Reform Act 2002)
LTA87 – Landlord and Tenant Act 1987 (as amended by the Housing Act 1996, and Commonhold and Leasehold Reform Act 2002)
RSL – Registered Social Landlord
[On to Part 1 – Identification of interest in property]