Property issues in administration

This topic deals with property related issues that arise in the course of the administration of a company. For more detailed guidance on the administration process, see: Administration—overview.

It is very common for a company in administration to have a property asset of some type, for example, a lease of the business premises where the company operates from or a freehold property such as a shopping centre which represents the main asset of the company and which has been secured in favour of a lender.

The administrator will commonly seek to use the property in some way during the course of the administration to achieve the purpose of the administration set out in paragraph 3 of Schedule B1 to the Insolvency Act 1986. For example, the administrator may trade the business from the property or seek to sell the property as part of a sale of the business and assets of the company as a going concern.

When are you are acting for an administrator selling a business which has a property asset, it is important to involve real estate colleagues at an early stage