Source: http://www.leaseholdlife.info/index.php/component/content/article/18-leasehold-lifes-guest-contributors/595-acquiring-the-freehold-from-a-dissolved-company
Timestamp: 2014-10-25 01:24:59
Document Index: 96296134

Matched Legal Cases: ['art 1', 'art 2', 'EWCA ', 'EWCA ', 'UKSC ', 'EWCA ', 'EWCA ', 'UKSC ', 'EWCA ', 'UKSC ', 'EWCA ', 'UKSC ', 'EWCA ']

Home Sharon Crossland AIRPM: Biography Testimonials Child & Child Solicitors Katie Cohen: Partner FPRA (Federation of Private Residents Associations) Bob Symtherman: Chairman Hera Property Management Services Suzanne Wicks: Managing Director Painsmith Solicitors David Whitney: Solicitor & Mediator Rosetta Consulting Ltd Kat Callo: Author, Director & Strategy Consultant SA Law LLP Chris Alexander: Solicitor Your Home Property Management James Cooke: Director Leasehold Life's Journey To Right To Manage: Part 1 Leasehold Life's Journey To Right To Manage: Part 2 Wellington Mansions Photo Gallery: Installations, Maintenance & Repairs Buying Flats Asking Questions & Buyer Beware! Questions Of The Local Authority Local Land Charges What Does The Lease Say About Subletting? Energy Performance Certificates (EPC's) EPC Register Extending The Lease During The Sale Registered & Unregistered Property: Quality of Title Local Land Charges Sample conveyancing Documents Case Law Updates Barrister Jonathan Upton: Tanfield Chambers July 2014: Cases A, B, C, D, F, H & J A Arnold v Britten [2012] EWHC 3451 (Ch): Landlord Profit Over & Above Service Provision Costs B Birmingham City Council v Keddie [2012] UKUT 323 (LC) & Crosspite Ltd v Sachdev [2012] UKUT 321 (LC): Determination Of Issues Not Identified By Parties Brickfield Properties Limited v Botten [2013] UKUT 0133 (LC): Lease Variations & Date Of Effect Burr v OM Property Management Limited [2013] EWCA Civ 479: s20b & Incurred Costs C Campbell v Daejan Properties Ltd [2012] EWCA Civ 5103: Does 'Premises' Mean 'House'? Carey-Morgan v de Walden [2013] UKUT 0134 (LC): Cleaner Or Caretaker? Christoforouv Standard Apartments [2013] UKUT 586 (LC): Contractual Entitlement To Costs Chowdhury v Bramerton Management Co Ltd [2014] UKUT 260 (LC): Interim Service Charges Columbia House Properties (No3) Ltd v Imperial Hall RTM Company Limited [2014] UKUT 30 (LC): RTM Claim Costs Cussens v Realreed Limited [2013] EWHC 1229 (QB) D Daejan Properties Ltd v Griffin [2014] UKUT 0206 (LC): Service Charges & Historical Neglect Daejan Investments Ltd v Benson [2013] UKSC 14; [2013] 1 W.L.R. 854: s20 Di Marco v Morshead Mansions Ltd [2013] EWHC 1068 (Ch): Service Charge Information & Supporting Accounts F Fencott Ltd v Lyttelton Court RTM Company Ltd [2014] UKUT 0027 (LC): Estate-Wide RTM Permissible Friends Life Management Services Ltd v A & A Express Building Ltd [2014] EWHC 1463 (Ch): Last Financial Year Of A Lease H Hillfinch Properties Ltd v Lessees of Southbourne Court [2013] UKUT 096 (LC): Affordability Of Major Works J Johnson v County Bideford [2012] UKUT 457 (LC): Invalidity Of A Service Charge Demand July 2014: Cases M, P, Q, R, S, T & W M Moorings (Bournemouth) Ltd v McNeill [2013] UKUT 243 (LC): Validity Of A Parking Scheme Morshead Mansions Ltd v Mactra Properties Ltd [2013] EWHC 224 (Ch): Furnishing Of Service Charge Accounts P Peverel Properties Limited, Peverel OM Limited v Hughes [2012] UKUT 258 (LC):Major Works Stage 2 Consultation Notice Phillips v Francis [2012] EWHC 3650 (Ch D): Meaning Of Qualifying Works Pineview Ltd v 83 Crampton Street RTM Co Ltd [2013] UKUT 598 (LC): RTM Claim Notice & Appurtenant Property Proxima GR Properties v McGhee [2014] UKUT 59 (LC): Reasonable Charges When Subletting Q Qdime Ltd v Bath Building (Swindon) Management Company Ltd [2014] UKUT 0261 (LC): Buildings Insurance & Terrorism Cover R R (on the application of O Twelve Baytree Limited) v. Rent Assessment Panel [2014] EWHC 1229 (Admin): RTM Withdrawal Notice Red Kite Community Housing Ltd v Robertson [2014] UKUT 134 (LC): LVT Decision On Cleaning Costs Unclear R (on the application of Spaul) v Upper Tribunal (Administrative Appeals Chamber), Unreported, 22 May 2013 (QB) (Leggatt J): Notice Of Application For Major Works Costs S Sadd v Brown [2012] UKUT 438 (LC): Lessor Can't Recover Insurance Premium Cost T Triplerose Ltd v Grantglen Ltd [2012] UKUT 204 (LC): Landlord Name & Address Incorrect Tobicon Limited v Collinson [2013] UKUT 047(LC): UT Appeal Discretion W Windermere Marina Village Ltd v Wild [2014] UKUT 0163 (LC): Service Charge Determination Of A Third Party March 2014: Cases A, B, C, D, F & J A Albion Residential Ltd v Albion Riverside Residents RTM Company Ltd [2014] UKUT 6: Building Structure Assethold Ltd v 13-24 Romside Place RTM Co Ltd [2013] UKUT 603 (LC): RTM Invalid Assethold Ltd v 7 Sunny Gardens RTM Company Ltd [2013] UKUT 509 (LC): RTM Participation Notice Avon Freeholds Ltd v Regent Court RTM Co Ltd [2013] UKUT 213 (LC); [2013] L. & T.R. 23: RTM Entitled B Blackpool BC v Cargill [2013] UKUT 0377 (LC): Service Charges C Conway v Jam Factory Freehold Limited [2013] UKUT 0592 (LC): Court-Appointed Management Cullen v Barnard Lodge Management Limited [2013] UKUT 0493 (LC): No Appeal D Di Marco v Morshead Mansions Ltd [2014] EWCA Civ 96: No Civil Remedy F Fairhold Mercury Ltd v HQ (Block 1) Action Management Co Ltd [2013] UKUT 487 (LC) RTM: Omission Of Letters Fairhold Mercury Ltd v HQ (Block 1) Action Management Co Ltd [2013] UKUT 487 (LC): FTT Speed Of Appeals Fairhold (Yorkshire) Ltd v Trinity Wharf (SE16) RTM Co Ltd [2013] UKUT 502 (LC): RTM Counter Notice Forest House Estates Ltd v Dakhil Allah R Al-Harthi [2013] UKUT 479 (LC): Breach Determination J Jastrzembski v Westminster City Council [2013] UKUT 0284 (LC): Landlord Address & s20 Notice March 2014: Cases L, M, N, P & S L London Borough of Southwark v Woelke [2013] UKUT 0349(LC): Unrecoverable Landlord Costs M MacGregor v BM Samuels Finance Group Ltd [2013] UKUT 471 (LC): UT Appeal Decision N No.1 Deansgate (Residential) Ltd v No.1 Deansgate RTM Co Ltd [2013] UKUT 580 (LC): Building Structure Ninety Broomfield Road RTM Co Ltd v Triplerose Ltd [2013] UKUT 606 (LC): RTM Co & Buildings P PAS Property Services Ltd v Hayes [2014] UKUT 26: Unrecoverable Costs S Southern Land Securities Ltd v Hodge [2013] UKUT 480 (LC): s20 Notice March 2014: Cases O, P & S O OM Property Management Ltd [2014] UKUT 9: Consultation Breach November 2013: Case C C Cullen v Barnard Lodge Management Limited [2013] UKUT 0493 (LC): No Appeal October 2013: Case L L London Borough of Southwark v Benz [2013] UKUT 0375 (LC): LA Landlord Indirect Costs London Borough of Southwark v Paul & Benz [2013] UKUT 0375 (LC): LA Indirect Costs September 2013: Cases A-J A Arnold v Britton [2013] EWCA Civ 902: Service Charge Clause Interpretation B BDW Trading Ltd v South Anglia Housing Ltd [2013] EWHC 2169 (Ch): QLTA & Unconstructed/Let Buildlings D Daejan Investments Ltd v Benson [2013] UKSC 54: Addendum Judgment J Jastrzembski v Westminster City Council [2013] UKUT 0284 (LC) July 2013: Cases M-R M Moorings (Bournemouth) Ltd v McNeill [2013] UKUT 243 (LC): Parking Restrictions & Administration Charges R R (on the application of Spaul) v Upper Tribunal (Administrative Appeals Chamber), Unreported, 22 May 2013 (QB) (Leggatt J): Appeal Permission Refused June 2013: Cases C-D C Cussens v Realreed Limited [2013] EWHC 1229 (QB): Covenant Breach D Di Marco v Morshead Mansions Ltd [2013] EWHC 1068 (Ch): Landlord Information To Tenants May 2013 Cases A-J A Arnold v Britten [2012] EWHC 3451 (Ch): Service Charge Clause Construction (profit) B Birmingham City Council v Keddie [2012] UKUT 323 (LC) & Crosspite Ltd v Sachdev [2012] UKUT 321 (LC): Brickfield Properties Limited v Botten [2013] UKUT 0133 (LC): Lease Variations Burr v OM Property Management Limited [2013] EWCA Civ 479 : Incurred Costs D Daejan Investments Ltd v Benson [2013] UKSC 14; [2013] 1 W.L.R. 854: s20 Dispensation Di Marco v Morshead Mansions Ltd [2013] EWHC 1068 (Ch): Service Charge Info and Inspection C Campbell v Daejan Properties Ltd [2012] EWCA Civ 5103: Clause Construction ('premises' means 'house') Carey-Morgan v de Walden [2013] UKUT 0134 (LC): Forfeiture Threat for Breach of Covenant Cussens v Realreed Limited [2013] EWHC 1229 (QB): County Court Jurisdiction for Covenant Breaches H Hillfinch Properties Ltd v Lessees of Southbourne Court [2013] UKUT 096 (LC): Works Affordability J Johnson v County Bideford [2012] UKUT 457 (LC): Validity of a Service Charge Demand Cases M-T M Moorings (Bournemouth) Ltd v McNeill [2013] UKUT 243 (LC): Parking Scheme Validity Morshead Mansions Ltd v Mactra Properties Ltd [2013] EWHC 224 (Ch): Service Charge Accounts P Phillips v Francis [2012] EWHC 3650 (Ch D): Meaning of Qualifying Works R R (on the application of Spaul) v Upper Tribunal (Administrative Appeals Chamber), Unreported, 22 May 2013 (QB) (Leggatt J): Reasonableness of Major Works Costs S Sadd v Brown [2012] UKUT 438 (LC): Insurance Premium Recovery T Tobicon Limited v Collinson [2013] UKUT 047(LC): Liability to Pay Triplerose Ltd v Grantglen Ltd [2012] UKUT 204 (LC): Landlord Identification April 2013: Cases B-T B Brickfield Properties Limited v Botten [2013] UKUT 0133 (LC) C Carey-Morgan v de Walden [2013] UKUT 0134 (LC) D Daejan Investments Ltd v Benson [2013] UKSC 14; [2013] 1 W.L.R. 854 H Hillfinch Properties Ltd v Lessees of Southbourne Court [2013] UKUT 096 (LC) T Tobicon Limited v Collinson [2013] UKUT 047(LC) March 2013 Morshead Mansions Ltd v Mactra Properties Ltd [2013] EWHC 224 (Ch) February 2013 Sadd v Brown [2012] UKUT 438 (LC) January 2013 Johnson v County Bideford [2012] UKUT 457 (LC) Phillips v Francis [2012] EWHC 3650 (Ch D) December 2012 Arnold v Britten [2012] EWHC 3451 (Ch) Campbell v Daejan Properties Ltd [2012] EWCA Civ 5103 November 2012 Birmingham City Council v Keddie [2012] UKUT 323 (LC) & Crosspite Ltd v Sachdev [2012] UKUT 321 (LC) September 2012 Peverel Properties Limited, Peverel OM Limited v Hughes [2012] UKUT 258 (LC) March 2014: Cases L-S Contributors Chartered Valuation Surveyors Brett Williams: CP Bigwood Exceptions To The Rule For Freehold Sales myleasehold Buying Freeholds & Lease Extensions From Local Authorities Leasehold Services ALEP: Why Weren't We Offered The Right Of First Refusal? Bob Smytherman: Chairman Of The FPRA Baroness Gardner & The Housing Strategy Debate Could This Be The Next Big Scandal Facing Leaseholders? FPRA Launches New Members Area Is RTM Always Right For Leaseholders? Impact Of Green Deal On Blocks Of Flats Leasehold Reform? Law Commissioner Says No! Colin Stokes: adiuvo Providing Leaseholder Support 24/7 Dudley Joiner: RTM Federation Right To Manage: Truly The Way Forward? James Butler: Landmark Lease Advisory Services How Landmark Lease Started Nicholas Kissen: LEASE Warning to Freeholders: Consult Carefully Over Section 20 Nigel Wilkins: CARL Chairman Key Objectives For Leasehold Reform Service Charge Help Freehold Rent Charges Is RTM Right For You? Parking Enforcement Setting a Service Charge Budget Local Authorities & Private Landlords Damon Thomas: Fast Trak Solutions Private and Social Landlord Issues: A Combined Solution? Managing Agents James Cook: Your Home Property Management Why Is The Leasehold Sector So Complicated? Are Some UK Property Managers Too Big To Care? Why Health & Safety Trumps A Striped Lawn! How To Change Your Property Manager Leaseholders: How To Stay Put And Add Value Solicitors Chris Alexander: SA Law LLP Am I Liable For Service Charge Arrears Which Pre-Date My Purchase? Old & New Leases: The Subtle Difference Christopher Bernard & Shamin Kashem: HPLP Solicitors What To Do About Squatters Joint Ownership & Transfer Of Equity How To Buy The Freehold When The Landlord Is Resident David Whitney: Painsmith Solicitors How Are Lease Extensions Valued? Lease Forfeiture For Breach Of Covenant Recovering Insurance Premiums: Always Check The Lease! The Thorny Issue of Buildings Insurance Graham Jaffe: JPC Law Acquiring The Freehold From A Dissolved Company Can We Buy The Freehold? Katie Cohen: Child & Child Acquiring The Freehold From A Bankrupt Individual Bankrupt Individual Freeholder Laura Severn: Brady Solicitors Demands For Service Charge Payments: It's All In The Detail! No Dogs Allowed! It's A Risky Business! A Brief Guide To Directors & Officers Insurance Mark Chick: Bishop & Sewell LLP Commonhold: What Is It? Could We Covert To It? Leasehold Reform Amendment Act 2014: Q&A Serving Notice Of Enfranchisement Under The 1993 Act Property & Construction Malcolm Thomas: Property Tectonics Fire Safety In Residential & Commercial Buildings Legislation BAILII: British & Irish Legal Information Institute Full UK Legislation The PRS Access, Fitness & Safety Of Properties Condensation & Damp Electrical Safety Building Regulations 2010: Approved Electrical Safety Document P Electrical Safety & Approved Codes of Practice Electrical Safety First Energy Performance Certificates EPC Register Fire Safety & Smoke Detectors Building Regulations 2010: Fire Safety Approved Document B Gas/Carbon Monoxide Safety Gas Safe Register HHSRS (Housing Health & Safety Ratings System) Accreditation, Codes Of Practice, Guides & Trade Bodies Associaton Of Residential Letting Agents (ARLA) Code Of Practice Fifty (and a half) Killer Tips For Landlords How To Rent: The Checklist For Renting In England Landlord Lifecycle Guide National Association Of Estate Agents (NAEA) National Landlords Association (NLA) Accreditation Scheme Code Of Practice Private Rented Sector Code Of Practice Renting Property Guide: Homestamp Residential Landlords Association Accreditation Scheme Royal Institute Of Chartered Surveyors (RICS) SAFEagent Assured Shorthold Tenancies Housing Benefit & Local Housing Allowance Local Housing Allowance Guidance Manual Pre-Tenancy Application Repossession Under s21 (no tenant breaches) Repossession Under Specific Grounds (tenant breaches) Suspended Possession & Hearing Adjournments Tenant Deposit Protection Deposit Protection Service Tenancy Deposit Solutions Ltd (trading as mydeposits) The Dispute Service Housing The Homeless Direct Lettings Scheme Homeless Code Of Guidance For Local Authorities Homelessness Code Supplementary Guidance On Intentional Homelessness Private Sector Leasing Immigration Checks Key Legislation Anti-Social Behaviour Act, Crime & Policing Act 2014 Localism Act 2011 The Housing (Tenancy Deposits) (Prescribed Information) Order 2007 Housing Act 2004 The Unfair Terms In Consumer Contracts Regulations 1999 The Gas Safety (Installation & Use) Regulations 1998 The Electrical Equipment (Safety) Regulations 1994 The Furniture (Furnishings) (Fire) (Safety) Regulations 1988 Housing Act 1988 Landlord & Tenant Act 1985 Protection From Eviction Act 1977 Non-UK Resident Landlords The Non-Resident Landlord Scheme Landlord Insurances Landord Mortgage Default & LPA Receivers HousingRepossessions Permission To Sublet: What Does The Lease Say? Letting Agent Redress From 1st October Referencing Services Landlord Referencing Services RentChecks RentReferee Sector Reports & Reviews Generation Rent Rent Reform: Making London's PRS Fit for Purpose Review Of Property Conditions In The Private Rental Sector (February 2014) The Rugg Review UK Migrants & The PRS Understanding Landlords Home
Articles	Katie Cohen & Graham Jaffe of JPC Law: Acquiring the Freehold from a Dissolved Company It can be a nightmare for a lessee to discover that their freeholder is a company which has been dissolved. Ascertaining the best way to acquire the freehold requires the assistance of a solicitor with the relevant expertise. The following article has been reproduced by kind permission of the authors, Katie Cohen (a former Partner) and Graham Jaffe, Partner at JPC Law. The article first appeared in the Property Law Newsletter, October 2010.
There are two scenarios that are discussed below. The first is where the freehold is owned by a company that has been dissolved. In this scenario, the freehold may be acquired under the rules of Bona Vacantia. In such a case where the company is incorporated in England and Wales and in the case of some Commonwealth countries such as the British Virgin Islands, the freehold is vested in the Crown under the rules of Bona Vacantia.The second is where the lessees are directors and/or shareholders of a company which owns the freehold through a company which has been dissolved. The freehold may be acquired under the rules of administrative restoration.Bona Vacantia Where the freehold is owned by a company that has been dissolved, the lessees can acquire the freehold from the Treasury Solicitor. Under section 27(5) of the Land Registration Act 2002, if the company owned asset(s) at the time of its dissolution, all of its property rights (but not its liabilities) will have passed in bona vacantia and vest in the Crown.Bona vacantia means “vacant goods” and its origins lies in common law. It is based on the principle that all freehold estates originally came from the Crown, and therefore if there is no one legally entitled to the freehold, it reverts to the Crown. Note that property that is held on trust for another does not pass to the Crown as bona vacantia.The Crown (acting by the Treasury Solicitor) is not obliged to register itself as the proprietor of property which vests in it as bona vacantia and indeed, does not normally do so.The companies group of the bona vacantia division of the Treasury Solicitor’s office deals with property and rights that were beneficially owned by companies which have now been dissolved. When a company is dissolved any assets owned by the company at the date of its dissolution pass to the Crown under section 654 of the Companies Act 1985. If the company was dissolved after 1 October 2009, the assets vest in the Crown under section 1012 of the Companies Act 2006.Upon request, the Treasury Solicitor will confirm that the company’s assets have vested in the Crown and will set out detailed requirements for the acquisition of the freehold. This will include the submission of a questionnaire giving details of ground rent payable under the leases, names of the lessees, how many are willing to participate in the acquisition and the premium that will be payable to the Treasury Solicitor for the freehold. Lessees are liable to pay the costs of the Treasury Solicitor which usually amount to around £500 plus VAT. The Treasury Solicitor is obliged to realise the full market value of the property on a sale and will usually seek independent advice from the district valuer in order to achieve the best possible price.Note that the Treasury Solicitor is not obliged to take possession of the property, manage the property or transfer the property with any form of title guarantee.If lessees follow this option they will need to form a new company to acquire the freehold and an accountant should be appointed to act for the company. Administrative Restoration The second option is to reinstate the company that owns the freehold when the lessees are directors and/or shareholders who have, for one reason or another, allowed the company to become dissolved and struck off the register. The Companies Act 2006 created a procedure whereby dissolving companies may be re-instated to the Register by means of a simplified and faster procedure which allows for a direct application to be made to Companies House as opposed to the High Court. The procedure is set out in sections 1024 to 1028 and has no parallel in the Companies Act 1985.There are several conditions which must be met before the Registrar will restore the company. If the registrar decides not to restore the company, an application may then still be made to the Court for restoration. The procedure is called administrative restoration and involves three key conditions that must be met if the Registrar is to consider the application.
Only a former director or former member of the company, who was a director or member at the time the company was dissolved, can apply.The lessees will need to appoint an accountant to assist them in satisfying condition 3 and this will include setting up the statutory books, issuing share certificates, filing return of allotments and bringing the accounts up to date.The application for administrative restoration must also be accompanied with a statement of compliance which will confirm that the above conditions have been complied with and that the lessees have the standing to make the application. The application is made using form RT01 and the fee is £100.00. In addition the Treasury Solicitor may demand costs or expenses for their work undertaken. The Companies House Registrar may also demand any unpaid penalties outstanding on accounts delivered late before the company was struck off as well as any penalties due for accounts delivered on restoration. The late filing penalty is dependent on how late the accounts are received by the Registrar. The Registrar will normally disregard the period during which the company was dissolved. For example, a set of accounts that should have been delivered 2 months before a private company was dissolved are normally regarded as 2 months late if you deliver them on restoration. The company will not be deemed liable for late filling penalties for accounts received on restoration but which became due while the company was dissolved. The following table provided by Companies House exhibits the potential level of penalty that may be payable.
Length of delay (measured fromthe date the accounts are due)
In accordance with section 1024 of the Companies Act 2006, an application to the Registrar for administrative restoration may be made until six years after the dissolution.The general effect of restoration of a company to a register is that it is deemed to have continued in existence as if it had not dissolved or struck off.Alternatively if the lessees cannot meet the conditions to satisfy the Companies House registrar, an application can be made directly to the High Court for restoration of the company. Naturally the costs will differ; the court application fee is £130.00 and our costs will also need to be taken into consideration in compiling the court application.Which option is best?This will depend on whether the lessees are directors and/or shareholders of the company that owns the freehold. If they are, they can reinstate the company via administrative restoration or the rules of bona vacantia. If the lessees are not directors and/or shareholders, the only option is bona vacantia.Both methods can be relatively quick so long as all information required by either the Treasury Solicitor or the Company’s Registrar is made available.Note that it is not possible to restore a company to the Register for the purposes of “retrieving” property that has become bona vacantia, if the company was struck off the register more than six years before the date of application for restoration. It is essential therefore to ascertain when the company was struck off as this may well determine which route is taken.In any event, remember that lessees will need to contact the Treasury Solicitor in the first instance even if they decide to progress under the rules of administrative restoration.In the complex minefield of dissolved companies and their freeholds, it goes without saying that you should instruct those with the expertise to property advise.
www.jpclaw.co.ukEnfranchisement Department
Graham JaffePartnerJaffe Porter Crossick LLPThis email address is being protected from spambots. You need JavaScript enabled to view it.
Katie CohenPartnerJaffe Porter Crossick LLPThis email address is being protected from spambots. You need JavaScript enabled to view it.
Category: Guest Contributors: Bio & Articles	Disclaimer
Owning & Managing Blocks Of Private Flats
A Short History Of Long LeaseholdBuildings InsuranceCommon Area Health, Safety, Maintenance & RepairsDefective Leases & Lease VariationsFirst Tier Tribunal (Property Chamber) & Alternative Dispute ResolutionForfeiture: Taking Back Property Before The End Of The LeaseFreeholdersGround RentLease ExtensionsLeasehold Management Acts Of ParliamentLeaseholder Resident Management CompaniesResidents AssociationsSubletting Consent: What Does The Lease SayService Charges & The Role Of The Managing AgentTo Audit Or Replace Managing Agents/Freehold Owners?What Do Adminstration Charges Cover?	Copyright © 2008-2014. S. Crossland AIRPM. All rights reserved.