MARCH 2010



31.11.1 Introduction

This chapter brings together advice and information relating to solely owned property of which the bankrupt is a landlord. The chapter does not intend to be an exhaustive account of dealing with every possible scenario which may be encountered when dealing with tenanted property but does provide information relating to those situations that the official receiver is most likely to encounter. Unless stated otherwise, the tenancies discussed in this chapter are assured shorthold tenancies (see paragraph 31.11.17).  Part 4 provides some guidance on unusual situations.

This chapter deals with bankruptcy cases only, and does not specifically refer to company cases, although the guidance within will generally apply to such cases. See Part 4 for some further information on company cases.  

Guidance on dealing with commercial property owned by the bankrupt, or a company, is dealt with in Chapter 31.3 – Freehold and Leasehold Property. Guidance on dealing with the bankrupt’s interest in property used as his/her own residence is given in Chapter 31.3, Part 3 –The Bankrupt’s Interest in the Family Home.

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 31.3, Part 3. Transitional provisions apply where the petition was presented prior to that date. That guidance applies even where the property is rented, and occupied, by the bankrupt and is the sole or principal residence on a tenancy agreement to that person.


The chapter is divided into parts as follows:

Part 1 – Dealing with solely owned tenanted properties where official receiver is receiver and manager (paragraphs 31.11.2 to 31.11.62)

Part 2 – Official receiver as trustee and landlord (paragraphs 31.11.63 to 31.11.134)

Part 3 – Disposal or ending of an assured shorthold tenancy agreement (paragraphs 31.11.135 to 31.11.208)

Part 4 – Unusual circumstances (paragraphs 31.11.209 to 31.11.237)


In addition, the following annexes:

Annex A – Flowchart of process of dealing with solely owned tenanted property

Annex B – PowerPoint presentation of training provided by Technical Section in relation to tenanted properties

Annex C – Initial questionnaire

Annex D – Initial letter to bankrupt

Annex E – Initial letter to tenant

Annex F – Initial letter to mortgagee

Annex G – Initial letter to letting agent

Annex H – Initial letter to deposit holder (custodial scheme)

Annex I – Initial letter to deposit holder (insurance based scheme)

Annex J – Trustee letter to bankrupt (amended July 2013)

Annex K – Trustee letter to tenant (with agent) (amended July 2013)

Annex L – Trustee letter to tenant (no agent)

Annex M – Trustee letter to mortgagee

Annex N – Trustee letter to letting agent

Annex N2 Trustee letter of instruction to new letting agent (inserted July 2013)

Annex O – Trustee letter to deposit holder (custodial scheme)

Annex P – Trustee letter to deposit holder (insurance based scheme)

Annex Q – Trustee letter to bankrupt to accompany disclaimer (inserted July 2013)

Annex R – Trustee letter to tenant to accompany disclaimer (inserted July 2013)


The following abbreviations are used in this chapter;

AST – Assured shorthold tenancy agreement

IPA/O – Income payments agreement/order

HMO – House of multiple occupancy

BRO – Bankruptcy restriction order


[On to Part 1 – Official receiver as receiver and manager]