JULY 2010



31.12.1 Introduction

This chapter provides guidance in respect of a property jointly owned by a bankrupt and another where the owners have entered into an assured shorthold tenancy (AST) agreement with a tenant or tenants in relation to the property. The chapter is not intended to be an exhaustive account dealing with every possible scenario which may be encountered when dealing with jointly owned tenanted property, but does provide information relating to those situations that the official receiver is most likely to encounter. Unless stated otherwise, the types of tenancies discussed are ASTs (see paragraph 31.12.7).  Part 5 provides some guidance on unusual situations.

The chapter assumes for simplicity that the property is jointly owned by two individuals. Where there are more than two joint owners of a property the guidance is equally applicable.  Guidance sometimes differs when both joint owners are bankrupt to when there is a remaining solvent joint owner. Where this is the case, it is made clear within the chapter.


31.12.2 Bankruptcy cases only

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 5 for some further information on company cases.  For information and guidance in relation to solely owned tenanted property, see Chapter 31.11.


31.12.3 Commercial property

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.


31.12.4 Family home

Where an individual was adjudged bankrupt on a petition presented on or after 1 April 2004, if 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. This guidance applies even where the property is the sole or principal residence held on a tenancy agreement by that person.


The chapter is divided into five parts as follows:

Part 1 – Dealing with jointly owned tenanted properties where the official receiver is receiver and manager (paragraphs 31.12.5 to 31.12.67)

Part 2 – Official receiver as trustee (paragraphs 31.12.68 to 31.12.122)

Part 3 – Calculating a bankrupt’s beneficial interest in a jointly owned tenanted property (paragraphs 31.12.123 to 31.12.150)

Part 4 – Jointly owned property - Disposal or ending of an assured shorthold tenancy agreement (paragraphs 31.12.151 to 31.12.209) and

Part 5 – Unusual circumstances (paragraphs 31.12.210 to 31.12.235)


In addition, information and guidance are contained in the following annexes:

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

Annex B – PowerPoint presentation of training in tenanted properties

Annex C – Initial questionnaire

Annex D – Initial letter to bankrupt

Annex E – Initial letter to tenant

Annex F – Initial letter to joint owner

Annex G – Initial letter to mortgagee

Annex H – Initial letter to letting agent

Annex I – Trustee letter to bankrupt

Annex J – Trustee letter to joint owner

Annex K – Trustee letter to mortgagee

Annex L – Trustee letter to letting agent


The following abbreviations are used in this chapter;

AST – Assured shorthold tenancy

IPA/O – Income payments agreement/order

HMO – House of multiple occupancy (see Part 5)



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