CHAPTER 31.3

April 2013

DEALING WITH THE INSOLVENT’S FREEHOLD OR LEASEHOLD PROPERTY

31.3.1 Introduction

This chapter provides guidance to assist the official receiver when dealing with a freehold or leasehold property.  The guidance relating to the special provisions regarding the ‘family home’ formerly in Chapter 33 is now incorporated into this chapter.

A freehold or leasehold property will generally be the most valuable asset of an insolvent, and this chapter contains advice on protecting and realising the insolvent’s interest for the benefit of the estate.  The chapter also contains guidance to assist when dealing with a leased property.

The chapter is divided into thirteen Parts, as follows:

Part 1 – The insolvent’s freehold or leasehold property – general background and initial action to take (paragraphs 31.3.2 to 31.3.55)

Part 2 – Protection of the official receiver’s interest in a property (paragraphs 31.3.56 to 31.3.68)

Part 3 – The family home – bankruptcy only (paragraphs 31.3.69 to 31.3.93)

Part 4 – Valuation of the property and establishing the insolvent’s interest in the property – including equitable accounting (paragraphs 31.3.94 to 31.3.152)

Part 5 – Realisation of the insolvent’s interest in a property (paragraphs 31.3.153 to 31.3.195)

Part 6 – Low value homes – bankruptcy only (paragraphs 31.3.196 to 31.3.204)

Part 7 – Dealing with property with leaseholders (paragraphs 31.3.205 to 31.3.238)

Part 8 – Reviewing and dealing with a property at review stage – including the obtaining of a charging order (paragraphs 31.3.239 to 31.3.279)

Part 9 – Matrimonial or civil partnership proceedings – bankruptcy only (paragraphs 31.3.280 to 31.3.294)

Part 10 – Mortgage Rescue Scheme (paragraphs 31.3.295 to 31.3.316)

Part 11 – Sale and rent back schemes (paragraphs 31.3.317 to 31.3.328)

Part 12 – Shared ownership property (February 2014) (paragraphs 31.3.329 to 31.3.348a)

Part 13 – Leased commercial property (paragraphs 31.3.349 to 31.3.368)

The chapter also contains the following annexes:

Annex A – Instruction for drive-by valuation

Annex B – Worked example of equity of exoneration

Annex C – Details of solicitors appointed under property conveyancing scheme

The chapter contains the following abbreviations:

BRO  - Bankruptcy restriction order

CABx – Citizens Advice Bureaux

FSA – Financial Services Authority

MRS – Mortgage Rescue Scheme

[On to Part 1 – The insolvent’s freehold or leasehold property – general background and initial action to take]