Protection of supply where a landlord is insolvent
If your landlord becomes bankrupt, the official receiver (or an insolvency practitioner) automatically becomes landlord of the property upon his/her appointment as trustee of your landlord’s estate. You must be notified of this in writing. Questions about the supply should be directed to the trustee.1Insolvency Service, Technical Manual, Chapter 33, Part 11 Your fuel supply should be protected under special rules.2ss233, 233A, 372 and 372A IA 1986; Sch 2 GA 1986; Insolvency (Protection of Essential Supplies) Order 2015 SI 989 Where you have an agreement on something such as the heating system, the official receiver should obtain all documents relating to that agreement and consider continuing the agreement if the cost of doing so is not prohibitive. Where you have a long lease, the ‘leaseholders’ collective right of first refusal’ may arise.3Chapter 1 Part 1 Leasehold Reform, Housing and Urban Development Act 1993 This means that you have the right of first refusal and are given a chance to buy the property before it can be sold to a third party. This minimises the consequences of the landlord’s situation on you. Where the property contains two or more flats and you have a long lease, you have the power to serve notices on the official receiver requiring that certain actions are carried out.
The right of collective enfranchisement and the right to obtain a new lease are not exercisable by tenants with assured shorthold tenancies, but usually you are entitled to remain in the property if the fixed term has not yet expired. The trustee cannot force you out and a supplier should not disconnect supplies. However, a secured creditor (eg, a bank or lender who is mortgagee) may take its own possession action against you and the court may grant a possession order independently of the bankruptcy.
In Scotland, provision is made for the winding up of companies and registered social landlords under the Housing (Scotland) Act 2010 as amended by the Housing Amendment Scotland Act 2018.