Cecily Crampin & Tricia Hemans investigate reviving disclaimed property
- One of the effects of the COVID-19 distancing measures and their impact on the economy is an increase in cases of insolvency.
- Attempts to disclaim onerous property will no doubt become increasingly common.
- The law on disclaimer, and, in light of Leon v Attorney General, who has standing to apply for a vesting order to bring disclaimed property back to economic life.
Sadly, one of the likely effects of the COVID-19 precautions, and their impact on the economy, is an increase in insolvency, despite the government’s intended relief under the Corporate Insolvency and Governance Act 2020. A particular issue will be businesses unable to pay rent due under commercial leases. In the eyes of insolvency practitioners, leases will be onerous property ripe for disclaimer. Similarly, companies on the brink of dissolution may choose to leave property to go bona vacantia, with the risk of eventual Crown disclaimer. This article reviews the law on disclaimer, and, with reference to Leon v Attorney General [2019] EWCA Civ 2047
