Managing insolvency

Surveyors will often be asked to act in relation to transactions with an insolvency element – for example, advising a lender or insolvency practitioner in relation to the management and realisation of property on a distressed basis, advising parties who are in financial distress and dealing with insolvent counterparties.

The principle of the legislation in this area is to ensure equal treatment of creditors and, if possible, to promote a culture of rescue – and there are often important legal protections for insolvent entities that may override the terms of any contract or lease to which they are a party.

This section is a guide to surveyors who are called on to advise in insolvency situations and landlords who are faced with tenant insolvency. It covers all areas of instruction, including:

In addition to receivers/insolvency practitioners appointed in respect of a property or an insolvent entity, mortgagees often have their own ability to sell the secured property pursuant to the terms of the mortgage/charge. This tends to be rare, as the secured lender prefers the 'risk break' it enjoys if a receiver or insolvency practitioner deals with the asset.

This section is maintained by Carly Schiff and Stewart Perry of Fieldfisher LLP.