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Property businesses have experienced unparalleled challenges due to the effects of Covid-19 on tenants and overall property demand. In this era where nothing in business is certain, and bespoke measures such as the ban on lease forfeiture effectively tie your hands as a landlord, property business liquidation advice is crucial.
If you run a property business and you fear liquidation may be your only option, it’s vital to seek professional insolvency help. You may discover that your business can be rescued and that there’s potential for it to continue in trade, albeit within a changed operational structure, or even that the business could be sold.
Insolvency is an extremely serious situation that needs to be carefully managed. Although liquidation would ultimately mean the end for your business, by securing reliable advice you gain peace of mind that the steps taken are the most appropriate.
The original ban on lease forfeiture was introduced as a short-term solution to widespread financial decline among individual and commercial tenants, and has safeguarded those tenants to great effect.
The legislation has created extreme financial pressure for landlords, however, who for almost a year have had to continue meeting their liabilities with no incoming rents. Property management companies have also seen a steep decline due to Covid-19.
Demand for commercial property, in particular, has considerably reduced as large numbers of people work from home, leaving the property business sector as a whole struggling to survive.
So what are the potential outcomes if you run a property business and fear that it may be liquidated? Here are a few possible routes away from liquidation that might be appropriate for your business, and some reliable property business liquidation advice.
Concerned about National Living Wage and NI increases?
With the rates of both National Living Wage and employer National Insurance Contributions increasing in recent years, this additional cost of employing staff has added more pressure onto already squeezed cash flows. If you are worried about the impact this is having on your company's finances, talk to the experts at UK Liquidators. As licensed insolvency practitioners we can explain your options and help you plot a way forward. Call today on 0808 253 9878.
The Creditors’ Voluntary Liquidation (CVL) process enables directors to take the initiative and place their company into liquidation. Not only does this protect creditor interests, as is required by law, but it can also enable directors to claim statutory redundancy pay.
If you’ve worked as an employee for your company as well as being a director, you may be able to claim redundancy and other statutory entitlements, and we can provide further tailored advice on your eligibility.
The CVL process itself involves selling all company assets and distributing the proceeds amongst creditors in the statutory order. As a property business, any assets secured against borrowing will be repossessed by the lender so they can recoup their money.
When all debts are repaid as far as funds allow, the company is removed from the register at Companies House and ceases to exist. But could any alternatives to liquidation lead the company to better times? What could you do to save your property business from liquidation?
Start your online liquidation today
If you have decided liquidation is the right option for your limited company, you can take the first step and begin the process online using our online portal. Starting the process is quick, simple, and can be done at a time that suits you. Your information will be submitted to your local UK Liquidators insolvency practitioner who will be with you every step of the way. Click here to start your company’s liquidation online.
Informal measures, such as restructuring the company so that it benefits from additional cash flow, can improve your trading situation and allow the business to continue. This might involve using property assets to generate funding, for example, or selling off/ceasing loss-making areas of the business.
Formal insolvency measures may also be suitable, and these can include Company Voluntary Arrangements. CVAs restructure your debts so that the company makes a single monthly repayment, distributed in the agreed proportion laid out in the arrangement.
Company administration is another route than might help you avoid liquidation. It provides an eight-week ‘breathing space’ where creditors cannot begin or continue any legal action against the company.
UK Liquidators will provide the trustworthy property business liquidation advice you need. We have extensive experience of helping business owners to voluntarily place their company into liquidation, and can also advise on claiming director redundancy. Please contact one of our partner-led team to arrange a free, same-day consultation – we operate a broad network of offices throughout the country.
Insolvency & Restructuring Expert
Jonathan is a Partner at Real Business Rescue and member of both the Insolvency Practitioners Association (MIPA) and The Association of Business Recovery Professionals (MABRP). Jonathan has over 20 years’ experience guiding directors through CVL and MVL processes, helping them understand their options and navigate financial distress with clarity and compassion.
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