Operation of Scottish commercial leases in tenant and landlord insolvency: irritancy, landlord’s hypothec, administration, liquidation, receivership, sequestration, CVAs, moratoria, rent as expenses, assignation/renunciation

Published by a LexisNexis Property expert

Practice notes

What effect does insolvency have on the operation of a lease?

This Practice Note explores how insolvency influences the day-to-day operation of a lease and addresses the principal concerns that commonly emerge when an insolvency practitioner (IP) becomes involved in the landlord and tenant relationship for commercial premises...

Types of insolvency process

The relevant insolvency procedure is determined by the tenant’s location (for a corporate entity, its registered office), rather than the situs of the leased property. For the purposes of this Practice Note, it is assumed that the landlord and tenant are both based in Scotland and that Scots law governs the lease. The main formal insolvency procedures in Scotland are summarised below...

Corporate Administration

Administration offers a framework designed to enable the rescue of an insolvent company. An administrator is appointed and, while the company remains in existence, it acts through that administrator. Appointment can be made by an administrative order or, on an out of court basis, by the holder of a qualifying floating charge, the directors, or the company (ie the shareholders). For further information about the procedure, see Practice Note:...

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Craig Falconer

Addleshaw Goddard

Craig is an Associate in the Finance and Projects Division of Addleshaw Goddard LLP. With a commercial real estate background, Craig focusses on all aspects of distressed real estate, acting for lenders, insolvency practitioners and corporates in connection with the acquisition, management and sale of distressed property and has been involved in a number of large portfolio sales. Craig also regularly advises lenders, investors and corporates on all aspects of real estate finance projects....

Web page updated on 21/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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