Bona Vacantia: Securing your freehold interest

Freehold interests become Bona Vacantia when the company that owned the freehold is dissolved without a clear successor or transfer of ownership. This often happens if the freeholder company fails to file necessary documents or ceases operations. When such a dissolution occurs, the freehold is no longer attached to an active company and is thus claimed by the Crown, with the Treasury Solicitor’s Department stepping in to manage the asset.

The treasury solicitor’s department (acting as the Bona Vacantia Division) is responsible for dealing with ownerless assets that revert to the Crown. In this capacity, they hold the freehold interest and can sell it to interested parties, such as the leaseholders of the property in question. This process offers leaseholders an opportunity to secure the freehold, giving them greater control over the management of their property and potentially increasing its value.

The Crown may not actively manage the property or enforce certain rights under the lease. However, leaseholders are still bound to the terms of their leases.

For leaseholders, the freehold being deemed Bona Vacantia can impact service charges, management control, and long-term planning for property maintenance. Without action, the property remains under the Crown’s management, which may not align with leaseholders’ interests or plans for future improvements. Reacquiring the freehold can remove these uncertainties, allowing leaseholders to take charge of their building’s management and any strategic property decisions.

If leaseholders wish to extend their lease or collectively purchase the freehold (enfranchisement), dealing with the Crown can be more complex. The Crown typically does not voluntarily sell bona vacantia freeholds unless legally required to do so.

Leaseholders have two primary options when dealing with a Bona Vacantia freehold:

1. Direct purchase from the treasury solicitor: The most common route is for leaseholders to approach the Treasury Solicitor’s Department and negotiate the purchase of the freehold interest. This often involves presenting an offer and navigating the required paperwork and procedures with professional guidance.
2. Court application: In cases where there is significant reversionary value in the freehold, it may be possible to apply to the court to acquire the freehold without paying full market consideration. This option can be complex and typically requires expert legal analysis to assess its viability.

Escheat occurs when a property lacks an identifiable owner, resulting in its automatic return to the Crown. Unlike Bona Vacantia, where the Treasury Solicitor can facilitate the sale of the freehold, escheat means that the property may remain dormant without active management or oversight.

For leaseholders, an escheated freehold presents unique challenges. Without reclaiming ownership, leaseholders might face difficulties with property management, decision-making, or planning for future development. The Crown does not actively manage escheated properties, which can lead to uncertainty and stalled progress for any maintenance or improvement plans.

Anthony Gold Solicitors are experienced in navigating the complexities associated with escheated freeholds. Our team helps leaseholders assess their options, including approaching the relevant Crown authority to negotiate the purchase of the freehold interest. This process can involve intricate legal steps, but with expert guidance, it is possible to regain control and ownership of the property.

We regularly act for leaseholders facing escheat scenarios and work to streamline the process of purchasing the interest back from the Crown. By understanding the unique challenges of escheat and offering strategic legal advice, we support clients in reclaiming their freehold, ensuring their property interests are protected and managed effectively.