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How to buy commercial property from an insolvent company
Property is usually the most valuable thing a failed company owns, and it holds its value better than any other asset in an insolvency. If you buy property, an insolvency sale can be one of the best routes to a keen price, provided you handle the charges and the due diligence properly.
Last updated 2026-09-17.
When a company that owns commercial property fails, that property has to be sold. Unlike stock or plant, property tends to recover close to its market value, so it is not usually a fire sale bargain, but the seller is motivated, the timescale is real, and a well prepared buyer can do a clean deal at a fair price. The key is understanding who is selling, what sits over the property, and what you are and are not getting.
Who is selling
Property owned by an insolvent company is sold by the appointed office holder, the liquidator or administrator. Where the property is charged to a lender, a receiver appointed by that lender may sell it instead, acting for the lender rather than the creditors as a whole. Either way you deal with the appointed office holder, never the former company or its directors, who no longer have any power to sell it. Find out who is appointed before you do anything else.
See the property and the charges on a company
Open a company on Insolvency Tracker to read its registered charges and its asset assessment, so you know what property it holds, who has security over it, and who to approach.
The charges that sit over the property
Commercial property owned by a company is very often subject to a fixed charge from a lender, registered against the company. That charge holder has a prior claim on the sale proceeds, so on completion the charge normally has to be redeemed, meaning the lender is paid what it is owed from the money you pay. This is not a problem in itself, it is how most of these sales work, but you need to know the charge is there, who holds it, and that it can be released so you get clean title. Our guide on fixed and floating charges explains how this works.
What you are buying, and what you are not
Insolvency property sales are usually on limited terms. The office holder sells with reduced warranties and limited replies to the usual enquiries, because they were not the ones running the property and cannot answer for its history. That shifts more of the risk onto you, so your own due diligence carries the weight. Expect little protection if something turns up later that a normal seller would have warranted, and price that risk in.
Doing your due diligence
Because you get fewer warranties, you check more yourself. Instruct a solicitor early to handle the title, the charges and the contract, because these sales have their own conventions and a normal conveyance approach will not fit. Get your own survey and valuation. Establish the tenure, whether freehold or leasehold, and for leasehold the terms and any arrears. Check for tenants in occupation and the leases they hold, planning and use, business rates, and any environmental or structural issues. None of this is advice on your specific purchase, so take proper professional advice before you commit.
How to approach it
Register your interest with the appointed office holder or the agent handling the sale, show you are funded and ready, and be clear on your timescale. Property sales can go to informal tender or to a set marketing period, so find out how this one is being run and when offers are due. Move at the pace the process demands, and have your solicitor and funding lined up so you can complete when the time comes. Our guides on contacting the office holder and buying assets from a company in liquidation cover the approach.
Find property coming to market
Browse UK companies in an insolvency process, open the ones likely to own property, and see the charges and the office holder to approach.
Common questions
Can you buy property from a company in liquidation?
Yes. Property owned by an insolvent company is sold by the appointed office holder, or by a receiver appointed by a secured lender, to raise money for creditors. It is one of the most valuable assets to come out of an insolvency.
Who sells the property?
The appointed liquidator or administrator, or a receiver appointed by the lender that holds a charge over the property. You deal with that office holder, not the former company or its directors.
Do you get clean title?
Often the sale is on limited terms, with reduced warranties, and the property is usually subject to a charge that must be dealt with on completion. Proper legal due diligence is essential, so always instruct a solicitor.
Company information, not advice. Always instruct a solicitor and take professional advice before buying property.