Termination of Tenancies for Tenant Default - Law Commission

(6) if the court dismisses an application to lift the stay, or no such application
is made during the period of the stay, the proceedings on the termination
claim shall come to an end.
8.32 We recommend that:
166
[Paragraph 5.47]
(1) on a termination claim made on the ground of a tenant default, the court
may order that the tenant’s interest in the demised premises be sold (an
order for sale);
(2) where a tenancy contains an absolute covenant not to assign the
demised premises, the court may not make an order for sale unless the
landlord consents;
(3) where a tenancy contains a covenant not to assign the demised
premises without the landlord’s consent, the court may not make an
order for sale unless either the landlord consents or the court is satisfied
that it would be unreasonable for the landlord not to consent; and
(4) where there is a charge on the tenant’s interest in the demised premises,
and the charge contains a covenant (whether absolute or qualified) not to
assign the demised premises, the court may not make an order for sale
unless the person who has the charge consents to the order.
8.33 We recommend that:
[Paragraph 5.71]
(1) if the court makes an order for sale, it must appoint a receiver to conduct
the sale;
(2) unless otherwise directed by the court, the proceeds of sale are to be
applied: first, in payment of any costs properly incurred by the receiver;
second in payment of any sum due to the landlord in connection with the
tenancy; and third, in payment of any sum secured by a qualifying
interest in the tenancy; and
(3) the remainder is to be paid to the tenant (that is, the person who was
tenant immediately before the sale).
[Paragraph 5.72]
8.34 We recommend that, where two or more persons constitute the tenant (or the
holder of a qualifying interest in the tenancy), the court may order that one or
more of them is to constitute the tenant (or the holder of the interest) from a date
specified in the order (a joint tenancy adjustment order).
[Paragraph 5.86]