David Gilmour, the legendary Pink Floyd bassist, recently encountered an unexpected shock when he attempted to sell a £10 million property he owned in Hove. It turned out that the property had been forfeited to the Crown in 2014 after the company that owned it weas dissolved. Under UK law, assets held by dissolved companies are deemed bona vacantia — “ownerless goods” and revert to the Crown.

For property owners using corporate structures, this incident underscores the importance of staying vigilant to avoid a similar fate. Here’s what you need to know about bona vacantia and how to ensure your assets don’t slip away unnoticed.

What is Bona Vacantia?
Bona vacantia is a legal term meaning assets without a legal owner. In the UK, when a company is dissolved, any assets it owns automatically pass to the Crown under the Companies Act 2006. This could include cash, real estate, or other valuable assets. Because the company no longer exists to hold them, these assets are legally considered “ownerless” and are retained by the state.

Why Did This Happen to David Gilmour’s Property?
In Gilmour’s case, the property was held in a company structure. When this company was dissolved due to an administrative error (potentially due to administrative oversights like missing filing deadlines), it ceased to legally exist. As a result, the property ownership reverted to the Crown as bona vacantia, effectively removing it from Gilmour’s control and ownership. Now, Gilmour is reportedly pursuing legal action against the Crown to reclaim his property, a process that will likely be complex and uncertain.

This case underscores the importance of meticulous corporate management for anyone holding property in a company structure.

How to Avoid Losing Your Assets to Bona Vacantia
To protect your assets, consider the following steps:

  1. Stay On Top Of Company Compliance: Ensure all filings, annual returns, and fees are up to date. Regular compliance checks can prevent accidental dissolution due to missed administrative requirements.
  2. Maintain Active Oversight: If you’re holding property in a corporate structure, especially one that’s dormant, check in periodically to confirm it remains active. This is especially crucial for holding companies set up solely to manage assets.
  3. Consider Alterative Ownership Structures: If managing a company proves too burdensome, consider transferring ownership of key assets to a trust or individual ownership, which won’t be affected by company dissolution.
  4. Seek Legal Advice: If you’re concerned about asset protection, consult with a property lawyer or corporate law specialist who can advise on the best strategies to secure your assets.

Final Thoughts
While it may be possible to reclaim assets from the Crown after a company’s dissolution, the process becomes significantly more complicated over time. David Gilmour’s case serves as a cautionary tale for anyone holding valuable assets through a corporate entity.

By remaining vigilant and proactive, you can protect your property from slipping into bona vacantia and avoid a situation where recovery is uncertain or even impossible.

At Lewis Denley, our Commercial Property team combines deep expertise with innovative solutions to help clients secure their property portfolios and navigate complex ownership structures. Whether you need advice on leases, company owned property, or alternative ownership strategies, we’re here to assist. Contact us today to ensure your property remains in safe hands.