Premises Licence Preservation in Insolvency
Get help to preserve your premises licence after insolvency. Support with interim authority notices, licence transfers and urgent deadlines in England and Wales.
In the current economic climate, more insolvencies are occurring than usual, particularly in the hospitality industry.
When a premises licence holder becomes insolvent, the premises licence can lapse immediately. A lapsed licence can affect licensed activities and have an impact on the sale of a business, property transaction or handover to a new operator.
Complete Licensing works with operators, landlords and insolvency practitioners to understand the current licensing position and act quickly and decisively to resolve the issue. From the minute you contact us, we will begin the process to help ensure your premises licence continues to be valid and legal.
If insolvency has occurred or is expected, please contact us as early as possible. There is a limited window in which to act to reinstate the existing licence.
Call 0207 222 2345 to discuss an urgent premises licence insolvency issue.
What happens to a premises licence during insolvency?
Under the Licensing Act 2003, a premises licence can lapse when the holder becomes insolvent within the meaning of the Act. The effect depends on who holds the licence and the insolvency event involved.
At the start of the process, it’s essential to establish exactly who the licence holder is, what has happened and when the insolvency took effect. Financial difficulties or a business closure do not, by themselves, establish that the premises licence has lapsed. We check the specific event affecting the licence holder and its consequences under the Licensing Act 2003.
An interim authority notice or eligible transfer application may allow for reinstatement of the premises licence. The correct route will depend on the individual circumstances and must be actioned within the relevant deadline.
While these arrangements are being considered, there is no guarantee you can continue licensed activities. Our experts will be able to advise you on the next actions when you get in touch. The 28-day application window is not a grace period for trading under a lapsed licence.
Why does premises licence preservation matter?
A premises licence authorises specified licensable activities at a property. Preserving it can support continued trading and help retain the commercial value of pubs, bars, restaurants, hotels and other licensed premises.
Losing the existing licence may affect:
- the ability to continue or resume licensed activities
- a proposed sale of the business
- arrangements with a purchaser or replacement tenant
- the permitted hours and activities available to a future operator
- the time and cost involved in reopening
Applying for a new premises licence is a separate process and will need to be considered if the existing licence has lapsed and the deadline for reinstating it has passed. If a new licence is granted, the hours and conditions may differ from those on the previous licence.
Understanding the licensing position from an early stage helps everyone involved understand what can be preserved and whether further applications are required. Doing this as soon as possible helps to minimise the potential impact on the business.
How can a premises licence be reinstated after insolvency?
When reinstating a premises licence after insolvency, there are two routes. Our experts assess the most appropriate action before preparing the required documents.
Interim authority notices following insolvency
An interim authority notice can allow you to temporarily reinstate the premises licence after a qualifying insolvency event. The notice must be given by an eligible person such as an insolvency practitioner or someone with a qualifying interest in the premises.
The notice should be given to the licensing authority within 28 consecutive days beginning the day after the licence lapsed. A valid notice reinstates the licence from receipt by the authority, subject to the statutory requirements and any applicable objection process.
An interim authority notice usually stays in effect for up to three months from receipt. A transfer application must be made within that period to prevent the licence from lapsing again.
Premises licence transfers after insolvency
Depending on the circumstances, you might be able to apply directly to transfer a lapsed premises licence within the statutory 28-day period, without giving an interim authority notice.
Applying for a transfer can reinstate the licence immediately as long as the relevant requirements are met. We assess the proposed licence holder, prepare the application and supporting documents, and liaise with the licensing authority about the licensing position.
It’s important to know that buying the business, taking over the lease or acquiring the property does not automatically transfer the premises licence, so relevant action must be taken.
How our licensing preservation service works
1. We establish the current licensing position
We review the existing premises licence, confirm the identity of the licence holder and review the insolvency documents. We will also establish the relevant dates, identify urgent deadlines and check whether an application or notice has already been submitted.
You’ll also need to let us know whether licensed activities are continuing and whether a sale or change of operator is planned.
2. We determine the best course of action
Our team will determine whether an interim authority notice, transfer application or another licensing process is appropriate. If more than one party is involved, we’ll work with the insolvency practitioner, landlord, proposed operator and legal advisers to clarify who will take responsibility for the licence.
3. We prepare and manage the licensing process
We prepare the relevant forms and supporting information, arrange submission to the licensing authority and coordinate the required notifications.
We liaise with the authority over any queries and keep you informed about the application and its effect on the premises’ licensing position.
4. We support the handover and ongoing operation
Preserving the licence after insolvency is only one part of preparing the premises for a new operator.
We can help you determine whether a change of Designated Premises Supervisor is required and whether the existing hours, conditions and licensed layout remain suitable.
If the incoming operator plans to change the business, we can advise on premises licence variations and provide ongoing licensing compliance support to protect the licence on a long-term basis.
Who can we help?
We can support the following with licence preservation:
- insolvency practitioners and administrators
- licensed business owners and operators
- commercial landlords and managing agents
- purchasers acquiring businesses or assets from an insolvent operator
- pub companies, hotel owners and hospitality groups
- solicitors advising on insolvency, property or business transactions
If you’re a property owner reviewing your wider licensing arrangements, our landlord licensing services also cover tenant changes, licence transfers and options for protecting your property’s future licensed use.
Why choose Complete Licensing?
An insolvency event can leave the parties involved facing urgent decisions. Licensing needs should always be considered alongside the sale, occupation and operation of the property.
At Complete Licensing, our experts work with you to establish the previous and current licensing position, identify the relevant application route and coordinate the work with the people handling the wider transaction.
We’ll let you know exactly what information we need, which deadlines apply and the actions you need to take before licensed activities can continue or restart.
Complete Licensing is an independent licensing consultancy. We provide licensing support and work alongside your insolvency practitioner and legal advisers. We do not replace their advice on insolvency proceedings, property rights or the business transaction.
Frequently asked questions about premises licences and insolvency
Can a premises licence be saved if the holder becomes insolvent?
It may be possible to reinstate a premises licence through a valid interim authority notice or transfer application. The action required will depend on the insolvency event, the applicant’s eligibility and whether any previous action has been taken.
Preservation of the premises licence cannot be guaranteed, which is why it’s important to check the position immediately.
Are we able to keep trading within the 28-day period?
Licensed activities must stop if the licence has already lapsed. You will need an effective reinstatement or another valid authorisation in place to continue with these activities.
What happens if the 28-day deadline has passed?
If the licence has lapsed, the deadline has passed and no valid action was taken, the usual insolvency reinstatement routes will no longer be available. A new premises licence application will usually be required.
Our team will review the timeline and any documents already submitted before advising on the next best steps.
Can a landlord give an interim authority notice?
A landlord may qualify through an eligible property interest, but eligibility must be checked. Giving an interim authority notice does not automatically establish eligibility for every subsequent licensing application.
Does a premises licence automatically transfer when someone buys the business?
No. These are separate matters, so licensing arrangements must be addressed as part of the transaction, with responsibility for the application clearly agreed.
Will we need to change the DPS as well?
This depends on your situation. A premises licence transfer does not automatically change the Designated Premises Supervisor. If the existing DPS leaves or the incoming operator appoints someone else, a separate DPS change application may be required.
Can your team help before insolvency occurs?
Yes. Contacting us as soon as possible enables us to review the licence holder, explain the potential licensing consequences and coordinate with your advisers before deadlines become urgent.
Any transfer or change must be considered alongside the wider insolvency and transaction advice.
Protect your premises licence during insolvency
If a licence holder has become insolvent, or an insolvency appointment is expected, contact Complete Licensing as soon as possible. You'll need to send us the premises details, the licence holder's name and the date of any relevant event. We will review the licensing position and explain the next best steps.