Hi brenda:
First of all, sympathy to your friends. However, I don't quite understand what you're suggesting.
Correct me if I'm wrong, but do your friends expect someone else, not aware of the problems there, to come along and take over the lease? In other words, they would try not to reveal anything, just let them take over, and leg it?
Have your friends discussed the matter with whoever the property is leased from at the moment? If so, what was the outcome of that? Or have they not approached them?
And do you know who actually owns the problem house next door? Council house?
I don't know if you're telling us the whole story here.