343. New tenancies: authorised guarantee agreements.

Where a lease contains a restriction on assignment, the landlord can, as a condition of his granting consent to the assignment, require the tenant to enter into an agreement which guarantees the performance of the lease covenants by the immediate assignee (an 'authorised guarantee agreement')1. The terms of the proposed authorised guarantee agreement may be set out in the lease. The agreement can only guarantee the liability of the assignee and must cease when that assignee assigns the lease2. It may impose a primary liability but is void to the extent that it imposes obligations beyond those permitted3