The liability of a person who guarantees the performance of the tenant's obligations under the lease only arises if the original debtor defaults, but that liability may be extended by the terms of the guarantee. The guarantor will have a continuing liability even though the lease has been disclaimed and the tenant's obligations terminated1. The benefit of a tenant's surety's covenant passes automatically to a buyer of the reversion2, as does the benefit of a surety's covenant to accept a lease to replace one disclaimed on the tenant's insolvency3.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234