Q&As

A long commercial lease at a peppercorn rent (being a new lease under the Landlord and Tenant (Covenants) Act 1995) provides that the only pre-requisite for the landlord to grant a licence to assign to the tenant is for the assignee to provide a deed of covenant. Would the landlord be acting unreasonably if it requested that the assignor enter into an authorised guarantee agreement where the assignee is an offshore company?

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Produced in partnership with Carl Fain of Tanfield Chambers
Published on LexisPSL on 24/06/2020

The following Property Q&A produced in partnership with Carl Fain of Tanfield Chambers provides comprehensive and up to date legal information covering:

  • A long commercial lease at a peppercorn rent (being a new lease under the Landlord and Tenant (Covenants) Act 1995) provides that the only pre-requisite for the landlord to grant a licence to assign to the tenant is for the assignee to provide a deed of covenant. Would the landlord be acting unreasonably if it requested that the assignor enter into an authorised guarantee agreement where the assignee is an offshore company?

A long commercial lease at a peppercorn rent (being a new lease under the Landlord and Tenant (Covenants) Act 1995) provides that the only pre-requisite for the landlord to grant a licence to assign to the tenant is for the assignee to provide a deed of covenant. Would the landlord be acting unreasonably if it requested that the assignor enter into an authorised guarantee agreement where the assignee is an offshore company?

The answer to this question depends on the wording of the covenant prohibiting assignment without consent. If the covenant is worded so that the only pre-requisite to grant a licence to assign is a deed of covenant, then the landlord

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