Q&As

Is the fact that an incoming assignee would not be able to offer a sufficient authorised guarantee agreement in the future due to its limited covenant strength a valid reason for refusing consent?

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Published on LexisPSL on 03/02/2017

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Is the fact that an incoming assignee would not be able to offer a sufficient authorised guarantee agreement in the future due to its limited covenant strength a valid reason for refusing consent?
  • Where the requirement of an approved guarantor is a precondition

Under Landlord and Tenant Act 1988 (LTA 1988) where a written application is served on a landlord, he owes a positive duty, within a reasonable time to give consent, except in a case where it is reasonable not to give consent.

We are not aware of any authority on whether the fact that an incoming assignee would not be able to offer a meaningful authorised guarantee agreement in the future would be a considered reasonable reason to withhold consent.

However, the purpose of a covenant against assignment without consent is to protect the landlord from having his premises used or occupied in an undesirable way or by an undesirable assignee and a land

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