Q&As

Where a private individual who has guaranteed a commercial lease dies, would the landlord have a claim against the guarantor’s estate for rent arrears? Would this be in addition to any claim they would have against the previous tenant under an authorised guarantee agreement and could the landlord choose which party to pursue in preference to the other?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 04/01/2017

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • Where a private individual who has guaranteed a commercial lease dies, would the landlord have a claim against the guarantor’s estate for rent arrears? Would this be in addition to any claim they would have against the previous tenant under an authorised guarantee agreement and could the landlord choose which party to pursue in preference to the other?

It is commonplace for the landlord of a commercial tenant to require a guarantee in respect of the obligations under the lease. This is particularly the case where the tenant is a company; it is often the case that the guarantor is a director, shareholder or other controlling mind behind the company leasing the premises.

A landlord is for obvious reasons only able to make a claim under the guarantee if there has been an act of default by the tenant. A covenant of guarantee is usually constituted as a covenant both of guarantee and of indemnity. The former is an obligation to ensure that the tenant performs its obligations, and thus a breach by the tenant is a breach of the covenant of guarantee. A covenant of indemnity gives rise

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