Q&As
Would it be unreasonable and/or valid for an assignor to act as a guarantor (under the terms of an AGA) for the assignee for any period of holding over under a protected business tenancy.
Since the passing of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) in relation to all new tenancies post 1 January 1996 the original tenant will be released from liabilities under covenants in the lease following an assignment. Nothing in the LT(C)A 1995, however, precludes the tenant from entering into an authorised guarantee agreement ie a guarantee of the performance of the obligations of the assignee under the lease.
An authorised guarantee agreement can be required by the landlord from an assignor when the lease contains a qualified covenant against assignment so that the assignment requires the consent of the landlord. Consent can be given subject to
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