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.

read titleRead full title
Produced in partnership with Helen Galley of XXIV Old Buildings
Published on: 20 September 2018
imgtext

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

Helen Galley
Helen Galley

Helen has built up a reputation as a well-respected commercial Chancery practitioner with an emphasis on property and trusts related issues. She has built up extensive and wide ranging expertise in both non contentious and contentious property matters ranging from small scale cases to multi-million pound developments. Helen has also acted in a wide range of commercial and business disputes in areas as diverse as travel, hire purchase, the media, entertainment, IPR, IT and e-commerce. Contentious and non-contentious trusts matters, both on and offshore, are a regular feature of her caseload. Helen is a member of STEP, ACTAPS, the Property Bar Association, the Chancery Bar Association and IAL as well as an accredited mediator. Helen is recommended as “a first-rate advocate” in Legal 500 2015 for private client (trusts and probate), partnership and professional negligence. She is said to be “consistently able to provide excellent advice in a charming and friendly style” and is “responsive, hugely supportive and extremely user-friendly”.

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Assignor definition
What does Assignor mean?

The entity disposing of an asset by an assignment.

Popular documents