Guarantees and AGAs

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Coronavirus (COVID-19) update—restrictions on enforcement extended

The following Banking & Finance news provides comprehensive and up to date legal information on Coronavirus (COVID-19) update—restrictions on enforcement extended

HMCTS publishes guidance and FAQs for the Damages Claims pilot scheme (CPR PD 51ZB)

The following Dispute Resolution news provides comprehensive and up to date legal information on HMCTS publishes guidance and FAQs for the Damages Claims pilot scheme (CPR PD 51ZB)

Property Disputes weekly highlights—17 June 2021

The following Property Disputes news provides comprehensive and up to date legal information on Property Disputes weekly highlights—17 June 2021

Operators granted interim MSV Code rights at critical national infrastructure building in London (EE Ltd v London Underground)

The following Property Disputes news provides comprehensive and up to date legal information on Operators granted interim MSV Code rights at critical national infrastructure building in London (EE Ltd v London Underground)

Featured Property Disputes content

Specific performance of property agreements

If a party to a property agreement fails to comply with its obligations, the other party may wish to apply for an order for specific performance....

Notice to complete

While this Practice Note primarily covers commercial property matters, it also touches on residential considerations.Time is generally not of the...

Section 26 notice—Tenant’s request for a new business tenancy under LTA 1954

Tenant's request for a new business tenancyThese drafting notes are for use when completing a tenant’s request for a new business tenancy under the...

Can a neighbour attach something to the external wall of a neighbouring property, which is said to be a party wall?

The Party Wall etc Act 1996 (PWA 1996) should be referred to for its full provisions but defines a party wall as a wall forming part of a building and...

Practice notes

Breach of Missives—remedies in Scotland

MissivesThe most common form of contract in Scottish property transactions are missives of sale, see for example, the Property Standardisation (PSG)...

Produced in partnership with Alistair Drummond, Tony Holloran, Vladimir Kucera and Scott Traynor of DLA Piper Scotland LLP 19th May

Scottish Law

Practice notes

Discharging a charging order over land

This Practice Note sets out the procedure for discharging a charging order over property, including the removal of any notices or restrictions on...

19th May

Practice notes

Remedies for breach of restrictive covenants

Damages or injunction—the testThe primary remedy for breach of a restrictive covenant is a permanent injunction to restrain the breach. However, the...

19th May

Q&As

Can someone trim their neighbour’s hedge without permission which is encroaching their garden?

The simple answer to this question is yes, there is a right to lop or cut back hedges or trees that belong to a neighbour and overhang your land. The...

Produced in partnership with Brie Stevens-Hoare QC of Hardwicke Chambers 19th May

Q&As

Can a mortgagee rely on Ground 2 of Schedule 2 to the Housing Act 1988 to evict a residential tenant occupying under an assured shorthold tenancy if, at the time the tenant was given notice prior to the commencement of the tenancy that the property was mortgaged, it was mortgaged to a different lender (ie it has since been remortgaged)?

The answer is, no.Ground 2 of Schedule 2 Part I to the Housing Act 1988 (HA 1988) reads:‘The dwelling-house is subject to a mortgage granted before...

Produced in partnership with Desmond Kilcoyne 19th May

Precedents

Example letter 1–Party Structure Notice

To [insert Adjoining Owner]Of [insert Adjoining Owner’s main address][Insert date]Dear [title]The Party Wall etc Act 1996Notice of proposed works –...

19th May

Practice notes

Surrender by operation of law

A surrender by operation of law (or ‘implied surrender’) occurs when the unequivocal conduct of both parties is inconsistent with the continuation of...

19th May

Practice notes

Rectification—unilateral mistake

This Practice Note considers the remedy of rectification for unilateral mistake. For rectification for common mistake, see Practice Note:...

19th May

Q&As

When does liability for payment of arrears arise following the service of a section 17 notice on a former tenant or guarantor? Can proceedings be issued immediately following service of the notice (subject to compliance with any pre-action protocols)?

This Q&A addresses the question of when a landlord, having served notice on a former tenant or a guarantor for payment of arrears pursuant to the...

Produced in partnership with Alex Campbell of Arden Chambers 19th May

Practice notes

Property boundaries

This Practice Note explains how to ascertain the location of property boundaries: the general boundaries rule that applies to HM Land Registry title...

19th May

Practice notes

Interim rent

This Practice Note sets out what interim rent is, when an interim rent application can be made under the Landlord and Tenant Act 1954 (LTA 1954) and...

19th May

Q&As

Can you serve a notice under the Torts (Interference with Goods) Act 1977 on a vehicle parked on private property? What is the procedure for removal?

Pursuant to section 12 of the Torts (Interference with Goods) Act 1977 (T(IG)A 1977), involuntary bailees of goods are afforded the ability to sell...

Produced in partnership with Georgia Whiting of 4 King’s Bench Walk 19th May

Practice notes

Estoppel and property law

This Practice Note discusses issue that arise in proprietary estoppel in a property context. For a general discussion of proprietary estoppel, see...

19th May

Q&As

How do you calculate the court fee for a claim under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996) when the value of the claim is unknown, as is sometimes the case when applying for a declaration under TOLATA 1996?

Assuming that the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996) claim is to proceed as a CPR 7 claim (a CPR 8 claim—for which...

Produced in partnership with Desmond Kilcoyne of 42 Bedford Row 19th May

Q&As

A lease provides that the rules regarding service of notices under section 196 of the Law of Property Act 1925 will apply to any notices served under the lease. Where a break notice is served by a landlord by first class post only at the tenant’s place of business, rather than the premises or registered office, will the notice be invalid due to a failure to comply with section 196, or is compliance with these provisions not mandatory?

Any notice required or authorised to be served or given under the Law of Property Act 1925 (LPA 1925) must be in writing. In relation to the location...

19th May

Practice notes

Trespass—remedies

Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been...

19th May

In-house

Most recent Guarantees and AGAs content

Q&As

Can a landlord require a tenant who gave an authorised guarantee agreement (AGA) in relation to a protected tenancy to enter into a new AGA when the lease is renewed pursuant to the Landlord and Tenant Act 1954 or for the AGA to continue?

Can a landlord require a tenant who gave an authorised guarantee agreement (AGA) in relation to a protected tenancy to enter into a new AGA when the...

11th Jun

Practice notes

Quick guide to common time limits for property disputes lawyers

Quick guide to common time limits for property disputes lawyersThis Practice Note details the deadlines for carrying out some of the more common tasks...

11th Jun

Q&As

Where a guarantor under a lease is not required to take a lease but rather pay a landlord a sum of money under the guarantee provisions in a lease, in order not to be a penalty and unenforceable, should that amount not exceed a reasonable estimate of the landlord's loss and would that be calculated by reference to the outgoings payable under the lease for a reasonable estimate of the time that it will take the Landlord to re-let the property?

Where a guarantor under a lease is not required to take a lease but rather pay a landlord a sum of money under the guarantee provisions in a lease, in...

Produced in partnership with Kate Andrews of Hamlins 6th Jun

Q&As

How does a rental guarantee agreement work in a residential development context and is it appropriate for a developer to use the promise of a guaranteed yield as an incentive in their market campaign?

How does a rental guarantee agreement work in a residential development context and is it appropriate for a developer to use the promise of a...

6th Jun

Q&As

A guarantor guaranteed the obligations of the original tenant in an ‘old’ lease. The lease was later assigned and no guarantor was provided on assignment. If the parties wish to surrender the lease, does the guarantor need to be party to the surrender?

A guarantor guaranteed the obligations of the original tenant in an ‘old’ lease. The lease was later assigned and no guarantor was provided on...

6th Jun

Q&As

Terms for a new lease have been agreed. The landlord will grant the tenant a rent concession and this concession will be contained in a side letter, personal to the tenant. The lease will include an ‘entire agreement’ clause. Should the entire agreement clause be amended so that the side letter is deemed to be part of the agreement?

Terms for a new lease have been agreed. The landlord will grant the tenant a rent concession and this concession will be contained in a side letter,...

Produced in partnership with Elizabeth England 6th Jun

Q&As

Are there any alternatives to providing an authorised guarantee agreement, in particular where there will be an intra-group assignment?

Are there any alternatives to providing an authorised guarantee agreement, in particular where there will be an intra-group assignment?The starting...

6th Jun

Q&As

A Landlord and Tenant Act 1954 protected lease requires an outgoing tenant to enter into an authorised guarantee agreement (AGA) to cover the period during which the assignee is bound by the tenant covenants. In such a case, does the AGA cover the continuation tenancy if the assignee holds over?

A Landlord and Tenant Act 1954 protected lease requires an outgoing tenant to enter into an authorised guarantee agreement (AGA) to cover the period...

Produced in partnership with Helen Galley of XXIV Old Buildings 6th Jun

Q&As

Do section 17 of the Landlord and Tenant (Covenants) Act 1995 obligations apply to guarantors of existing tenants or is it only guarantors of former tenants that have since assigned the lease? A landlord has forfeited a lease and wishes to pursue the guarantor for the shortfall.

Do section 17 of the Landlord and Tenant (Covenants) Act 1995 obligations apply to guarantors of existing tenants or is it only guarantors of former...

Produced in partnership with Alexander Campbell of Field Court Chambers 6th Jun

Q&As

Where a secure business tenancy with three years to run is assigned and the assignor gives an authorised guarantee agreement (AGA) for the assignee, if the assignee applies for a new lease under the Landlord and Tenant Act 1954, will the AGA fall away? Can the landlord require the assignee at that stage to provide new security? How would the court determine the criteria for that security?

Where a secure business tenancy with three years to run is assigned and the assignor gives an authorised guarantee agreement (AGA) for the assignee,...

Produced in partnership with Christopher Snell of New Square Chambers 6th Jun

Q&As

A commercial lease contains a market standard rent review clause. The parties agree the reviewed rent but the guarantor to the lease does not sign the rent review memorandum. It is signed by the landlord and tenant. What are the implications of the guarantor not signing the memorandum?

A commercial lease contains a market standard rent review clause. The parties agree the reviewed rent but the guarantor to the lease does not sign the...

6th Jun

Q&As

On an assignment of a commercial lease can the guarantor of the original tenant under the lease be liable under an authorised guarantee agreement by that tenant but to which the guarantor was not a party?

On an assignment of a commercial lease can the guarantor of the original tenant under the lease be liable under an authorised guarantee agreement by...

6th Jun

Q&As

What is the procedure for demanding payment of rent arrears owed by a current tenant from its guarantor? Does the Coronavirus Act 2020 affect making such a demand?

What is the procedure for demanding payment of rent arrears owed by a current tenant from its guarantor? Does the Coronavirus Act 2020 affect making...

6th Jun

Q&As

On an assignment of a lease (where an AGA is a condition of the licence to assign) can a landlord insist on the existing guarantor under the current lease standing as guarantor under the AGA where there is no provision in the lease for the same?

On an assignment of a lease (where an AGA is a condition of the licence to assign) can a landlord insist on the existing guarantor under the current...

6th Jun

Q&As

A landlord wishes to forfeit a lease for non-payment of rent before the expiry of the fixed term. There are also a number of items of disrepair. The tenant has vacated the premises some time ago and cannot be located. There is a guarantor under an AGA. If the landlord forfeits the lease will its right to claim the cost of repair from the guarantor be lost? If so, what steps should the landlord take to preserve this right while also ensuring the right to forfeit is not waived?

A landlord wishes to forfeit a lease for non-payment of rent before the expiry of the fixed term. There are also a number of items of disrepair. The...

6th Jun

Q&As