Guarantees and rent deposits

Guarantees and rent deposits guidance:

What is an authorised guarantee agreement (AGA)? Under an AGA an outgoing tenant guarantees some or all of the obligations of an incoming tenant under a lease. It was...

Practice Note

Background—Landlord and Tenant (Covenants) Act 1995 Landlord and Tenant (Covenants) Act 1995, s 5(2)(a) provides that if: 'a tenant assigns the whole of the premises...

Practice Note

The advantages of taking collateral security from a third party to secure the principal debt are that: • the mortgagee may not need to have recourse to the primary...

Practice Note

The Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) controls the liability of former tenants and their guarantors for rent and service charge after assignment of a...

Practice Note

In Powerhouse, parent company guarantees were given in respect of a number of high street stores and supermarkets in the UK. The tenant company subsequently decided to...

Practice Note

Rectification is an equitable remedy by which the court can correct an error of expression where a written document does not match the parties' intention. It is available...

Practice Note

A rent deposit is a sum of money that is deposited by a tenant when it takes a lease of premises. The deposit acts as security for the landlord against the non-payment of...

Practice Note

What is a rent guarantee? A rent guarantee is an incentive offered by the seller of an investment property which has empty premises (eg an empty floor in an office block...

Practice Note

Undue influence arises where the transaction is to the manifest disadvantage of the person subjected to the dominating influence. It is the abuse of a relationship of...

Practice Note

Losing guarantee covenants At any point in the economic cycle landlords will want to protect themselves against tenant default, particularly in the case of potentially...

Practice Note

When drafting and agreeing a rent deposit deed, consider the following issues. They will not be applicable to every situation and often, due to the financial status of...

Practice Note

What is a rent deposit? A rent deposit is a sum of money that is deposited by a tenant when it takes a lease of premises as security against the non-payment of rent and...

Practice Note