A case reported this week should prompt all landlords to take advantage of our free 20 minute lease review and check that the obligations of a tenant’s guarantor can be legally enforced.
This judgement will affect any lease where there has been as assignment from the original tenant and a guarantor was involved.
In short it means the continuing liability of the guarantor under a lease can be challenged. Should the tenant then fail to pay the rent then this could prevent the landlord from recovering the arrears from the guarantor.
In future landlords will need to take a more careful look at the financial strength of the incoming tenant when dealing with an application for consent to assign a lease.
Steve Petty
Commercial Property Solicitor
01926 629 005
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.