Commercial Property Solicitor: Free Consultation
What Are the Risks of Being a Guarantor on a Commercial Lease?
There are a number of risks involved in being the guarantor on a commercial property lease, primarily the legal responsibility to continue payments for the full duration of the contractual agreement, whatever the circumstances.
We are often asked for legal advice before signing as a guarantor to a commercial lease. This is not surprising as company directors, business associates or family members may agree to guarantee a commercial lease, and where the business is forced to close before the agreement has run its course, the guarantor may then have to continue making rent payments, as well as fulfil any other obligations for the remainder of the lease period, sometimes for a number of years into the future.
This can have a dramatic effect on the finances of the guarantor, especially when the original tenant has ceased trading and can contribute nothing towards the lease payments.
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Even if the guarantee if strictly enforceable, there will then be the question of whether a tenant can sub-let the lease, or otherwise assign the lease to a new tenant. Either way, the landlord's consent will be required, and in most cases the end result will be the transfer of the guarantee to the sub-tenant or new leaseholder. This is however a complicated area of law, and again, much depends on what was stated in the original lease document.
If there is no escape from the terms of the guarantee, a lawyer can advise on the best action to take in terms of reducing or offsetting the guarantor's financial liability. This may involve negotiating with the landlord to reach agreement over terminating the lease, or advising on the sub-letting or assignation of the lease to a third party occupier.
Why Choose Bartletts Solicitors?
Solid Traditional Values Delivered
in a Modern Convenient Manner
Our firm has years of experience in commercial property matters across England and Wales.
Benefit from competitive fixed fees, a free no obligation quotation and no hidden costs.
Our solicitors are very experienced having worked at the firm for an average of 18 years.
Bartletts Solicitors was managed by John Bartlett for over 40 years, the last 25 of which he was assisted by Trevor Morris. Trevor is now the managing director, representing continuity for the firm’s traditional values and customer satisfaction ethos.
Send Our Commercial Property Law Team an Enquiry:
(or give us a call on 0151 227 3391)
Commercial Property Solicitors:
Commercial Lease Information:
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Negotiating Commercial Lease Terms
How to Negotiate a Rent Free Period
The Risks of Being a Guarantor on a Commercial Lease
How Can a Tenant Exit a Commercial Property Lease?
Stamp Duty on Commercial Property Leases
Is it Possible to End a Commercial Lease Early?
Commercial Property Conveyancing Solicitors
Evicting Squatters From Commercial Property
Commercial Property Solicitors: How We Can Help
We also have dedicated pages covering the following lease types:
Warehouses, Industrial Units, Dark Kitchens, Offices, Hair Salons, Clothes Shops, Restaurants, Surgeries, E-Cig Shops.
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