Top tips for landlords
Landlords should remember the following:
When a tenant applies for licence to assign a new lease, under what circumstances does the lease allow the landlord to
demand an authorised guarantee agreement (AGA)? Even if the landlord can request an AGA, it may not be worthwhile, for example, if the outgoing tenant is in financial difficulty.
Think before pursuing a former tenant or guarantor. If the former tenant or guarantor pays in full they will be entitled to
an overriding lease. It may be better to persevere pursuing the current tenant, or to forfeit the lease if there is a chance
of re-letting the premises at the same or higher rent.
Remember that varying a lease can release guarantors, including former tenants who have entered into an AGA.
Guarantors should, where possible, be joined in as a consenting party to a variation.
Giving time to a tenant in a binding way which will allow the tenant to pay rent late or not at all could operate to release