I am a Guarantor for a commercial lease. The Landlord has forfeited the lease for non payment of rent and is now demanding payment from me. However, the rent being demanded is not only the unpaid rent up to the point of forfeiture, but also rent after that which would have been paid if the lease had not been forfeited (until a new tenant is found). I understand that I am liable for the former, but am I liable for rent after the forfeiture when the tenant's obligations ended? I'd appreciate any comments, thanks.
Commercial Lease Guarantee
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Was a deed of surrender entered into or were the locks changed? How was the property surrendered? In any event if the lease was forfeited as you say then obviously your liability does not extend beyond the date of forfeiture - or this is my understanding.[I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]
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Originally posted by MrJohnnyB View PostWas a deed of surrender entered into or were the locks changed? How was the property surrendered? In any event if the lease was forfeited as you say then obviously your liability does not extend beyond the date of forfeiture - or this is my understanding.
By opting to forfeit, L loses all post-forfeiture rent.JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
4. *- Contact info: click on my name (blue-highlight link).
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Originally posted by Always Problems View PostSo in fact if a Landlord has a Guarantor for a commercial lease and the tenant vacates leaving unpaid rent, the landlord need do nothing as he has a legal right to expect the Guarantor to be entirely responsible for the rest of the period of the lease irrespective of the term remaining.
LL should have issued a statutory demand against G - forfeiture of lease by way of peaceable re-entery should really only be an option whereby the T has a saleable asset - in any event T can seek relief from forfeiture anyway.[I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]
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Originally posted by Always Problems View PostSo in fact if a Landlord has a Guarantor for a commercial lease and the tenant vacates leaving unpaid rent, the landlord need do nothing as he has a legal right to expect the Guarantor to be entirely responsible for the rest of the period of the lease irrespective of the term remaining.
See Reichman and Dunn v. Beveridge and Gauntlett (http://www.bailii.org/ew/cases/EWCA/Civ/2006/1659.html)
and post #5 on http://www.landlordzone.co.uk/forums...man#post212019JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
4. *- Contact info: click on my name (blue-highlight link).
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