Construction & Real Estate

By: Claire Leyshon
Clarkslegal LLP (Reading, England)

The vexed question as to the extent of a guarantor’s continued liability for a tenant proposing to assign its lease finally came before the Court of Appeal in K/S Victoria Street v House of Fraser (Stores Management) Ltd & others.

The case provides (for the moment) the definitive guidance on the extent to which a tenant’s guarantor can be required to guarantee the tenant’s proposed assignee’s liability under the lease, having regard to the principles of the Landlord and Tenant (Covenants) Act 1995 (“the Act”). Click here to read entire article.