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Lease Personal Guarantee Form Template for England and Wales

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Key Requirements PROMPT example:

Lease Personal Guarantee Form

"I need a Lease Personal Guarantee Form for my retail property in Manchester, where the guarantor is the parent company of the tenant business, and the guarantee needs to cover both rent and service charge obligations for a 5-year lease starting March 2025."

Document background
The Lease Personal Guarantee Form is a crucial document in property leasing transactions under English and Welsh law, typically used when a landlord requires additional security beyond the tenant's covenant. This document becomes particularly relevant for new businesses, tenants with limited trading history, or in high-value commercial leases. The guarantee creates a legally binding commitment from a third party (often a company director or parent company) to step in and fulfill all lease obligations if the tenant defaults. The document includes detailed provisions about the scope of guarantee, enforcement mechanisms, and the guarantor's obligations.
Suggested Sections

1. Parties: Details of the Guarantor, Landlord, and Tenant

2. Background: Context of the guarantee, referring to the main lease agreement

3. Definitions: Key terms used throughout the guarantee agreement

4. Guarantee and Indemnity: Core obligations of the guarantor including scope of guarantee and indemnification provisions

5. Duration: Period of guarantee validity and conditions for termination

6. Guarantor's Obligations: Specific responsibilities and commitments of the guarantor including payment obligations and performance guarantees

7. Execution: Signature blocks and witness requirements for formal execution

Optional Sections

1. Joint and Several Liability: Provisions detailing shared responsibility when multiple guarantors are involved

2. Limitation of Liability: Specific caps or restrictions on guarantor's liability and exclusions

3. Step-in Rights: Provisions allowing guarantor to take over lease in case of tenant default

Suggested Schedules

1. Schedule 1 - Main Lease: Copy or summary of the main lease agreement being guaranteed

2. Schedule 2 - Guaranteed Obligations: Detailed list of specific obligations being guaranteed under the agreement

3. Appendix A - Asset Statement: Statement of guarantor's assets and financial position for assessment of guarantee capacity

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses

























Industries

Landlord and Tenant Act 1985: Primary legislation governing landlord and tenant relationships, setting out basic rights and obligations

Landlord and Tenant Act 1987: Additional primary legislation covering tenants' rights and landlord obligations

Law of Property Act 1925: Fundamental property law legislation that governs real property transactions and interests

Statute of Frauds 1677: Historic legislation requiring guarantees to be made in writing and signed to be legally enforceable

Consumer Credit Act 1974: Legislation governing credit arrangements, relevant when the guarantee involves a consumer

Unfair Contract Terms Act 1977: Controls the use of unfair terms in contracts and establishes which terms may be void or unenforceable

Consumer Rights Act 2015: Modern consumer protection legislation, particularly relevant when dealing with individual guarantors

Misrepresentation Act 1967: Governs remedies for misrepresentation in contract formation, including guarantees

Contracts (Rights of Third Parties) Act 1999: Regulates how third parties may enforce terms of a contract

Contractual Capacity Rules: Legal principles determining who has the capacity to enter into binding contracts including guarantees

Consideration Doctrine: Common law principle requiring exchange of value for contract validity

Undue Influence Doctrine: Legal principle protecting guarantors from improper pressure or influence in entering guarantees

Contract Formation Rules: Legal principles governing how valid contracts are formed and become enforceable

FCA Regulations: Financial Conduct Authority regulations that may apply to certain guarantee arrangements

Data Protection Act 2018 and GDPR: Legislation governing how personal data must be handled and protected in contractual relationships

Guarantee Enforcement Case Law: Relevant court decisions establishing precedents for how guarantees can be enforced

Guarantee Terms Interpretation Case Law: Court decisions providing guidance on how guarantee terms should be interpreted

Guarantor Discharge Case Law: Legal precedents establishing when and how guarantors may be discharged from their obligations

Guarantor Liability Case Law: Court decisions defining the scope and extent of guarantor liability

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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