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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I am buying a pub on a 3 year rolling lease 76000 and my house

Resolved Question:

I am buying a pub on a 3 year rolling lease 76000 and my house is collateral for the bank. the brewery is asking me to sign a personal guarantee for the rent 3years rent = 114000
is this just a question of signing the paper and in the event that I cannot pay the rent they will come after me for what ever is left outstanding on the lease or will they want security up front ie security on a house before I even start trading
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

Personal guarantee means that you guarantee the liabilities and obligations of the pub which is a separate legal entity from you, so in the event that your house is not enough security or the landlord does not recover the rent from the proceeds of the house, then they can come after your personal assets e.g. Your bank accounts, personal belongings etc.

Hope this helps
Customer: replied 3 years ago.

Thank you for the info, will the brewery want me to have security for the 114000 of rent before I sign the document.

Expert:  UKSolicitorJA replied 3 years ago.
The security for the 114000 is your house and the personal guarantee.

Hope this clarifies
Customer: replied 3 years ago.

sorry not explaining this very well the bank has already got the house as security for the loan for the lease... what I need to know is will the brewery want me to have additional security in place for the 114000 of rent in place before I sign the personal agreement thanx

Expert:  UKSolicitorJA replied 3 years ago.
If they have not asked you for it, then I presume not, they seem to be only asking you to sign the guarantee.

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