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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7626
Experience:  UK solicitor holding an England and Wales practising Certificate.
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As an owner/director of a small business that rents the business

Resolved Question:

As an owner/director of a small business that rents the business premises from a private landlord on a 3 year lease agreement the lease is due for renewal, the landlord wants an increase in the rent and I in turn no longer want to be the guarantor of the lease on the basis that whilst the business was a new start on the original lease it has been the tenant for 12 years and currently is profitable. I am happy to sign a new lease with the 2 changes described. He naturally wants the increase in rent and still wants me to be the guarantor of the lease. Am I legally bound to continue to be the guarantor on a renewed lease or can I stand my ground and attempt to negotiate an agreement without being the guarantor?
Submitted: 3 years ago.
Category: Property Law
Expert:  Thomas replied 3 years ago.
Hi
Thank you for your question and patience, I’m Tom and I’ll try to help you.
If you are proposing to execute a new lease then you are not under any legal obligation to remain as guarantor whatsoever
If you sign the new lease without you as guarantor then you will be released from personal liability under the new lease.
It is simply a matter for negotiation. If you are able to negotiate the terms of the proposed lease (without you as guarantor) that you are happy with then you can proceed. However, If the landlord chooses to dig their heels in during negotiations and requires you to remain guarantor then it’s simply a case of take-it-or-leave-it.
My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.
Kind regards,
Tom
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