Leases can no longer be validly assigned to a tenant’s guarantor. The High Court has made this clear in EMI Group Limited v O & H Q1 Limited. The practical implication of this is that an assignment to a guarantor is void and therefore where a lease has been assigned from a tenant to its guarantor, the lease remains vested in the tenant and the guarantor remains the guarantor of the tenant, despite the assignment. The court\u2019s decision applies retrospectively to any tenancy created after 1 January 1996.<\/p>\n
Going forward \u2013 Considerations for Tenants<\/strong><\/p>\n Going forward \u2013 Considerations for Landlords.<\/strong><\/p>\n The decision will have an effect for both landlords and tenants and will pose practical challenges particularly to corporate groups trying to organise their affairs via intra group transfers.<\/p>\n","protected":false},"excerpt":{"rendered":" Leases can no longer be validly assigned to a tenant’s guarantor. The High Court has made this clear in EMI Group Limited v O & H Q1 Limited. The practical implication of this is that an assignment to a guarantor is void and therefore where a lease has been assigned […]<\/p>\n","protected":false},"author":1,"featured_media":901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1491],"tags":[1683,1722,929,1765,1769,1775,1837],"class_list":["post-4003","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-property-2","tag-emi-group-limited","tag-guarantors","tag-landlord","tag-landlord-tenant","tag-landlord-disputes","tag-lease-assignments","tag-o-h-q1-limited"],"yoast_head":"\n\n
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