“Any contractual arrangement contained in a tenancy (or a prior agreement ), which imposed an obligation on an existing or prospective guarantor of the tenant’s liabilities to guarantee the liabilities of a future assignee, would be void by reason of section 25(1) of the Landlord and Tenant (Covenants) Act 1995 because it frustrated the operation of section 24(2) of that Act, by which the original tenant’s guarantor was released from his obligation on the assignment of the tenancy. Similarly, a contractual arrangement contained in a later document, for instance, a renewal obligation imposed on a guarantor of an assignee’s liabilities in an assignment or a licence to assign, would be invalid.”
WLR Daily, 27th July 2011
Source: www.iclr.co.uk
