The Practical Lawyer

It is well-known that a liquidator can disclaim any ‘onerous property’, including a lease. But, what is the effect of that disclaimer on any guarantor and, in particular, on the enforceability of an Authorised Guaranteed Agreement (AGA)?

Many practitioners do not think of TUPE in the context of commercial leases. But, it is important to appreciate that the grant, assignment or termination of a lease will often result in a change of service provider, in which case TUPE can apply.

Under a pre-pack a company goes into administration and then its assets are sold immediately. The documentation will usually say that the leases will be transferred to NewCo following the grant of L’s consent, but it will be up to NewCo to get that consent.

Many Ts of retail premises are asking to pay their rent monthly (rather than quarterly).

Virtual assignments are common in large corporate transactions. For instance, if a seller has dozens of leasehold properties it may not be practical to apply for consent to assign each property before completion of the deal.

The Commercial Rent Arrears Recovery regime was intended to replace the ancient remedy of distress.

This table summarises L’s remedies when dealing with a corporate (not individual) T.