Guarantors
The guarantor (or surety) is responsible for compensating the landlord if the tenant defaults under the lease. Guarantors should try to negotiate a provision that they will be automatically be released from liability if the particular tenant whose obligations they are guaranteeing assigns the lease.
A guarantor’s obligations can be heavy, and should not be taken on without full consideration. It is often appropriate for guarantors to receive advice independently of the tenant whose obligations they plan to guarantee.
An alternative form of security for the landlord is to insist on a rent deposit; the terms of the deposit should be explicit and recorded in writing at the same time as the lease wording is agreed.
Completion expenses
On completion of a new lease, the landlord will expect to collect (and so the tenant should expect to pay):
the rent for the period from the start date to the next rent day.
the insurance premium from the start date to the next insurance renewal date.
the service or maintenance charge (if applicable) from the start date to the next service charge payment date.
any agreed rent deposit (together with an amount equivalent to the VAT on it, though no invoice will be issued at this stage).
any agreed contribution towards the landlord’s legal costs.
Continuing relationship
The relationship between the landlord and tenant will continue after the lease has been signed. It is therefore sensible to pursue negotiations constructively and fairly, so as not generate bad feeling for the future
No comments:
Post a Comment