Authorised guarantee agreement

by Practical Law Property

An Authorised Guarantee Agreement (AGA) intended for use in England and Wales when an outgoing tenant assigns a "new" lease. This deed is designed to be entered into as a condition of a landlord's consent to assign, in compliance with the Landlord and Tenant (Covenants) Act 1995 (LTCA 1995). This standard document sets out the outgoing tenant's guarantee of the incoming assignee's obligations to pay rent and perform the tenant covenants under the lease. It includes primary indemnity provisions and specifies circumstances that will not release the tenant from liability. This standard document addresses the impact of future lease variations and contains a clause requiring the tenant to take a new lease if the assignee's lease is disclaimed, for example, upon insolvency. It also considers the interaction with the security of tenure provisions of the Landlord and Tenant Act 1954 (LTA 1954) and includes optional provisions for a tenant's guarantor to guarantee the tenant's obligations under the AGA (a GAGA).