Property Litigation Legal Director Mark Reading and Landmark Chambers Barrister Myriam Stacey QC set out practical pointers for landlords relying on a guarantee, for EG.
They note: "A commercial landlord’s ability (or inability) to rely on a well-capitalised guarantor will be an issue of crucial importance and a source of real value to a purchaser of investment properties when faced with a tenant of questionable financial standing. Yet, in practice, enforceability is not guaranteed. The issues identified are too often overlooked, and can have potentially disastrous consequences for unsuspecting purchasers (and possibly also their solicitors if they do not identify the issue), particularly in times of economic uncertainty."
Read the full article on the EG website here (subscription required).