The Commercial Lease Guarantor Form is essential in commercial property transactions where additional security is required beyond the tenant's covenant. This document is commonly used in England and Wales when letting high-value commercial properties, when dealing with new or untested business tenants, or when the tenant's financial standing alone is insufficient. It creates a legally enforceable obligation on the guarantor to step in and meet the tenant's obligations, including rent payments and other lease covenants, if the tenant fails to do so. The form must comply with specific statutory requirements and case law principles under English and Welsh jurisdiction.
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1. Parties: Details of Landlord, Tenant, and Guarantor including full legal names and addresses
2. Background: Context of the guarantee and reference to the main lease agreement
3. Definitions: Key terms used throughout the guarantee including 'Lease', 'Tenant Covenants', 'Guaranteed Obligations'
4. Guarantee and Indemnity: Core obligations of the guarantor including primary guarantee and indemnity provisions
5. Duration: Period of guarantee validity and circumstances affecting its continuation
6. Guarantor's Obligations: Specific duties and responsibilities including payment obligations and performance guarantees
7. Execution: Signature blocks and attestation requirements for all parties
1. Step-in Rights: Optional provisions allowing guarantor to take over lease on tenant default, typically used in high-value commercial leases
2. Limited Liability Provisions: Optional caps or limitations on guarantor's liability, typically included when negotiated with institutional guarantors
3. Corporate Authority: Optional confirmation of corporate power to give guarantee, included when guarantor is a company
1. Schedule 1 - Copy of Lease: Attached copy of the principal lease being guaranteed
2. Schedule 2 - Corporate Authorization: Board resolutions or other corporate approvals when guarantor is a company
3. Schedule 3 - Financial Information: Guarantor's financial statements or proof of means as required by landlord
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