How Long Does an Authorised Guarantee Agreement Last

As a property owner, it’s important to understand the legal agreements that come with the purchase or lease of a property. One of these agreements is the Authorised Guarantee Agreement (AGA), which is commonly used in commercial leases. In this article, we’ll answer the question “how long does an Authorised Guarantee Agreement last?” and provide some important information about this legal document.

What is an Authorised Guarantee Agreement?

An Authorised Guarantee Agreement (AGA) is a legal document that is signed by a tenant who is transferring their leasehold to another tenant. The purpose of the AGA is to ensure that the new tenant takes on the responsibilities of the old tenant, including payment of rent and other obligations. Essentially, an AGA provides a guarantee that the new tenant will fulfill all of the obligations of the lease.

AGAs are often used in commercial property leasing to protect the landlord’s interests and ensure that they receive rent for the entire lease term. They are typically used when a tenant wishes to assign their lease to another tenant, as this allows the landlord to maintain control over the property and ensure that all obligations are met.

How long does an Authorised Guarantee Agreement last?

The length of an Authorised Guarantee Agreement depends on the length of the lease it is attached to. If a lease has a term of 25 years and an AGA is signed, the AGA will also last for 25 years. Similarly, if a lease has a term of 10 years, the AGA will last for 10 years.

It’s important to note that an AGA can only be used for the duration of the lease term it is attached to. Once the lease has expired, the AGA is no longer valid and the tenant is no longer responsible for its obligations.

What are the obligations under an Authorised Guarantee Agreement?

The obligations under an Authorised Guarantee Agreement are detailed in the lease it is attached to. Typically, these obligations include payment of rent, payment of service charges, repair and maintenance of the property, and compliance with all legal requirements and regulations.

If the new tenant fails to fulfill any of these obligations, the landlord can take legal action to enforce the terms of the lease and the AGA. This can include seeking damages for non-payment of rent or repairing damage caused to the property.

In conclusion, an Authorised Guarantee Agreement lasts for the duration of the lease it is attached to. It’s an important legal document that protects the interests of both landlords and tenants in commercial property leasing. If you have any questions about an AGA or any other legal agreements related to property ownership, it’s best to consult with a legal professional.