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The end of the AGA saga?

By: Language: English Series: Hogan Lovells Real Estate Quarterly ; Autumn 2011, 2-3(2)Publication details: 2011Subject(s): Summary: A recent Court of Appeal decision, "K/S Victoria Street v House of Fraser (Stores Management) Ltd" ([2011] EWCA Civ 904), clarifies for landlords, tenants and their guarantors the vexed issue of authorised guarantee agreements (AGAs) under the Landlord and Tenant (Covenants) Act 1995. It has thrown light on the the interpretation of S25 of the 1995 Act in relation to AGAs. After the above decision intra-group assignment is once again a prospect for group company tenants. Despite this, landlords are better off, now being able to demand the giving of sub-guarantees if they wish or alternatively demanding a direct guarantee for a proposed assignee.

A recent Court of Appeal decision, "K/S Victoria Street v House of Fraser (Stores Management) Ltd" ([2011] EWCA Civ 904), clarifies for landlords, tenants and their guarantors the vexed issue of authorised guarantee agreements (AGAs) under the Landlord and Tenant (Covenants) Act 1995. It has thrown light on the the interpretation of S25 of the 1995 Act in relation to AGAs. After the above decision intra-group assignment is once again a prospect for group company tenants. Despite this, landlords are better off, now being able to demand the giving of sub-guarantees if they wish or alternatively demanding a direct guarantee for a proposed assignee.

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