Decision highlights risk to landlords of inadvertently releasing a guarantor

Eversheds has commented on the UK Court of Appeal decision in Topland Portfolio 1 v Smiths News Trading.

The UK Court of Appeal has confirmed that a guarantor can be released from liability where a landlord and tenant enter into a licence for alterations, if the effect of the licence is to vary the lease terms without the guarantor’s consent.

James Batham, partner and head of retail at Eversheds, said: ‘The Court of Appeal’s decision highlights the risk to landlords of inadvertently releasing a guarantor. The law on the release of guarantors is not favourable to landlords and so the utmost care should be taken when negotiating any document that could affect obligations under the lease. Rent reviews and concession agreements in particular can have unintended consequences.’

  • Print

Briefings from Eversheds

  • Market abuse regime

    The current EU market abuse regime is in line for an overhaul. It is anticipated that the implementation of the new proposals may not come into force until 2016.

  • Unfair relationships — what does the future hold?

    The ‘unfair relationship’ concept in respect of credit agreements was introduced into the Consumer Credit Act 1974 on 6 April 2007.

View more briefings from Eversheds

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

1 Wood Street
London
EC2V 7WS
UK
http://www.eversheds.com

Turnover (£m): 376.00
No. of Lawyers: 1,264
No. of Lawyers (Asia Pacific): 68
Offices (Asia Pacific): 3

Jobs

View all jobs from this firm