Lease Guarantee Agreement for the United Kingdom
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Lease Guarantee Agreement
"I need a Lease Guarantee Agreement for our retail property in Manchester where a parent company will guarantee a 10-year commercial lease starting March 2025, with specific provisions for step-in rights if the subsidiary tenant defaults."
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1. Parties: Identification of guarantor, landlord, and tenant (if applicable)
2. Background: Details of the underlying lease and circumstances requiring guarantee
3. Definitions: Key terms used throughout the agreement including 'Lease', 'Guaranteed Obligations', 'Property'
4. Guarantee and Indemnity: Core obligations of the guarantor, including primary guarantee and indemnity provisions
5. Duration: Term of the guarantee and when obligations commence and cease
6. Preservation of Guarantee: Circumstances under which guarantee remains valid despite changes to underlying lease
7. Guarantor Restrictions: Limitations on guarantor's rights of subrogation and contribution
1. New Lease Provisions: Obligation to take new lease if original lease terminated - used when landlord requires additional security in case of tenant insolvency
2. Corporate Guarantor Provisions: Specific warranties and maintenance of net asset requirements - used when guarantor is a corporate entity
3. Step-in Rights: Rights of guarantor to take over lease - used when guarantor wants ability to assume tenant's position
1. Copy of Lease: Complete copy of the underlying lease being guaranteed
2. Guarantor Board Resolution: Corporate authorization for guarantee (if corporate guarantor)
3. Property Details: Detailed description of property subject to lease
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