Real Estate Talking Point: The sorry AGA saga and the law of unintended consequences
"[A] guarantor is absolutely precluded from becoming the assignee on an assignment by the tenant whose covenants he is guaranteeing."
The appeal in the case of EMI Group Limited v O&H Q1 Limited was due to be heard by the Court of Appeal last month but – unfortunately for the property industry – the parties have settled. As such, for now at least, the Court of Appeal will not have the opportunity to consider the difficult questions posed by the Landlord and Tenant (Covenants) Act 1995 (the “Act”). Where does that leave us?
In this alert Siobhan Burton discusses the recent cases on Authorised Guarantee Agreements under the LTCA 1995 and asks where are we now that the EMI case has settled?
Read our full sorry AGA saga article.