The Guarantor Lease Agreement is a crucial document in property letting, particularly common in student lettings and situations where tenants have limited credit history or financial standing. Under English and Welsh law, this agreement creates a legally binding commitment from a guarantor (often a parent or family member) to assume responsibility for the tenant's obligations if they default. The agreement typically covers the entire duration of the lease and includes specific terms about the extent of the guarantee, conditions for the guarantor's liability, and the process for enforcing the guarantee.
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1. Parties: Identifies and defines all parties: Landlord, Tenant, and Guarantor
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Demise: Details of the property being leased
5. Term: Duration of the lease
6. Rent and Payment Terms: Rent amount, payment schedule, and methods
7. Guarantor Obligations: Specific obligations and extent of guarantee
8. Tenant Covenants: Tenant's obligations under the lease
9. Landlord Covenants: Landlord's obligations under the lease
1. Break Clause: Early termination provisions - use when parties want flexibility to end lease early
2. Rent Review: Provisions for adjusting rent - typically included for longer-term leases
3. Service Charge Provisions: Details of service charges and calculations - include for properties with shared facilities or services
1. Property Description Schedule: Detailed description of the property including floor plans and photographs
2. Inventory Schedule: List of fixtures, fittings, and contents
3. Guarantor's Statement of Worth: Financial information demonstrating guarantor's ability to meet obligations
4. Permitted Use Schedule: Specific terms about how the property may be used
5. Service Charge Schedule: Breakdown of service charges and calculation methods
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