Guarantees on property leases are less common than bank guarantees, but still exist for many businesses trading from leased property.
Also you need to be wary of previous leases which may have been assigned to another company but for which you may still guarantee the original lease.
Landlord’s do have a duty to mitigate their loss by trying to get the property re let, but this can be difficult in these troubled times and even if re let, there may be a difference in the rent the landlord can achieve now, compared to the lease you guarantee. If so you will remain responsible for the difference.
Landlords can become somewhat enthusiastic in making claims under guarantees; particularly in relation to dilapidation claims. If necessary, we have access to surveyors and property professionals who can assist in challenging overvalued claims.
As ever, the important thing is not to ignore the problem and take advice at an early stage.
Call us to discuss your situation and we will do our very best on your behalf.