Court of Appeal decision on reasonableness of requirement for guarantor
The Court of Appeal has given judgment in Landlord Protect Ltd v St Anselm Development Co Ltd [2009] EWCA Civ 99 in which Martin Rodger QC represented the Respondent tenant. The Court held that a landlord could not reasonably require a guarantor of the liabilities of a proposed assignee to undertake a liability extending beyond the period during which the term would be vested in that assignee. The landlord had therefore acted unreasonably in requiring, as a condition of its consent to assignment of the lease, that a guarantor to be provided by the proposed assignee would only be released from his guarantee in the event of a subsequent assignment of the lease if "reasonable alternative security" was provided.
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