Personal Guarantee Form For Commercial Lease Template for England and Wales

A Personal Guarantee Form for Commercial Lease is a legally binding document under English and Welsh law where an individual (typically a company director or shareholder) personally guarantees the obligations of a tenant company under a commercial lease. The guarantee creates a secondary obligation whereby the guarantor becomes personally liable for the tenant's obligations, including rent payments, maintenance responsibilities, and other lease covenants, should the tenant default on these obligations.

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What is a Personal Guarantee Form For Commercial Lease?

The Personal Guarantee Form For Commercial Lease is commonly used in commercial property transactions within England and Wales when landlords require additional security beyond the tenant company's covenant. This typically occurs when leasing to new businesses, companies with limited trading history, or in high-value commercial properties. The document details the guarantor's obligations, the extent of liability, duration of the guarantee, and circumstances under which the guarantee can be enforced. It serves as a crucial risk management tool for landlords while enabling businesses to secure commercial premises they might otherwise be unable to lease.

What sections should be included in a Personal Guarantee Form For Commercial Lease?

1. Parties: Identifies the guarantor, landlord, and tenant with full legal names and addresses

2. Background: Explains the context of the guarantee and references the main lease

3. Definitions: Defines key terms used throughout the guarantee

4. Guarantee and Indemnity: Core obligations of the guarantor including payment and performance guarantees

5. Duration: Period for which the guarantee remains effective

6. Execution: Signature blocks and witness requirements

What sections are optional to include in a Personal Guarantee Form For Commercial Lease?

1. Joint and Several Liability: Required when multiple guarantors are involved to establish shared responsibility for the guaranteed obligations

2. Step-in Rights: Provisions allowing guarantor to take over lease if tenant defaults, including conditions and process

3. Limitation of Liability: Specific provisions capping or limiting the guarantor's liability under certain circumstances

What schedules should be included in a Personal Guarantee Form For Commercial Lease?

1. Schedule 1 - Copy of Lease: Attached copy of the main lease being guaranteed

2. Schedule 2 - Financial Information: Details of guarantor's financial status and supporting documentation

3. Schedule 3 - Specific Guaranteed Obligations: Detailed list of specific obligations being guaranteed if not all lease obligations are covered

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Guarantee Agreement

Sector

Banking

Cost

Free to use

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