9 October 2020
Amid the more obvious COVID-19 crisis impacts, Authorised Guarantee Agreement (AGA) liabilities have caught some key players unawares, and are now making many tenants and landlords assess how they put security packages in place.
Without a firm handle on AGA deadlines, many tenants are simply guilty of forgetting or assuming that liability under previous lettings has long ended. But the pandemic, and resulting crisis hitting the retail and hospitality sectors, is resurrecting old liabilities. We have all seen high-profile sinkings in recent months, and the parties who assigned to those corporates with AGAs, often many years ago, are facing considerable demands for rent in their wake.
Emma, Lauren and Clare discuss how tenants and landlords are starting to question the business value of providing an AGA, or even taking one.
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by multiple authors