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AGA
An Authorised Guarantee Agreement (known as an "AGA") is an agreement incorporated into a lease where the first or outgoing tenant (A) agrees to guarantee the performance of the terms of the tenancy by the assignee (in practice, remaining liable for the rent and other terms of the tenancy) for the duration of the assignee (B) interest in the tenancy. When (B) assigns to (C), A's liability ceases and B becomes the guarantor for C, and so on. In the event of assignee default, the AGA will normally entitle the guarantor to take over the remainder of the term of the tenancy.
AGAs were introduced in January 1996 when the law relating to privity of contract was reformed, per the Landlord and Tenant (Covenants) Act 1995.
The tenant cannot be required s to give such a guarantor unless the lease expressly provides for an AGA.
AGAs were introduced in January 1996 when the law relating to privity of contract was reformed, per the Landlord and Tenant (Covenants) Act 1995.
The tenant cannot be required s to give such a guarantor unless the lease expressly provides for an AGA.