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Commercial Lease Guarantor Deed

A completed fictional commercial lease guarantee covering rent, service charge, AGA exposure, continuing security and guarantor protections.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# COMMERCIAL LEASE GUARANTOR DEED

Date: 2 May 2029

Parties: Rosebank Estates Ltd, Orchard Cycle Retail Ltd and Daniel Mercer

## 1. Maker and subject

Rosebank Estates Ltd (Company No. 08261493) lets Unit 4, 18 High Street, Bristol BS1 2LA to Orchard Cycle Retail Ltd (Company No. 15102844) for ten years from 2 May 2029 at an initial rent of £36,000 per year. Daniel Mercer, Orchard’s director, gives this guarantee as an individual.

## 2. Grant of rights or release

Daniel guarantees payment of all rent, service charge, insurance rent, VAT, dilapidations and enforcement costs and performance of Orchard’s tenant covenants. His liability is capped at £90,000 plus reasonable enforcement costs and is not a substitute for any rent deposit deed.

## 3. Consideration and confirmations

The guarantee is continuing security despite a rent review, concession, variation that does not materially increase Daniel’s cap, assignment or change of control. On an assignment consented to under the lease, Orchard must enter an Authorised Guarantee Agreement under Landlord and Tenant (Covenants) Act 1995 section 16; Daniel guarantees that AGA only with his written consent and within the cap.

## 4. Continuing obligations

Rosebank may demand payment from Daniel without first suing Orchard, subject to applicable law. Daniel may seek indemnity from Orchard for sums properly paid and, after payment, subrogation to Rosebank’s rights; he may not enforce against Rosebank while Orchard remains in possession and his claim would prejudice Rosebank.

## 5. Term, termination and remedies

If Orchard defaults, Rosebank gives written notice describing the amount and breach and Daniel has ten Business Days to pay monetary sums or procure a remedy where capable. Rosebank must credit recoveries and must not recover more than the guaranteed loss. Daniel receives statements of material arrears on request.

## 6. Law and reservations

This deed does not guarantee liabilities after Daniel’s release agreed in writing, fraud by Rosebank or a liability that law prevents from being guaranteed. Independent legal advice is recommended; Daniel confirms he understands the cap, AGA limitation and possibility of direct enforcement.

## 7. Execution as a deed

Daniel signs as a deed in the presence of witness Priya Nair. Rosebank and Orchard sign by authorised directors. The deed is delivered on 2 May 2029, governed by England and Wales law, and subject to the exclusive jurisdiction of the courts of England and Wales.

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