Real Estate Tip of the Week: Gordon Ramsay's Agency Nightmare
Gordon Ramsay has lost his claim that he was not bound by a personal guarantee for the £640,000 annual rent for his North London restaurant and small hotel, the York & Albany.
Published 23 February 2015
It is well known amongst landlords that outgoing tenants will be released from their liability under a lease when that lease is lawfully assigned to a third party (subject to any authorised guarantees given). However, landlords do not benefit from an automatic release, and will therefore remain liable on their covenants in a lease even after they have sold the reversion, unless and until they are expressly released. Recent case law has upheld this position.
By Kerri Tyler