The landlord had taken a guarantee of the lease from the tenant when granting a licence to assign to the new tenant. That new tenant had become insolvent and the liquidator had disclaimed the lease. The court considered the position under Hindcastle after the 1995 Act.
Held: The guaranteer’s appeal succeeded. The effect of the 1995 Act was to preserve the obligation so far as third party obligations were concerned, and therefore the guarantor’s obligations survived the disclaimer.
Lord Justice Mummery, Lord Justice Stanley Burnton and Lord Justice Elias
 EWCA Civ 279
Landlord and Tenant (Covenants) Act 1995, Insolvency Act 1986 178(4)
England and Wales
Cited – Stacey v Hill CA 1901
The surety for performance of the tenant’s covenants under the lease which was ‘to remain in force concurrently with the lease for a period of five years’ was discharged by the disclaimer of the lease by the insolvent tenant’s liquidator. The lease . .
Cited – Hindcastle Ltd v Barbara Attenborough Associates Ltd and Others HL 22-Feb-1996
The guarantor of an original tenant under the lease remains liable after the disclaimer the lease on insolvency. The disclaimer operates to determine the lease altogether with the result that the landlord’s reversion is accelerated. ‘In order to . .
Cited – Basch v Stekel and Another CA 25-Jul-2000
The deceased had given a guarantee of the tenant’s covenant given by his company under a lease. The court was asked whether the obligations under the guarantee survived his death after he company was wound up.
Held: Chadwick LJ explained the . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant, Insolvency
Updated: 01 November 2021; Ref: scu.330951