AST Guarantee and Indemnity for Corporate Guarantor
This AST Guarantee and Indemnity for Corporate Guarantor is a short agreement in which the company undertakes to pay the rent and remedy any breaches if the tenant fails to do so.
It also includes an indemnity which is a separate obligation to the guarantee, which provides greater protection for the Landlord. An indemnity obliges the guarantor to compensate the Landlord for loss or damage and is not dependent on the tenant's obligation being enforceable.
This template is for a corporate guarantor, such as a company, government body or other institution. It is designed to be used in connection with one of our Assured Shorthold Tenancy Agreement templates.
Landlords are likely to ask for a guarantor if the tenant does not have a satisfactory financial record.
It is important that a copy of the proposed tenancy agreement be attached to the document so that it is absolutely clear what the guarantor is committing to.
Under the Tenant Fees Act 2019 (affects England only) and the Renting Homes (Fees etc.) (Wales) Act 2019 (affects Wales only) landlords and/or letting agents are prohibited from charging any fees associated with requesting a guarantor to a tenancy caught by these acts (this includes referencing fees and administration fees).
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
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