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Track your progress >LANDLORD AND TENANT - Surety released from lease because it had not been a party to a licence for alterations (Court of Appeal)
The Court of Appeal has upheld the High Court decision that a surety had been released from its obligations under a lease due to the variation to the lease in a licence for alterations to which the surety had not been a party and had not consented.
The court held that:
- The licence had the clear potential to increase the tenant's obligations and therefore also potentially increased the surety's obligations in the event of the tenant's default.
- There was no forbearance by the landlord and the licence did not amount to the giving of time by the landlord to the tenant.
