This clause makes you personally responsible for paying rent if the person you sublet to stops paying. Even though you're no longer the main tenant, you're guaranteeing their rent obligations. This matters because landlords use it to ensure they get paid no matter what happens with the subtenant. In UK law, this is a common requirement when you assign (transfer) a lease to someone else—the landlord wants a safety net. For example, if you sublet your shop to a new business owner and they go bankrupt after three months, you'd have to pay the remaining rent yourself.
Try to limit this to a fixed period (like 12 months) rather than the entire remaining lease term. Negotiate that you're only liable if the subtenant actually defaults, not for other breaches like damaging the property. Get written confirmation from the landlord when the subtenant's rent is paid on time for a set period, so you can eventually be released from this obligation. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause makes you personally responsible for paying rent if the person you sublet to stops paying.
Why should I care about this clause?
Even though you're no longer the main tenant, you're guaranteeing their rent obligations.
What are my options?
This matters because landlords use it to ensure they get paid no matter what happens with the subtenant.
How does this affect small businesses?
In UK law, this is a common requirement when you assign (transfer) a lease to someone else—the landlord wants a safety net.