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ARTICLE · 21 MARCH 2018

A Global Perspective On Commercial Lease Covenants

Travers Smith LLP
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The UK's real estate market attracts significant levels of investment from across the world, and many global corporate occupiers.

United KingdomReal Estate and Construction
Andrew Ross
Andrew Ross
Emma Pereira
Emma Pereira
Sarah Quy
Sarah Quy
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The UK's real estate market attracts significant levels of investment from across the world, and many global corporate occupiers. It is not unusual for one or more of the landlord, tenant or guarantor in a commercial letting to be an entity based outside England and Wales. How easy is it for a UK party to enforce the lease covenants of an overseas counterparty? Are there any other points to note when entering into a lease with a foreign entity? Below are some broad principles to bear in mind when considering dealing with an overseas counterparty.

ENFORCING IN THE UK

There may be no need to take action outside the UK against a non-UK counterparty. Does it have a centre of business or any assets in England and Wales? Did it provide a rent deposit or a UK-based surety or did a UK company give an authorised guarantee agreement (AGA)? If so, enforcement of a judgment may be carried out in the UK and be no more difficult than claiming against a UK counterparty.

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