A licence to assign an authorised guarantee agreement (AGA) is a legal document that allows a tenant to assign or transfer their leasehold interest to a new tenant along with the obligation to pay rent and other leasehold obligations. This agreement also transfers the liability for any breaches of the lease to the new tenant.

The AGA is a common legal document used in commercial property transactions. It allows the new tenant to assume responsibility for the obligations of the original tenant. This is important because landlords need to be assured that their tenants will fulfill their responsibilities throughout the lease period.

For example, if a tenant assigns their lease to a new tenant, the new tenant will be responsible for paying rent and other leasehold obligations, such as utilities and maintenance costs. They will also be accountable for breaches of the lease by the original tenant, which may include failing to maintain the property or breaching any restrictive covenants attached to the lease.

It is important to note that the original tenant will remain liable for the terms of the lease until the end of the lease term, and the landlord will still have the right to pursue the original tenant for any breaches of the lease.

The licence to assign an AGA must be executed by all relevant parties, including the landlord, the original tenant, and the new tenant. It should also include details of the lease, the assigned leasehold interest, and the obligations of all parties involved.

In conclusion, a licence to assign an authorised guarantee agreement is an essential legal document for commercial property transactions. It provides landlords with the assurance that their tenants will fulfill their leasehold obligations and transfers liability for any breaches of the lease to the new tenant. It is important to ensure that all parties involved sign the agreement and that it includes all relevant details to prevent any future disputes.