A third party who contractually undertakes to meet the tenant's obligations if the tenant defaults, strengthening the landlord's covenant.
Related terms
- Headline rent
The quoted rent before deducting incentives such as rent-free periods.
- Heads of terms
A non-binding summary of the principal commercial terms agreed in principle before lawyers draft the lease or sale contract; also called a term sheet or letter…
- Inducement
A financial incentive offered by a landlord to secure a letting, such as a fit-out contribution, capital payment, or rent-free period; heavily used in soft Gul…
- Landlord representation
Advisory acting on behalf of an owner to lease and market space.
- Lease assignment
The transfer of a tenant's entire leasehold interest to a new tenant, who steps into all the lease obligations; usually requires the landlord's prior consent.
- Licence to occupy
A personal permission to use space that grants no exclusive possession or leasehold estate; more flexible and easier to terminate than a lease, common for shor…
- Make-good
The tenant's obligation to strip out fit-out and restore the premises to an agreed condition at lease end; the Gulf and Asia-Pacific term for reinstatement.
- Net lease
A lease in which the tenant pays some or all operating costs on top of base rent.