Commerical lease - what happens if it fails?

[allygoody]

I have someone interested in renting a property that I own. They have set up a new limited company and will pay one month rent in advance. However, they do not want to identify a guarantor for future rent.

If the new limited company goes bust, do I have any protection at all? WIll I be left to put the property back at my own cost? What would be the purpose of the lease if this could happen at any point?

[islandgirl]

Why not let to them personally? Then if the Ltd company folds you can go after them as an individual. We do that a lot in my business.

[allygoody]

Why not let to them personally? Then if the Ltd company folds you can go after them as an individual. We do that a lot in my business.

They will not agree to this, which makes me fairly suspicious.... I just want to make sure that I am not being unreasonable by insisting that I get a guarantor...

[islandgirl]

That would worry me! The other option is a huge bond!