Yes, if the guarantor is overseas and the guarantee is governed by English law. Beneficiaries insist on it because the moment a guarantee is called is precisely the moment fast, valid service matters, and the same applies to overseas parties granting English law security such as share charges and debentures.
The guarantor is often the overseas party
In many transactions the UK end is well anchored: a UK operating company takes a lease or a facility, and the counterparty's real credit concern is the overseas parent standing behind it. The parent guarantee is English law, the parent has no address here, and so the guarantee carries its own process agent requirement, separate from anything the subsidiary provides. Landlords, lenders and trade creditors all follow the same pattern.
Security documents follow the same rule
Where an overseas entity grants English law security, for example a charge over shares in a UK company, an assignment of receivables or a debenture, the security document will name an agent so enforcement proceedings can be served domestically. On financings these documents usually shelter under the same appointment as the facility agreement, which keeps the paperwork to a single letter covering the suite.
Practical structuring
A guarantee typically wants cover for as long as claims can be brought under it, so fixed terms matching the underlying deal plus a margin are common, up to 30 years in a single payment. Where a new guarantor accedes mid deal, an additional letter of appointment is £50. Send the document list with your order form and we will structure the appointment around it.