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Tessa Shepperson of Landlord Law is an accredited trainer with the
Property Investors Bureau.
Associated website:
Legal help, services and support for private residential landlords
This deed should now be used for all tenancies in England, including common law tenancies. This page has information, guidance and a link to the form document generator page.
We start with some key points which summarise the more detailed information provided below (which please also read)
In the past, most guarantees have covered the entire liability under a tenancy, including any rent arrears, damage, or loss that is actually attributable to other joint tenants.
This is because under housing law, all joint tenants are treated as ‘the tenant’ and are jointly and severally liable for the obligations under the tenancy. In practice, this means that each tenant can be held responsible for the whole of the rent and any breach of the tenancy agreement. Effectively, the tenants are guaranteeing each other.
So if a guarantor guarantees the liability of any of the tenants, they will also effectively guarantee the liability of all the tenants.
This has often been considered unfair by guarantors who understandably expect their guarantee to relate only to the person they have agreed to support.
In the past, landlords would normally require new guarantees at renewal (ie after the fixed term had ended) at which time the tenant would be given a new fixed term and the rent would also often increase.
Tenants would normally agree to this, partly because landlords had the option of recovering possession under the no-fault procedure in section 21 of the Housing Act 1988 if agreement could not be reached.
Obtaining a new guarantee in this way also avoided problems arising from the case of Holme v Brunskill (1878). This case established that a guarantor may be discharged from liability if the underlying contract between the creditor and debtor is materially varied without the guarantor’s consent. Which would be the case if the rent was increased and this was not covered by the guarantee terms.
However, under the Renters Rights Act, assured shorthold tenancies and section 21 have been abolished. It will therefore be difficult for landlords to compel tenants to sign new documentation or obtain replacement guarantees if there is any change in the tenancy.
The Landlord Law guarantee is drafted to address these issues.
First, it attempts to deal with the rule in Holme v Brunskill by making it clear that the guarantor’s liability continues despite variations to the tenancy or replacement tenancies involving the same tenant. This includes situations where the rent is increased.
Second, the guarantee explains clearly to the guarantor that the guarantee may remain in force for a long period.
At the same time, the guarantee is fairer to guarantors where there are joint tenants because it limits liability to the obligations of a specific tenant named in the guarantee (the “Guaranteed Tenant”).
For example, a parent guaranteeing a student’s tenancy will normally only wish to guarantee the obligations of their own son or daughter, rather than the obligations of the other tenants in the property.
By linking the guarantee to a specific person rather than to a particular tenancy agreement, the guarantee is also more likely to remain effective if the tenancy changes or is replaced with a new tenancy involving the same tenant.
It is therefore more likely that the Landlord Law guarantee will survive a legal challenge. Particularly if the guarantors’ overall liability is limited.
Guarantees are normally consumer contracts. When being asked to consider a consumer contract, Judges are obliged under the Consumer Rights Act 2015 to consider whether the terms of a contract are fair.
So a Judge will be looking at things like the clarity of the document and whether the terms are excessively one-sided. A guarantee which looks unfair or oppressive is more likely to be interpreted against a landlord.
However, if a guarantee is clearly explained (in ‘plain English’), the guarantor’s liability is limited to one tenant, and particularly if their liability is capped, then it is more likely to be upheld by the court.
This guarantee has been drafted to reduce the risk of problems that can arise with guarantor agreements. However, we cannot predict the arguments that may be raised in future legal challenges or how the courts may develop the law on guarantees in the future, particularly in the new legal environment created by the Renters’ Rights Act.
For this reason, landlords should still obtain replacement guarantees whenever circumstances change, if this is possible.
Your best chance of doing this will be if a tenant’s Notice to Quit has been served, and all or some of the tenants wish to remain in the property. In this situation, you will be able to insist on new guarantees, on the basis that if they fail to agree, you will not agree to let them stay (although you need to be very careful to avoid creating a new tenancy in the meantime).
For more on this, see our FAQ here.
A guarantor may be appropriate where:
You should still carry out your normal referencing checks. A guarantor is not a substitute for proper referencing.
You should always check and reference guarantors as carefully as you check and reference tenants. There is no point in having a guarantor with no income or assets!
There may be a problem with applicants from overseas, as their proposed referees may also be resident abroad. This is unsatisfactory as it is hard, if not impossible, to enforce payment under a guarantee (if the guarantor refuses to pay) where the guarantor lives outside England or Wales.
In this case, your tenant may be able to use a professional referencing company such as Housing Hand or Rent Guarantor.
It is important that you have a correct postal address and email address for the guarantor.
This is where any written request for payment under the guarantee will normally be sent.
The Landlord Law guarantee provides an option to limit or cap the guarantor’s total liability. This is done by including a clause stating that the guarantor’s liability under the guarantee and indemnity will not exceed the specified sum.
Some guarantors are more willing to sign a guarantee if their maximum potential liability is clearly limited in this way. If no limit is included, the guarantee will be unlimited.
From the landlord’s perspective, an unlimited guarantee will provide better protection. You will probably therefore only want to agree to include a financial limit if the guarantor is unwilling to sign an unlimited guarantee.
Bear in mind, though, that if a challenge is made to the guarantee, it is less likely to succeed (particularly on ‘fairness’ grounds) if the guarantor’s liability is capped.
If you decide to limit the guarantor’s liability, you should ensure that the amount chosen is realistic. A limit that is set too low may not cover the tenant’s potential liability.
For example, if the tenant stopped paying rent, it could take several months to recover possession through the courts, during which time further arrears may arise. You should therefore choose a limit that is at least equivalent to several months’ rent, or sometimes six to twelve months’ rent, depending on the circumstances.
Bear in mind that once the limit has been reached, the guarantee will no longer be effective.
The form allows the letting agent’s address to be given as the landlord’s contact address.
However, if the landlord later stops using that agent, the guarantor should be notified in writing of the landlord’s new contact details. This will help avoid any doubt about the authenticity of a request for payment made directly by the landlord.
The guarantor should always receive a copy of the tenancy agreement before signing the guarantee.
This is important because the guarantee refers to the obligations contained in that agreement. If the guarantor has not had the opportunity to read it, they may later argue that they did not understand what they were guaranteeing.
If the guarantee is given to the tenant to pass on, it is not unknown for the tenant to forge the guarantor’s signature.
If that happens, the guarantee will be unenforceable.
For this reason, you should send the guarantee deed directly to the guarantor rather than via the tenant.
This avoids certain legal arguments about the enforceability of the guarantee. To create a deed:
The witness must be independent. They should not be a party to the tenancy agreement or a close family member of the guarantor.
There is government guidance on deeds here, but note it is very technical and provides more detail than you need.
The guarantor should normally write the date at the top when they sign the deed. This should be the actual date on which the guarantor signs the document.
If the deed is signed by more than one guarantor, the last guarantor to sign should write in the date.
It is good practice for the landlord or agent to check that the date has been completed before the tenancy begins and to keep a copy of the signed deed with the tenancy documents.
Where the deed is signed electronically, the electronic signing system will normally insert the date automatically.
To avoid legal arguments later, the guarantee should normally be signed before the tenancy agreement is completed.
If it is signed afterwards, there is a risk that the guarantor could argue that the document is not legally binding because they received no consideration.
However, if the document is properly signed as a deed, this normally avoid this problem.
See our FAQ for guidance on increasing rent. It is not normally necessary to obtain a new guarantee if this form of deed has been used as the guarantor has already agreed that the guarantee will continue if the tenancy terms change.
However, it is a good idea to notify the guarantor of the rent increase, perhaps by sending them a copy of your section 13 notice. This helps ensure transparency and reduces the risk of disputes later.
If the tenant fails to pay rent or breaches the tenancy agreement:
Under the deed, the guarantor must pay within 14 days of receiving a written request.
You will find draft letters you can use in Stage 5 of the Rent Arrears Action Plan.
The guarantor’s liability continues while the Guaranteed Tenant remains a tenant or occupier of the property.
If the tenant leaves and the tenancy ends, the guarantee will normally end at that point.
However, the guarantor will still be liable for losses arising before the guarantee ended, provided the landlord makes a claim within the eight week time specified in the deed.
This guarantee is designed to continue if:
However, the guarantor remains responsible only for the obligations of the Guaranteed Tenant.
If at all possible, though, you should try to get the guarantor to sign a new guarantee deed when any changes are made.
If the Guaranteed Tenant leaves the property and the tenancy ends, then the guarantee will also end, as it only guarantees the Guaranteed Tenants liability, and the liability will end if he vacates the property at the end of the tenancy.
For example, if the tenant gives a Notice to Quit ending the tenancy.
If the guarantor asks to be released from the guarantee, then it is up to you whether you agree or not. If the tenant has proved to be a good tenant who pays you promptly, you may be willing to do this.
Otherwise, you may only be willing to release the guarantor if the tenant can arrange for a replacement guarantee with a reputable guarantor.
If the landlord is granting a substantially different tenancy arrangement, then it is likely that the Landlord Law guarantee may not cover this situation and will lapse.
Landlords should keep the following records:
These documents will be needed if the landlord later needs to enforce the guarantee.
A guarantor should not be used as a substitute for proper management
A guarantor is a safety net, not a substitute for good landlord practice.
Landlords should still:
This guarantee was originally drafted for assured tenancies, but also works well for unregulated tenancies. Such as company lets and lets with a resident landlord.
For company lets, the form includes some additional wording to record the company number, so that the identity of the tenant company is clear. It also clarifies how a company can be said to “occupy” the property, as occupation will normally be through its directors, employees or other authorised personnel.
Note that if the property is let to a company so that the company can sublet it to other occupiers, rather than for use by its own staff or officers, this is usually known as a rent-to-rent arrangement and is a different type of tenancy.
Most rent-to-rent arrangements are not recommended following the changes introduced by the Renters’ Rights Act 2025. Landlords should always take specialist legal advice before entering into this type of arrangement.
Guarantor agreements are sometimes found to be unenforceable, usually because they have not been prepared or used correctly.
Common problems include guarantees that were not signed as a deed, guarantors who were not given the tenancy agreement before signing, or tenancies that were later varied or replaced without the guarantor’s consent.
The Landlord Law guarantee has been drafted to reduce some of these risks. However, landlords still need to ensure that the document is used properly and that the guidance above is followed carefully.
Find this linked below. But before using it please read the guidance on this page carefully.
Tessa Shepperson of Landlord Law is an accredited trainer with the
Property Investors Bureau.
Associated website: