When does a Guarantee end?

 

 

If the tenancy is for a fixed term, then the Guarantee applies for the whole of that term and the Guarantor can not opt out during the term. If the Tenancy Agreement becomes periodic following this term, by the landlord and tenant agreeing to continue the tenancy without signing a new contract; the Guarantor will still be the Guarantor for this periodic tenancy. However, when the fixed term is over they can terminate the agreement by writing to the landlord. The Guarantor should give ‘reasonable’ written notice that he/she no longer wishes to be bound by the terms of the deed of guarantee (beyond the fixed term).

 

If the landlord and tenant sign a new tenancy agreement, or the terms of the existing one are changed, such as if the rent is increased, the Guarantee will automatically be cancelled. In this case the landlord will need the Guarantor to sign a new guarantee form. The Guarantor can only be held responsible for tenant’s liabilities under the terms of the tenancy agreement they have seen and agreed to. If these terms are changed, they must approve this before they can be held liable under it.

 

A Guarantor agreement is also terminated in the event of a death of either the tenant or the guarantor.