Guarantor for fixed term or duration of tenancy?

Guarantor for fixed term or duration of tenancy?

9:46 AM, 16th November 2020, About 3 years ago 4

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I read an article on here a couple of weeks ago about landlords now taking a guarantor as extra security regardless of whether the tenants pass their own referencing or not.  I thought this is a very good idea, so I have just signed up some new tenants with a homeowner guarantor.

The guarantor has now asked me if the guarantee is for a fixed term, say 6/12 months or is it for the length of the tenancy. I have replied that it is for the length of the tenancy!

My question is am I correct in telling him this and are other landlords doing similar?

I feel that in these times when landlords have been stripped of any protection whatsoever, we need to do something extra to mitigate the risk.

Many thanks for your thoughts.


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Ian Narbeth

10:33 AM, 16th November 2020, About 3 years ago

Hi Ashleigh, please have a look at my article here: The NRLA have changed their deed of guarantee so if you are using it, make sure you have the current version.
Unless the guarantee endures you lose all the benefit of it when the fixed term ends. A tenant cannot be compelled to sign a new tenancy and there is no obligation on the guarantor to re-sign the replacement tenancy. Even if the tenant agreed to procure a new guarantor, breach of that obligation simply entitles you to seek to forfeit the tenancy. Good luck getting to court anytime soon.

Robert M

13:50 PM, 16th November 2020, About 3 years ago

Hi Ashleigh

Good move in getting a guarantor.

It all depends on the exact wording of your Deed of Guarantee document. What does it say about the continuation of the guarantee (guarantor's liabilities) beyond the initial fixed term?

As Ian has pointed out, if you have used an old version of the NLA/RLA/NRLA deed of guarantee then you may not be covered beyond the initial fixed term, but if you have used their latest version then I guess it will continue until such time as the tenant moves out.


20:18 PM, 16th November 2020, About 3 years ago

Hi Ian and Robert, yes I have used the updated version of the guarantee deed from NRLA. I just wondered if other landlords are doing similar as to me it’s now a no brainier! Surely we need all the extra security we can get.


14:01 PM, 19th November 2020, About 3 years ago

The only one I have signed on behalf of a young family member endured for the duration of the tenancy even after my death. Suggest you read it, we can't tell you on here what yours says. If it doesn't endure for the whole tenancy, next time get a better one, you can download them from various legal sites.

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