Using a guarantor

You might need a ‘guarantor’ so you can rent a place to live. A guarantor is someone who agrees to pay your rent if you don't pay it, for example, a parent or close relative. 

If you don’t pay your landlord what you owe them, they can ask your guarantor to pay instead. If your guarantor doesn’t pay, your landlord can take them to court.

Your landlord might want to check your guarantor is able to pay the rent in the same way they've checked your ability to pay. For example, by carrying out a credit check.

There is a legal requirement for a guarantee agreement to be in writing. The agreement sets out the guarantor's legal obligations.

Is a guarantor only liable for unpaid rent?

It depends on what the agreement says. In many cases, a guarantee agreement also extends to other conditions under the tenancy - for example, any damage caused to the property.

If an agreement does extend to other conditions of the tenancy, then it's best that the guarantor checks the tenancy agreement. This way they can see exactly what obligations they are guaranteeing.

Does the guarantor have to live in the UK?

Landlords will usually want a guarantor who lives in the UK, as it's easier for them to take legal action against a UK resident if they need to.

This might present a problem for you if you're coming from abroad - for example, if you're an international student. If you can't get a guarantor who lives in the UK, you might be asked to pay more rent in advance or alternatively we can offer you the use of a company guarantor to stand in place. 

Guarantors of tenants who live in shared accommodation

If you share accommodation with other tenants under one tenancy agreement, that is, a joint tenancy, it's common for the guarantee to apply to all of the rent, and not just your share.

It's best to check the guarantee agreement carefully and ask the landlord or agent any questions if something is unclear. As soon as the agreement is signed, the guarantor is bound by its terms and conditions.

It might be possible to negotiate with the landlord for a change to a guarantee agreement. This would ensure that the guarantor's liability was confined to only your rent payments or any damage caused by you.

When the guarantor's liability ends

This depends on what the guarantee agreement says or what is agreed verbally.

Many guarantee agreements are open-ended and will refer to liability ‘under this tenancy/agreement’. This means that liability could extend beyond the fixed period, to any extension, as well as to certain changes such as rent increases.

If this is the case, the guarantor’s liability might continue for as long as the tenancy exists and will only end if the tenancy is legally ended by:

- service of a valid notice to quit by the tenant, or

- by the mutual surrender of the tenancy between the landlord and tenant, or

- a possession order from the court

It might be possible to argue that an open-ended guarantor agreement is not enforceable, but a court would have to decide this.

Want to know more about liability in the position of a guarantor read more here.