Guarantor problems, when your guarantor cannot pay or refuses

Direct answer

A guarantor agreement is a contract between your guarantor and the landlord, separate from your tenancy. The guarantor promises to pay the landlord if you cannot. If the guarantor's circumstances change, or they refuse to pay, things get complicated. The landlord can sue them in the courts, but you are still primarily liable. Talk to the landlord and guarantor as early as possible.

How a guarantor agreement usually works

When you signed your tenancy, the guarantor either:

• Signed a separate guarantor agreement with the landlord, or
• Signed the tenancy agreement as a guarantor as well.

Either way, they took on a contractual duty to pay your rent if you do not, and often to cover damage and other tenancy breaches.

What the guarantor's liability covers

Depending on the agreement, the guarantor may be liable for:

• Unpaid rent.
• Damage to the property (above the deposit).
• Lost rent if you abandon the home before the fixed term ends.
• Landlord's reasonable legal costs.
• The whole tenancy including renewals (if the wording covers that), or only the original fixed term.

Read the guarantor agreement carefully. Older agreements often have very broad wording that catches renewals; newer ones may be more limited.

When the guarantor's situation changes

If your guarantor:

• Retires and their income drops.
• Becomes ill or disabled.
• Loses their job.
• Dies.

The contract usually continues but their ability to pay changes. The landlord cannot demand more than the contract requires.

If a guarantor dies, the liability may pass to their estate (depending on the wording and the deceased's circumstances). The landlord can claim from the estate.

When the guarantor refuses to pay

If the landlord demands money and the guarantor refuses:

1. The landlord can serve a letter before action, formally demanding payment.
2. The landlord can apply to the small claims court (or higher court for bigger amounts) to enforce.
3. The court can order the guarantor to pay, plus the landlord's legal costs.
4. The court order can be enforced through bailiffs, attachment of earnings, or charging order on property.

Meanwhile, you are still liable. The landlord can chase you, your guarantor, or both. Most landlords go after both.

Limiting future liability

If you want to end your guarantor's liability:

• Reach the end of the fixed term. Many guarantor agreements only cover the original fixed term, not renewals. Check the wording.
• Negotiate a release with the landlord, especially if you are not in arrears and have a track record.
• Provide a new guarantor as a substitute.
• Pay a higher deposit in lieu of a guarantor (subject to the Tenant Fees Act cap of 5 weeks' rent).
• End the tenancy by giving notice or moving out at the end of the fixed term.

Once the tenancy ends and all sums are settled, the guarantor's liability ends.

If you are asked to be a guarantor

Before signing, check:

• The total maximum liability, including any cap.
• Whether it covers renewals of the tenancy or only the original term.
• What happens if rent goes up during renewal.
• Who can end the guarantor agreement and when.
• What you can be sued for: just rent, or also damage and costs.

You can negotiate the wording. Many landlords will accept a guarantee limited to one tenancy at the agreed rent.

You can also refuse to be a guarantor. There is no obligation. Family pressure is not a legal obligation.

Joint and several liability with guarantors

If multiple guarantors signed, they are usually jointly and severally liable with each other. The landlord can chase any one for the full amount.

The guarantors can then pursue each other privately for a share.

What if you and your guarantor cannot pay

If both of you are struggling:

• Discretionary Housing Payment from the council can help with rent shortfalls. See DHP explained.
• Universal Credit APA can get the housing element paid direct to the landlord. See UC housing element direct to landlord.
• A breathing space moratorium can pause enforcement while you get debt advice. See breathing space, housing disrepair.
• StepChange on 0800 138 1111 for free debt advice.

How we can help

If your guarantor's payment was triggered by the landlord's failure to repair (leading to a counterclaim or rent reduction), you may have a disrepair claim that affects the rent owed. Call us free on 0800 030 4669.

Free call: 0800 030 4669 | Start your claim