Here is a question to the blog clinic from Lisa who is a tenant
My short hold tenancy expired in August 2012. It has not been renewed but I have also not been given notice to quit the property.
At present I have some rent arrears due to the shortfall from housing benefit. They have now started contacting my gaurantor. Is this valid with my tenancy being expired.
Lisa, if you stay on after the end of the fixed term of a tenancy, it will automatically run on as a ‘periodic’ tenancy under the terms of the Housing Act 1988. It is just the fixed term which has expired not the tenancy.
Whether your guarantor is still liable however will depend on the terms of the guarantee deed he signed. it is impossible to say without seeing it.
What I can say however is that if the tenancy has changed in any way, for example if the rent has increased, then that will cancel the guarantee. As the tenancy will be different from the one the guarantor agreed to guarantee. However from what you say, it looks as if this is not the case.
Tessa Guarantor liability depends entirely on how the original guarantee is written.
There are conflicting opinions on enforceability of a Guarantee even if it is opoen ended, covers new fixed terms, increases in rent and so on.
There is even an old case law from about 1913 something to do with De la Croix or someone which is often quoted as purporting to allow a Guarantor to escape at the end of the term. However what is often overlooked in that decision is that it says only if the Guarantee allows the Guarantor to!!
A Guarantor is a fool with a fountain pen. Aklways has been and always will be. Unless what is demanded of them is Draconian and light years beyond wehat they originally agreed I’d suggest a well drafted if extensive Guarantee freely entered into after advising the Guarantor to take legal advice both in a covering letter and the Guarantee itself is pretty watertight.
On that basis in 20 years I have never had anyone successfully challenge the one I recommend