Is this guarantor still bound by the guarantee after the rent increased?

This is a question to the blog clinic from Alison who is a guarantor in England.

I signed up to be a guarantor for a friend’s rent 7 years ago on a 6 month short-hold tenancy.

They informed me in early October that the rent had increased from 500 to 620.  Two months after this came into effect I called them and said I believed my liability ended after 6 months. They have told me that the tenancy has rolled to periodic and that I’m liable until they either die or vacate the property

It does state in small print that if not renewed, it will go to periodic and mention rent increases.

I’m sick with worry they won’t release me from this and have also allowed dogs into the property now.

They have told me that the only way to dissolve this is for them to evict the tenant, with me paying all costs.

Any advice would be appreciated.

Answer

I don’t think you need worry. The guarantee will have ended when the rent increased as the tenancy was then no longer the tenancy you guaranteed.

You guaranteed a tenancy at a rent of £500 per month. You did not agree to guarantee a tenancy with a rent of £620.

The terms of the guarantee may have tried to continue your liability after a rent increase, but my view is that this clause will be unenforceable as it is an unfair term under the Consumer Rights Act 2015.

It is inherently unfair for someone who signs a guarantee on the basis of one rent to become liable for a higher rent where they have not specifically agreed to this – for example by signing a new guarantee citing the higher rent.

There is no need to do anything about this. Just refuse to pay if demand is made upon you, saying that due to the price increase, the guarantor is no longer enforceable.