Challenging a tenancy guarantee debt
A guarantor for a tenancy can challenge the debt if the guarantee was not executed correctly, contains unfair terms or was signed under undue influence.
What is a guarantee
A guarantee is an agreement where a guarantor agrees to be responsible for another person’s debt or obligations if they fail to meet them.
A guarantee is a form of surety, like an indemnity or a bond. It is not a credit agreement in its own right. A guarantor does not receive any benefit for providing the surety.
Guarantor agreements are governed by contract and common law along with some case law.
What is a tenancy guarantee
A tenancy guarantee is an agreement between a landlord and and a guarantor. The guarantor agrees to be responsible for a tenants rent or other financial obligations if a tenant fails to pay.
Written agreement
A guarantee agreement must be in writing and signed by a guarantor.[1] Electronic signing is permitted.[2]
A guarantee can be included as a clause within the tenancy agreement or this could be a separate written contract signed by a guarantor.
Find out more about guarantors for tenancy agreements on Shelter Legal.
What does a tenancy guarantee cover
A tenancy guarantee covers the terms agreed to by a landlord and tenant in the initial tenancy agreement.
A tenancy is entered into when a landlord and tenant agree to terms of an agreement in relation to a property. A tenancy could begin as a fixed-term agreement or a periodic agreement.
When a guarantee ends
A guarantee liability normally ends at the end of the tenancy or at the end of the initial fixed term, unless it explicitly covers renewal or a periodic tenancy.
If a tenancy agreement is periodic from the offset, a guarantee normally continues until the tenancy is ended.
Where a tenancy agreement allows for renewal or periodic continuation a guarantor's liability could continue.
A guarantor has no right to end the tenancy agreement.
Variations to a guarantee agreement
A landlord cannot enforce a change to a guarantee unless the guarantor agrees to it. If the change is minor and does not disadvantage the guarantor, it could still be enforceable.[3]
Rent increases in a guarantee agreement
A rent increase can be enforceable if the tenancy includes a rent review clause and the guarantee covers rent due ‘under the tenancy’ (or similar).[4]
If a fixed-term tenancy becomes a statutory periodic tenancy, any rent review clause from the original agreement no longer applies.[5]
To check a tenancy type use the tenancy checker tool on Shelter Legal.
When the landlord can enforce the guarantee
A guarantee becomes enforceable when a tenant breaches a term covered by the guarantee, such as failing to pay rent.
Before the tenant defaults, the guarantor's liability is a contingent liability, because it relies on the tenant failing to pay. The guarantor's liability to pay the debt crystallises if the tenant defaults. This means a guarantor's contingent liability has turned into a debt that a landlord can enforce.
Find out more about contingent debts in insolvency on Shelter Legal.
How the landlord can enforce the guarantee
A tenant and guarantor are jointly liable for the debt. That means a landlord can pursue either or both of them to recover unpaid debts.
A landlord can make a County Court claim against a guarantor to recover unpaid debts.
Before starting court proceedings, a landlord must send a guarantor a letter of claim following the pre-action protocol for debt claims.[6] If a landlord and guarantor do not reach an agreement or if a guarantor fails to respond to the pre-action protocol letter, the landlord can start court proceedings to recover the debt.
Effect on a guarantor's credit score
A guarantee agreement is not registered on a guarantor’s credit reference file, so their credit rating is not affected if they fail to pay when asked. The debt is only registered if a landlord issues a court claim and gets a County Court judgment against the guarantor.
How a guarantor defends the debt
A guarantor must respond to a money claim or the court will automatically issue a judgment.
A court will review the claim and any defence, then make an order or list a hearing.
Find out more about the money claims process on Shelter Legal.
Defences to guarantee debts
A guarantor is not liable for a guarantee debt if the guarantee is invalid. A court requires clear evidence to accept this defence.
A guarantee could be invalid if:
it was not executed as a deed where required
the guarantor's liability has already ended
the claim is based on an unfair term
there have been changes to the tenancy such as a rent increase
it was signed under undue influence
When a guarantee is executed as a deed
Where the tenancy already exists before a guarantee agreement is signed, the guarantee must be drawn up and executed as a deed. A deed must be used, because a guarantee given after the tenancy has no consideration, meaning it cannot be enforced as a contract. This applies whether or not the tenant has moved in.
A deed will be valid if:[7]
the document makes it clear it is intended to be a deed
it is signed by the guarantor
the guarantor’s signature is witnessed at the point of signing
The absence of a date does not invalidate a deed.[8]
Guarantor's liability has ended
A guarantor could have a defence if the debt accrued after their guarantee liability had ended. For example, if a guarantee is limited to a fixed-term contract and rent arrears accrued after the fixed-term had ended.
Claim based on unfair term
Consumer protection rules apply to tenancy and guarantor agreements.[9]
A term that is found to be unfair is not enforceable. The rest of the agreement would remain valid.[10]
Where a guarantee does allow variations, the court may release the guarantor from any additional liability if it substantially exceeds the amount they initially agreed to.[11] For example, where there has been a rent increase.
If a guarantee purports to cover ‘any extension or variation’ to the tenancy this might be an unfair contract term, and unenforceable.
Find out more about unfair terms on Shelter Legal.
Changes to the tenancy
A guarantor could have a defence if the terms of the tenancy have changed significantly to when the guarantee was signed. For example, if the rent has been increased and there was no provisions for this in the guarantee.
Guarantee signed under undue influence
A court can discharge a guarantor from liability if the guarantor signed under undue influence. This includes situations where someone abused a position of trust or applied pressure to obtain the guarantee.
Undue influence is a complex area of law and usually requires advice from a solicitor.
Find out more about undue influence on Shelter Legal.
Reducing the guarantee debt
A guarantor's liability cannot exceed that of a tenant. If a tenant can reduce their debt, the guarantor's liability is also reduced.
Tenancy deposit counterclaims
A tenant can counterclaim if the landlord has not correctly protected the deposit or if there have been ongoing unresolved disrepair issues. If the tenant's counterclaim is successful it can be set off against any debt.
A guarantor cannot bring a claim for a breach of tenancy deposit protection rules unless they have paid the deposit on a tenant’s behalf.[12] A successful claim can be used to offset rent arrears and reduce a guarantor’s liability.
Find out more about tenancy deposit protection on Shelter Legal.
Disrepair counterclaims
A guarantor cannot raise unresolved disrepair as a counterclaim to money claim as they didn’t occupy the property, and a landlord has no obligations towards a guarantor. To be able to counterclaim for the disrepair, a tenant would need to apply to be joined to a guarantor's money claim, and a tenant would need to counterclaim. This could then reduce the guarantor's liability.
Find out more about disrepair counterclaims on Shelter Legal.
Guarantee debts in insolvency
A guarantor could include a guarantee debt in their insolvency if they apply for bankruptcy or an individual voluntary arrangement (IVA). This could result in the guarantee liability being written off.
In bankruptcy and IVAs the full guarantee amount counts as a debt, even if a landlord has not yet demanded payment.
In debt relief orders the guarantee only qualifies as a debt if a landlord has already asked a guarantor to pay.
A guarantee creates a contingent liability. The debt only exists when a landlord makes a formal request for payment.
Read more about contingent debts in insolvency on Shelter Legal.
Last updated: 14 July 2025