T's Deed of Guarantee has expired

chris horne

Member
Staff member
#1
I've have a tenant with a 12 month AST tenancy. As part of this agreement I required them to obtain a deed of guarantee for the 12 month period. The tenancy has now expired and has become periodic. Have you any suggestions on how to continue the deed of guarantee. Is it possible to have an open ended (no end date) deed of guarantee or does the deed need to operate for a set period?
 

Jeffrey Shaw

Member
Staff member
#2
I've have a tenant with a 12 month AST tenancy. As part of this agreement I required them to obtain a deed of guarantee for the 12 month period. The tenancy has now expired and has become periodic. Have you any suggestions on how to continue the deed of guarantee. Is it possible to have an open ended (no end date) deed of guarantee or does the deed need to operate for a set period?
Much depends on the exact wording in the existing DoG that you wish to continue. It might have stated that it runs:
a. only during 'the term' [as defined]; or
b. during 'the tenancy' [probably defined as meaning the term plus any statutory continuation].

So which of these most closely resembles the existing DoG?
 

chris horne

Member
Staff member
#3
Much depends on the exact wording in the existing DoG that you wish to continue. It might have stated that it runs:
a. only during 'the term' [as defined]; or
b. during 'the tenancy' [probably defined as meaning the term plus any statutory continuation].

So which of these most closely resembles the existing DoG?
The wording in the Deed of Guarantee is :

I understand that this Guarantee shall not be revoked for so long as the Tenant remains a tenant of
the Property nor shall it be revoked or discharged by my death or bankruptcy or the death or
bankruptcy of any of us or the death of bankruptcy of the Tenant (or any other person who is a party
to the Agreement).
Would this classify as the term?
 

Jeffrey Shaw

Member
Staff member
#4
No. First, was the Guarantee a separate document, executed as a Deed? Does it say so, explicitly?
The wording that you cite deals only with 'revocation'- but for how long was the Guarantee granted?

1. By "the term", I meant the Letting Agreement's definition of its own duration.
2. So was it (for example) "for a term of six months beginning on XXX"?
3. Does it define "the term" as including a statutory periodic (continuation) tenancy?
 

chris horne

Member
Staff member
#5
The Deed was I believe executed as a deed. The wording of the deed is as follows:

Deed of Guarantee
Dear test man ("the Landlord")
I have read and returned to you a signed copy of the Tenancy Agreement for the property below. I
agree that this separate Deed of Guarantee of 2 (two) A4 pages constitutes an agreement between
Landlord and Guarantor. I confirm I am over 18, a UK house-owner and have a regular income,
which is sufficient to meet my potential liabilities as a Guarantor.
In consideration of your granting a Tenancy of 1, building, Nottingham, ng2 ("the Property") to sam
white ("the Tenant"), who will be party to a tenancy, I hereby agree to indemnify you against any
default in payment of rent, *mesne profits, damages for use and occupation, damages for disrepair,
losses, cleaning of the premises to the original standard, other reasonable damages or costs you
may incur as a result of the said tenancy, or any further occupation of the property after the expiry of
the tenancy whether under a statutory continuation thereof or not.
I agree to pay within 14 days of a written request from you if the Tenant, following a request, has not
paid the amount being requested when it was due under the Tenancy Agreement.
I understand the rent is payable in advance by 6 equal instalments of £500.00 Five Hundred Pounds
due by the 0th of each month. I understand the Tenancy starts on the 3th January 2006 and
terminates on the 1st January 2007.
I understand the Inventory and Schedule of Condition provided at the commencement of the
Tenancy to the Tenant will be used as evidence of any loss, damage or additional cleaning at the
end of the Tenancy to support any claim relating to the Inventory and Schedule of Condition.
I understand the rights and remedies of the Landlord against the Guarantor under this Deed of
Guarantee do not affect the rights and remedies which the Landlord might have against the Tenant
PROVIDED THAT if the Landlord recovers any sums from the Guarantor under this Deed of
Guarantee and subsequently recovers from the Tenant any sum in respect of the same liability then
the sum recovered from the Tenant shall (up to the amount paid by the Guarantor) be paid to the
Guarantor within one month.
I understand I cannot revoke this Deed of Guarantee and it shall not be discharged by my death or
bankruptcy or by the death or bankruptcy of the Tenant.
I understand that this Guarantee shall not be revoked for so long as the Tenant remains a tenant of
the Property nor shall it be revoked or discharged by my death or bankruptcy or the death or
bankruptcy of any of us or the death of bankruptcy of the Tenant (or any other person who is a party
to the Agreement).
I confirm that I haven't had any County Court Judgments, Court Decrees, Bankruptcy, or
Administration orders made against me.
In the event of my defaulting in respect of my covenants as Guarantor I agree to reimburse you the
Landlord for any reasonable costs incurred to recover any monies due under this Deed of
Guarantee.
I understand this does potentially entail a substantial liability should the Tenant default and that this
Deed of Guarantee creates a binding legal contract.
*Mesne profits.
These are monies that may be demanded from an occupier who remains in the property after a
tenancy has ended. They compensate the landlord for loss of rental income but are not rent, so do
not create a fresh tenancy.
Page 2 of 2
Declaration
I hereby confirm that the information provided by me on the Guarantor Application Form is to the
best of my knowledge true. I have read the copy of Tenancy Agreement supplied and I am fully
aware of the commitments regarding this prospective tenancy.
I agree that all information provided may be subjected to verification; all information provided and
the results of any verification process may be held in computer and/or paper records by the
Landlord and a Credit Reference Agency and may be released to any other person or organization
entitled by law to receive it. I also agree that in the event of my defaulting in respect of my
covenants as Guarantor, that any such default may be recorded with a Credit Referencing Agency
and IDS Ltd (Insurance Database Services Ltd), who may supply the information to other credit
companies or insurers in the quest for the responsible granting of tenancies, insurance and credit.
I agree that in the event of my defaulting in respect of my covenants as Guarantor, that my
particulars on the Guarantor Application Form may be disclosed to one or more insurer and/or their
agents, tracing companies and/or debt collection agencies in order to recover any monies due or to
trace my whereabouts. I will immediately inform the Landlord, in writing, if there are any changes to
the information in this Deed.
This document is a DEED and has been executed as a DEED. This Deed of Guarantee is governed
by English Law and is subject to the exclusive jurisdiction of the courts of England and Wales.
PLEASE COMPLETE IN CAPITAL LETTERS (With the exception of the signatures)
Guarantor (signature): ................................................................................................
Full Name: ................................................................................................
Address of Guarantor: ................................................................................................
................................................................................................
In the presence of:
Witness (signature): ................................................................................................
Full Name: ................................................................................................
Address of Witness: ................................................................................................
................................................................................................
Occupation of Witness: ................................................................................................
The witness declares that they are over the age of eighteen and not related to the Guarantor.
Dated:
 

Jeffrey Shaw

Member
Staff member
#6
No. First, was the Guarantee a separate document, executed as a Deed? Does it say so, explicitly?
OK- so the Guarantee does constitute a Deed, even though not drawn very well!

I then asked:
but for how long was the Guarantee granted?

1. By "the term", I meant the Letting Agreement's definition of its own duration.
2. So was it (for example) "for a term of six months beginning on XXX"?
3. Does it define "the term" as includinga statutory periodic (continuation) tenancy?
The Deed says ...as a result of the said tenancy, or any further occupation of the property after the expiry of
the tenancy whether under a statutory continuation thereof or not.

So it lasts for as long as this T occupies, even if the tenancy's fixed term becomes an SPT. No new Deed is needed.