Types of Tenancy Guarantee, Unlimited, Limited, Joint and Several
Unlimited guarantees cover all the tenant's obligations, the most favourable for landlords. Limited guarantees are capped by amount, time, or obligation type, read carefully before claiming. Joint and several liability (multiple guarantors) allows the landlord to pursue any one guarantor for the full amount. On-demand guarantees allow the landlord to demand payment without establishing default first (rare in residential). 'See-to-it' guarantees (most common) require demonstrated tenant default before the guarantor's obligation is triggered. In Scotland, the benefit of discussion rule may require pursuing the principal debtor first unless expressly excluded.
Triggering the Guarantee, Notice Requirements and Demand
Serve a clear written demand on the guarantor identifying the tenancy, the defaulting tenant, the amount, and the payment deadline. Follow the notice provisions in the guarantee agreement (method; address for service). Most residential guarantees do not specify formal notice procedures. For a 'see-to-it' guarantee, the landlord does not need a CCJ against the tenant first but must have documented evidence of default (rental account; dilapidations schedule; previous notices). Common mistakes: serving demand at the wrong address; claiming amounts exceeding the cap; claiming for obligation types not covered; allowing the limitation period to expire.
Limitation Periods, How Long Landlords Have to Claim
Guarantee by deed: 12-year limitation (Limitation Act 1980 s.8). Guarantee by simple contract: 6-year limitation (s.5) from the date the cause of action accrued. For rent arrears, a separate cause of action accrues for each instalment when it falls due unpaid. For dilapidations, the cause of action typically accrues at the end of the tenancy. Guarantor insolvency: submit a proof of debt promptly in the insolvency process; the claim is typically unsecured.
Enforcement Through the Courts, Small Claims, Fast Track, and AGA
Issue county court proceedings if the guarantor does not pay following a valid demand. Small claims track (up to £10,000): informal hearing; limited costs recovery. Fast track (£10,001 to £25,000): hearing within 30 weeks; standard costs. Multi-track (above £25,000): full costs recovery. CCJ enforcement: attachment of earnings; charging order; third-party debt order; taking control of goods. Commercial letting, AGA (LT(C)A 1995 s.16): the outgoing tenant guarantees the immediate assignee's performance. LT(C)A 1995 s.17 notice: the landlord must serve notice within 6 months of a fixed charge falling due, failure extinguishes the claim for that charge. This is a critical trap for commercial landlords.