Can I Dispute Liability as a Guarantor Due to Contract Changes?

Question from Jeffrey, Can I Dispute Liability as a Guarantor Due to Contract Changes?

Answer from AI:

If you signed a guarantor agreement for a tenancy in the UK, and the terms of the tenancy have significantly changed since then, you may have grounds to dispute your liability. Here’s a general explanation of the relevant legal principles and steps you might consider.

Understanding Your Role as a Guarantor

When you sign a guarantor agreement, you agree to cover the tenant’s obligations if they fail to do so. This typically includes unpaid rent and any damages to the property. However, your liability as a guarantor is generally tied to the specific terms of the original tenancy agreement.

Significant Changes to the Tenancy Agreement

If the tenancy agreement has been significantly altered, such as an increase in rent or other material changes, without your consent, you may not be liable for the new terms. Here are some key points to consider:

• Material Changes: Significant changes, like a substantial rent increase, can potentially release a guarantor from their obligations if they did not agree to these changes.
• New Agreement: If a new tenancy agreement was signed, it might be considered a separate contract. Your original guarantor agreement may not automatically apply to this new contract.
• Notification: You should have been informed and given the opportunity to consent to any changes that affect your liability.

Legal Precedents and Regulations

In the UK, case law and regulations provide some guidance on this issue:

1. Case Law: In the case of Holme v Brunskill (1878), it was established that a guarantor is discharged from their obligations if the terms of the contract they guaranteed are significantly altered without their consent.
2. Consumer Credit Act 1974: This act provides some protections for guarantors, particularly in consumer credit agreements, which can sometimes be analogous to tenancy agreements.

Steps to Take

If you believe you have grounds to dispute your liability, consider the following steps:

1. Review the Documents: Carefully review the original guarantor agreement and the new tenancy agreement.
2. Seek Legal Advice: Consult with a legal professional who can provide personalized advice based on the specifics of your case.
3. Communicate with the Landlord: Inform the landlord in writing that you dispute your liability due to the changes in the tenancy agreement.
4. Gather Evidence: Collect any correspondence or documents that show you were not informed or did not consent to the changes.

When to Consult a Legal Professional

Given the complexities involved, it is crucial to seek legal advice. A solicitor can help you understand your rights and obligations and represent you if the matter goes to court. You can find a solicitor through resources like the Law Society’s Find a Solicitor service.

Additional Resources

For more information, you can refer to:

• Citizens Advice on Guarantors
• UK Government Guide on Private Renting

Remember, this information is intended to provide a general understanding of the issue. For personalized advice, always consult with a legal professional.