Guarantor Query

[Tonybmth]

Hi,

I agreed to be a guarantor in November 2017 for a family member. I signed a deed of guarantee that have the following terms:

1. The Guarantor agrees to act for the Tenant(s) should he/they fail, for any reason, to meet the financial commitments arising from the Tenancy Agreement entered into in respect of the Property.
2. This Deed of Guarantee refers to the current tenancy being undertaken and any extension or renewal of that tenancy. All references to the Landlord herein shall be deemed to include the Landlord's Agent or any person authorised to act on the Landlord's behalf.
3. The Guarantor undertakes to pay to the Landlord from the date of this Deed of Guarantee from time to time the Rent within 10 days of receipt of a written demand from the Landlord or his Agent addressed to the Guarantor if the Tenant following demand has not paid the amount being demanded when it was due under the Tenancy Agreement.
4. If the tenancy is for a fixed term, then this guarantee applies for the whole of the term and is not revocable during that term.
5. If the tenancy is periodic or has become periodic by agreement or the operation of law, then this guarantee will continue. In this case, the guarantee may be terminated by written notice by the Guarantor and the guarantee shall end on the earliest date when possession is or can be legally obtained.
6. The Guarantor will not be released from the liabilities arising under the Tenancy Agreement and this Deed of Guarantee by any variation or amendment to the terms of the Tenancy provided that such variations or amendments are insubstantial and not prejudicial to the Guarantor.
7. The Guarantor agrees to be liable in respect of these liabilities arising under the Tenancy Agreement but the total liability of the Guarantor shall not exceed the sum of £4,350

I have now tried to give notice under section 5 and the response from the landlord is the following:

"I have considered your email and looked at section 5 in the witnessed deed of guarantee dated the 30th November 2017. I would like to point out that her tenancy has become a periodic tenancy and that the deed of guarantee remains in effect.

I think you may have misunderstood the release of liabilities by written notice section, this only comes into effect and can be done at the earliest date when possession can be legally obtained. As I understand it she is quite happy there and until she vacates the property this deed of guarantee will remain in effect regardless of any request from yourselves"

Am I reading the deed incorrectly when I believe I can terminate the guarantee with written notice?

Any advice on this?

[des8]

You have a response on your original thread