Guarantor agreement: what makes it enforceable, with a free template

A guarantor agreement, more properly a deed of guarantee, is the document under which a third party takes on legal liability for a tenant's obligations if the tenant fails to meet them. It is a separate instrument from the tenancy agreement, and it is the only thing standing between a landlord and an unrecoverable loss when a guaranteed tenant stops paying. It is also, in most portfolios, the document most likely to fail when it is finally needed, because the defects that void a guarantee are invisible until the day it is enforced. This guide sets out what the deed must contain to be enforceable as at July 2026, gives you a template to work from, and explains the four mistakes that most often render one worthless.

Why the wording matters more since May 2026

The Renters' Rights Act 2025 has made guarantees both more useful and more fragile. More useful, because rent in advance is now capped at one month, so the guarantee has replaced the cash cushion as the way to support an applicant whose income is thin, as our entry on the guarantor explains. More fragile, for a reason almost nobody has flagged.

Under a rule dating to Holme v Brunskill (1878), varying a contract without the guarantor's consent can discharge the guarantee altogether, and a rent increase is such a variation. Before 1 May 2026 this rarely bit, because a landlord whose tenant refused to obtain a fresh guarantee could fall back on Section 21. That route is gone. Tenancies are now periodic and indefinite, rent rises will recur across the life of the guarantee, and there is no longer a lever to force a re-signature. A deed drafted for the old regime, which assumed a fixed term and a Section 21 backstop, can quietly lapse at the first rent increase and leave a landlord holding a piece of paper.

The Act also changed liability directly. Where a guarantee was entered into on or after 1 May 2026, section 19 releases the guarantor from rent falling due after the tenant's death, as set out in section 19 on legislation.gov.uk. Liability for arrears and damage arising before the death is unaffected. A deed that purports to bind a guarantor beyond that point is, to that extent, of no effect.

What a deed of guarantee must contain

It must be executed as a deed, not a contract. A guarantor receives nothing in return for their promise, so there is no consideration, and without consideration a simple contract is unenforceable. A deed solves this, but only if it complies with the formalities: the document must make clear on its face that it is intended to be a deed, it must be signed by the guarantor, and the signature must be witnessed by an independent person who is physically present and who signs in turn. Electronic signature and remote witnessing remain risky ground for deeds, so take a wet signature with the witness in the room.

It must specify every liability it covers. A guarantee covers only what it expressly names. A deed that mentions rent arrears but omits damage does not cover damage, however obviously the parties intended it to. Name rent, damage beyond fair wear and tear, and any other sums recoverable under the tenancy.

It must survive variation. This is the clause that matters most now, and it is the clause the free templates in circulation do not have. The deed should state expressly that the guarantor's liability continues if the rent changes, if the other tenants change, or if the tenancy continues as a periodic tenancy, and that the guarantor consents in advance to such variation on being notified in writing. Without it, Holme v Brunskill is waiting.

Every named guarantor must sign it. If a deed names two guarantors and only one signs, it binds neither of them, not even the one who signed. That is the effect of Harvey v Dunbar Assets [2013] EWCA Civ 952, and it is the single most expensive administrative error a landlord can make on this document.

The guarantor must be given the tenancy agreement and time to read it. A guarantor can defend a claim on the ground of undue influence, and a landlord accepting a guarantee is fixed with notice that a guarantor may have been pressured by the tenant. That defence is far stronger where the guarantor was rushed, given no copy of the tenancy, and had no chance to take advice. Handing over the tenancy agreement and leaving them alone with it for a few days costs nothing and closes the argument off.

Deed of guarantee template

This is a starting point, not a finished instrument. Have it reviewed by a solicitor before you rely on it, particularly if the tenancy is a joint one or the rent is substantial.

DEED OF GUARANTEE

This deed is made on [date]

Between: [Landlord's full name] of [landlord's address] ("the Landlord") And: [Guarantor's full name] of [guarantor's address] ("the Guarantor")

Relating to: the assured tenancy of [full property address] ("the Property") granted to [tenant's full name] ("the Tenant") under a tenancy agreement dated [date] ("the Tenancy Agreement"), a copy of which the Guarantor confirms they have received and read.

1. Guarantee. The Guarantor guarantees to the Landlord that the Tenant will pay the rent and perform all of the Tenant's obligations under the Tenancy Agreement.

2. Indemnity. If the Tenant fails to pay any rent or to perform any obligation under the Tenancy Agreement, the Guarantor will on written demand pay the Landlord the sums due and indemnify the Landlord against all losses arising from that failure, including rent arrears, damage to the Property beyond fair wear and tear, and any other sums recoverable under the Tenancy Agreement.

3. Continuation and variation. This guarantee continues for as long as the Tenant occupies the Property, including while the tenancy continues as an assured periodic tenancy. The Guarantor's liability is not released or reduced by any variation of the Tenancy Agreement, including a change in the rent or a change in the other tenants, provided the Guarantor is notified in writing of the variation. The Guarantor consents in advance to such variations.

4. Death of the Tenant. In accordance with section 19 of the Renters' Rights Act 2025, this guarantee does not extend to rent falling due for any period beginning with the death of the Tenant. The Guarantor remains liable for rent, damage and other sums that fell due before that date.

5. Joint and several liability. [Where there is more than one guarantor:] The Guarantors are jointly and severally liable under this deed, and the Landlord may enforce it against any one of them for the whole amount.

6. Forbearance. The Landlord may grant time or indulgence to the Tenant without releasing the Guarantor.

7. Costs. The Guarantor will pay the Landlord's reasonable costs of enforcing this deed.

8. Independent advice. The Guarantor confirms that they have been given a copy of the Tenancy Agreement, have had the opportunity to take independent legal advice, and enter into this deed freely.

Executed as a deed by the Guarantor:

Signature: ____________________ Date: __________

In the presence of a witness:

Witness signature: ____________________ Witness full name: ____________________ Witness address: ____________________ Witness occupation: ____________________

The witness must be independent of the Guarantor and the Landlord, must be physically present when the Guarantor signs, and must sign in the Guarantor's presence.

Where two guarantors are named, both must sign, each before their own witness. If one does not sign, the deed binds neither.

The four mistakes that void a guarantee

The failures are consistent, and each one is avoidable in about five minutes at the point of signing.

Failing to execute it as a deed, which leaves a promise with no consideration behind it and therefore no contract. Naming two guarantors and obtaining one signature, which binds nobody. Omitting the variation clause, so that the first rent increase discharges the guarantee without anyone noticing. And guaranteeing only rent when the loss, when it comes, is damage.

Across the self-managing landlords August works with, the guarantee is the document most often filed and never re-read, which is precisely why the defects survive to the moment they matter. Keep the signed deed with the tenancy agreement and the referencing file in one place; August's document management holds them against the property so the guarantee can be produced, intact and dated, on the day it is needed.

Reference the guarantor before you draft anything

A deed is only as good as the person signing it. Reference the guarantor to the same standard as the tenant, with identity, a credit check and income verification, and expect gross annual income of around three times the annual rent, set above the tenant's own threshold because the guarantor is carrying their own outgoings as well as a contingent liability. Take a UK-based guarantor, since a guarantee against a person with no UK assets is expensive and often impossible to enforce. The full process sits in our guide to tenant referencing, and the wider regime in our Renters' Rights Act hub.

You cannot charge for any of this. Under the Tenant Fees Act 2019 the cost of referencing a guarantor and preparing the deed sits with the landlord, and charging it to the tenant or the guarantor is a prohibited payment carrying a penalty of up to £5,000 for a first breach.

Frequently asked questions

Does a guarantor agreement have to be a deed?

In practice, yes. A guarantor receives no benefit in exchange for the promise, so a simple contract lacks consideration and is likely to be unenforceable. Executing it as a deed, signed and independently witnessed, removes that problem. A deed also carries a twelve year limitation period rather than six.

Can a guarantor withdraw once they have signed?

Not unilaterally. A guarantee is binding for as long as it says it is, and a guarantor who changes their mind cannot simply revoke it. A landlord may agree to release them, usually where the tenant's circumstances have improved enough that the guarantee is no longer needed, and that release should be recorded in writing and signed by everyone.

Is a guarantor liable if the tenant dies?

Not for rent falling due after the death, where the guarantee was entered into on or after 1 May 2026. Section 19 of the Renters' Rights Act 2025 releases them. They remain liable for arrears and damage that arose before that date, and the tenant's estate remains responsible for rent until the tenancy is properly ended.

Does a rent increase cancel the guarantee?

It can, and that is the trap. Varying the tenancy without the guarantor's consent may discharge the guarantee entirely, and a rent increase is a variation. A deed containing an express advance consent to variation, as clause 3 above does, is what prevents it. If you want the rent record and the signed deed in the same place, you can start with August for free.

Final thoughts

A deed of guarantee is a short document that either works or does not, and you find out which on the worst possible day. Execute it properly, get every named guarantor to sign in front of an independent witness, name every liability you want covered, and include the clause that keeps it alive through a rent increase. Then give the guarantor the tenancy agreement and the time to read it, because a guarantee obtained fairly is a guarantee that holds.

Disclaimer: This article and the template it contains are a guide and not intended to be relied upon as legal advice, or as a substitute for it. A deed of guarantee creates significant legal liability and its enforceability depends on how it is drafted, executed and witnessed. August does not accept any liability for any errors, omissions or misstatements contained in this article, or for any loss arising from reliance on the template. Have the document reviewed by a suitably qualified solicitor before you use it.