Thanks for your reply.
Obivously the wording of the guarantee is not great news for your - there's very little wiggle room for interpretation there, the extension does come within the scope of the wording and the basic position is that as guarantor you are liable for the arrears.
There is not duty on the part of the landlord to inform you of an extension implied in to the guarantee by statute so it woud not be unenforceable for that reason either I'm afriad.
The teXXXXX XXXXXability will be joint and several so that they can pursue you for the whole of the rent arrears.
I would check that the guarantee itself has been properly executed (ie. signed and dated), if it has not you may have a defence available to you.
If the tenancy was an assured shorthold tenancy, which it will be if the rent was less than £25k pa and no notice was received prior to entry stating specifically that it was no to be an AST, then the deposit must have been lodged in an tenancy deposit scheme if it was not then the tenant could apply for the return of the whole of the deposit and a fine of three times the deposit amount payable by the landlord to the tenat. You should ask the tenant to check about this because you could perhaps leverage this against the rent arrears.
If you can't leverage the above then you may be looking at having to offer the landlord a settlement amount to avoid the hassle of litigating. They may accept this. If they do make sure you get it in writing that they are accepting the sum in consideration for not issuing a claim against you at Court to recover the monies.
You may be able to claim anything you have to pay from the tenants, the issue here will be whether they have assets against which you could claim or an income against which you could ask for an attachment of earnings order so that a set sum is dedcuted from their salary.
If you took legal advice on the guarantee and the extent of liability was not explained to you then you may be able to claim against your solicitor/adviser.
I'm very sorry that it could not be better news.
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Edited by Thomas on 8/2/2010 at 3:21 PM EST