Joint Guarantor: Is the Assignee Still a Debtor?

Practical application:

The case law confirms that the father remains jointly liable for rent arrears incurred by the assignee, because his guarantee was not extended in the assignment deed. The landlord should first demand payment from the assignee, then from the father. To avoid future disputes, the landlord should require a new guarantee or an express extension of the existing guarantee at the time of assignment.

Practical application:

Under this ruling, the father is still liable because his guarantee was not limited to the original tenant. The father should check the assignment deed: if it did not mention his guarantee, he may argue it was not extended. To protect himself, he should request a release from the landlord when his son assigns the lease, or require that any assignment terminates his guarantee.

Practical application:

The case law holds that the guarantor remains liable unless the assignment deed explicitly releases him or limits his guarantee to the original tenant. The tenant should negotiate a release clause in the assignment deed. If the landlord refuses, the guarantor may seek a court order to terminate his obligation, but this is uncertain. The best practice is to have the assignee provide a new guarantor.