How to swap guarantors?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    How to swap guarantors?

    Hi,

    I have a tenant who hasn't paid last two months rent. I contacted the guarantor and he came in and paid..

    However he is the ex-husband and he wants to stop being a guarantor and be replaced by one of the tenants family. He has stated he will be guarantor until this "swap" has taken place. He feels that because he is her ex-husband she wants him to be liable and doesnt care if her rent isnt paid.. However if its a family member she will have more respect.

    This is understandable and we are willing to change guarantors if they are acceptable after referencing. Is this legal? What needs to be done if this happens?Does a new AST have to be drawn up?

    Please can anyone advise me?
    Thanks

    #2
    It is certainly legal, however I am not sure that it is the best way of dealing with the situation. I suspect you would need a new AST, not entirely sure. However, now the tenant is resident, I think it will be no easy task to persuade her to get a family member to become a new guarantor, especially as I am guessing(maybe unfairly) that she has no particular reason to be "fair" to the ex husband in this way. A fair solution on your part, if maybe somewhat extreme(however I would say not, the tenant has already missed 2 months of rent anyway), is to simply evict the tenant. Therefore guarantor agreement is removed for the ex husband. Of course, you could cancel the eviction if the tenant provides a new guarantor, but do you really want to tie her in for another 6 months? Out of interest how long has she been your tenant?
    Any posts by myself are my opinion ONLY. They should never be taken as correct or factual without confirmation from a legal professional. All information is given without prejudice or liability.

    Comment


      #3
      It is up to you if you accept to change the guarantor - you are under no obligation to do that. If you are happy to have your Tenant remain in your property, then I suggest referencing the new guarantor, and should the references prove adequate, then you will need to draw up a new Tenancy Agreement with the new guarantor's details.

      A word of caution though, in my experience when a guarantor wants "out", it usually means that they do not have faith in the Tenant's ability to keep to the terms and conditions of the Tenancy, ie. the main one being to pay the rent. Make sure that the new guarantor is a property owner and either in full time employment with adequate income to meet his/hers own commitments, as well as your rent, or can provide adequate evidence of funds for the purpose of covering your rent.


      Do not begrudge a decent Agent their fees - Landlord's come to the Agent in the first place, and it is often the Landlord's who try to cheat the agents out of fees, not the other way round. Landlord's don't be greedy.

      Comment


        #4
        Of course nobody has yet mentioned that the new guarantor would have to see the tenancy agreement first, understand it's meaning and then agree to take repsonsibility. Any half-decent solitior would advise against it! Also is the tenancy agreement enforceable on the tenant in its entirely, or does it have potential unfair terms, contain legal jargon etc.etc.

        I would retain the current guarantor as changing him could create its own problems, especially if you are not very experienced in these matters. If not ask the legal guys to do it for you.
        The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

        Comment


          #5
          Thanks everyone for your advice.

          This tenant is a nightmare from the start. Shes been there since March with a 12month contract.
          She missed two months rent so I got the guarantor to pay up which he did. He is fine with the situation but his just annoyed that shes taking £1500 maintenance a month and not paying the rent with it therefore he has to pay up with the rent.I can understand his point of view about wanting to change and if there was an easy way of getting her parents to become guarantor (and they are suitable) then I would happily change.
          I dont want to sign a new agreement with her though, I want her out in March and Ive got the paperwork ready to send to her!
          I cant evict her any other way because the guarantor pays up therefore she isnt in arrears by 2months to go to court on a section 8. I dont want the hassle of using a section 8 on another grounds as it seems unreliable.
          I think I will just have to keep the guarantor even though in my eyes it seems unfair but this is business I suppose and he did sign up for it!

          Comment


            #6
            I can't see the necessity for drawing up a new AST.
            Any guarantor agreement I have used is on a separate sheet of paper and duly witnessed as a deed.
            The wording of the deed doesn't let the guarantor off the hook even if the tenant vacates, if she still owes the landlord money. I assume therefore that if a family member did sign as guarantor, that the poor old ex would have something in writing to say he no longer is responsible for her debts!

            Comment

            Latest Activity

            Collapse

            • Reply to at what stage does tenant pay deposit and advance rent
              by v2kisad
              KTC Thank you for replying. Apologies I should have mentioned,the agent says the money is in their account and will be transferred in 24 hrs once I have handed over the keys.I wasn't sure about the usual practice, does agent pay landlord before tenants move in or after....
              28-09-2020, 15:33 PM
            • at what stage does tenant pay deposit and advance rent
              by v2kisad
              Hello All,

              Hope everyone is safe and well. I'm a new landlord and am letting out my flat through an estate agent. Both tenant and I have signed the contract. The contract was signed 10 days ago and tenants were supposed to move in 2-3 days but then agent told me the tenant will move in...
              28-09-2020, 14:33 PM
            • Reply to Communal lighting issue
              by AndrewDod
              A 5 watt Led Bulb (more than enough to light a hall) left on 24/7 365 days a year will use 43.8kwh/year at less than £10.

              Suggest you spin one off your flat, share the £10 with the other flat, and tell them to get lost. They can remove the meter if they like - it's not yours. And shift...
              28-09-2020, 15:09 PM
            • Communal lighting issue
              by Shalanne
              Hi all,

              I own and rent out the ground floor flat of a building that has one other flat upstairs.

              It has come to light, that the original owner of the upstairs flat had installed a third "landlord's" meter to provide light for the single light in the hallway downstairs....
              28-09-2020, 12:50 PM
            • Reply to at what stage does tenant pay deposit and advance rent
              by KTC
              Err, rent clear before keys and possession. At the very least, money cleared on the agent's account if you trust agent not to go bankrupt and fold in the mean time. If the agent want you to give possession before money, ask the agent whether they are legally guaranteeing the rent payment (i.e. they'll...
              28-09-2020, 15:02 PM
            • Reply to Communal lighting issue
              by jpucng62
              Utility companies are not allowed to cut people off in case it causes undue hardship.

              When a tenant moves into a property that become liable for the usage on a deemed contract even if they don’t open an account. I would suggest that the occupants are liable for the usage.

              ...
              28-09-2020, 14:14 PM
            • Reply to Communal lighting issue
              by jpkeates
              I don't really understand how that works.
              Are you and the "other landlord" landlord leaseholders and, together, the freeholder?
              Why is the "other landlord" not the owner of upstairs and you the owner of downstairs?

              Who is responsible for the bill would be...
              28-09-2020, 14:05 PM
            • Reply to Communal lighting issue
              by Shalanne
              Some are suggesting that because myself and the other owner are now the landlord's, we inherit that meter even though when we bought our properties we were never made aware of it or, in my case, consulted before it was installed. I don't understand why they didn't just stop supplying power after 3 months...
              28-09-2020, 13:44 PM
            • Reply to Communal lighting issue
              by flyingfreehold
              you aren't liable. For the sake of one bulb just spur off your flat with a maintained bulkhead, more cost effective than a landlords account. A manintained common parts light is one with a rechargeable battery which will come on in a power failure. If however you let your flat to a council or housing...
              28-09-2020, 13:44 PM
            • Reply to Communal lighting issue
              by Shalanne
              Well Scottish Power is saying someone has to pay and they suggesting that's the current landlords which is me and the other flat owner. They absolutely won't make any changes like removing it, switching supply off or anything because our names weren't on the original account before it was closed. It...
              28-09-2020, 13:43 PM
            Working...
            X