Guarantor Agreement

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  • Guarantor Agreement

    I am trying to find a good guarantor agreement template.

    I have found one but it mentions Law of Property Act 1925 section 146. That seems a bit old, is it likely to be out of date or is that law still relevant?

    Cheers

  • #2
    Don't know if there is an 'official' template but it should state 'signed as a Deed of Guarantee' and ideally specify duration. eg min fixed term, for term of AST operation or full term of T occupancy of property.
    G should be provided with copy of proposed AST and 2 copies of G to sign, 1 for retention, 1 to return before T can be granted.
    Note G can request his removal as G at a later time.

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    • #3
      Originally posted by Silverdall View Post
      I am trying to find a good guarantor agreement template.

      I have found one but it mentions Law of Property Act 1925 section 146. That seems a bit old, is it likely to be out of date or is that law still relevant?

      Cheers
      Oh dear! You need to read up on the LPA 1925 S.196 as it affects all ASTs with regard to the service of Notices.

      There are some Acts of Parliament that go back to the 13th Century that are still relevant today concerning recovery of outstanding debt!
      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.

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      • #4
        Originally posted by mariner View Post
        Don't know if there is an 'official' template but it should state 'signed as a Deed of Guarantee' and ideally specify duration. eg min fixed term, for term of AST operation or full term of T occupancy of property.
        G should be provided with copy of proposed AST and 2 copies of G to sign, 1 for retention, 1 to return before T can be granted.
        Note G can request his removal as G at a later time.
        I have found a a good looking Deed of Guarantee but it makes no mention of the landlord signing as well.

        Anyone got a view on whether a deed needs to be signed by the landlord as well?

        Also it talks about "any continuation, extension, renewal or re-grant" of the tenancy agreement. Does this phrase cover a periodic tenancy or should I amend the wording to make that clear?

        Comment


        • #5
          Originally posted by Silverdall View Post
          I have found a a good looking Deed of Guarantee but it makes no mention of the landlord signing as well.

          Anyone got a view on whether a deed needs to be signed by the landlord as well? No because it would be like signing your own death warrant!

          Also it talks about "any continuation, extension, renewal or re-grant" of the tenancy agreement. Does this phrase cover a periodic tenancy or should I amend the wording to make that clear? Yes it would cover a periodic tenancy , and possibly a renewal but don't count on it. After the fixed period of any tenancy has expired a guarantor can serve "reasonable" notice on you to withdraw from such a commitment.
          There's plenty of other posts exactly on this subject so scroll to the bottom of the page for starters, and then use the search facility if you need more info.
          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


          • #6
            It is unlikely that an off-the-shelf Deed of Guarantee will be fit for purpose. They are tricky things and have to be exactly right for the particular tenants and the tenancy, or they may be worthless.

            Get one custom-drafted by a solicitor or legal drafter. It could save you a lot more than it costs you. (The reverse is true of the kind of Guarantor Deeds you are asking about).
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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