Guarantor stuck. Advice please

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

    Guarantor stuck. Advice please

    Hi all,
    Not too sure if anyone can help really but the situation is as follows.

    My stepfather signed as guarantor for my brother on a 2 bed flat. This was despite being told by the family not to, and knowing how much trouble my brother is. The rent was to be paid by HB, and after a few problems, such as my brother never submitting the application, it eventually was.

    Now, my brother abandoned the property in June or July, despite signing a 2 year agreement. The HB stopped in August apparently as the council could not contact him.

    The first we heard of non payment was last week when my stepfather got a letter asking for rent from then until now.

    In between then and now they have been consistently told that my brother has left the property, he has in fact moved in with some girl or other. They won't however start a repossession or cancel the tenancy without him doing it.

    No one actually knows where my brother is, and he won't return calls. The only reason anyone knows anything at all is via Facebook.

    My stepfather did not receive a copy of the tenancy agreement and did not even see it apparently. He also did not receive copies of anything that he did sign. The poor sap works as a cleaner in asda and doesn't have a penny to his name other than a rundown old house.

    Does he have any rights whatsoever in this, as currently the LL is saying the charge will amount to £7k.

    Thanks for your time.

    #2
    Firstly, the amounts the landlord is seeking seem to be correct - he has no obligation to end the tenancy before the end of the contract.

    However, if the landlord were to sue your stepfather then the fact that he did not see the tenancy agreement would stand in his favour quite heavily.

    He should write to the landlord denying liability and asking the landlord to provide copies of the supposed guarantee agreement. That in itself could give other opportunities to defend.

    For example, if SFs signature was not witnessed then the document can not be a deed and there is a very strong argument to be made that a guarantee like this has to be executed as a deed.

    The fact that the landlord accepted a relatively poor person as a guarantor suggests he may not know the ins & outs of guarantees, so may have made mistakes in the wording etc.

    So, once you have a copy of the guarantee, comeback & we will see if it is possible to tear any holes in it

    Comment


      #3
      Slightly out of left field but possibly applicable depending on the circumstances - presumed undue influence could be considered, especially if the landlord hasn't performed due diligence on the guarantor and provided notices advising the same to seek legal advice before signing. Summary of a recent case here: http://www.burges-salmon.com/Practic..._decisions.pdf

      Snorkerz - is 5 months a reasonable length of time for the landlord to leave the property unoccupied - so as not to minimise losses? Therefore could the £7000 demand be lowered a bit - or does it fully depend on the terms of the agreement?

      Lastly where is this flat? £7000 for 5 months seems a good return (£1400 per week). But I notice that HB is capped at £290 pw for two bedrooms, £250 pw for 1 bdrm even in the most expensive areas. Was he expected to top up but didn't? I don't know much about HB so just asking for my own education.
      caveat emptor
      If it sounds like I know what I am talking about........I don't.

      Comment


        #4
        IMO it's not advisable to let a property empty for 5 months because of insurance issues, squatters, etc.
        That said, this is a fixed term tenancy and iirc rent is a debt so landlord has no obligation to minimise his 'loss'.

        Comment


          #5
          Thanks for the correction, yes no duty to minimise 'loss' from rent arrears, duty to minimise only applies to claims for damages. Rent is just performance of the contract not a loss as such - an explanation here http://www.wellerslawgroup.com/site/...gate_loss.html
          caveat emptor
          If it sounds like I know what I am talking about........I don't.

          Comment


            #6
            I agree, mitigation isn't an issue, there is nothing to mitigate until the rent becomes due and then its a debt, you do not need to mitigate debt.

            Reichman & Anor v Beveridge & Anor [2006] EWCA Civ 1659 applies http://www.bailii.org/ew/cases/EWCA/Civ/2006/1659.html

            Comment


              #7
              Thanks guys, once I can get my hands on the guarantee I'll post it up here.

              Just to clarify, the £7k, I'm assuming, is for the entirety of the tenancy, so 2years worth.

              The place was a pit and really shouldn't have been let to begin with so far as I'm aware. Damp and mould in the bedroom had the place stinking.

              Comment


                #8
                We don't know what the £7k is for, but in court he would only be able to claim for rent legally due - and it doesn't fall due until each months rent day.

                The condition of the property has no relevace to this particular issue - if it was a genuine problem, that was the tenants issue to deal with.

                Comment


                  #9
                  Just an update as we're trying to get our hands on everything that was signed. The SF has said he signed the same paperwork as my brother and nothing else. So it's looking more likely that he signed the tenancy agreement as opposed to a separate deed.

                  Pointed out that in that case he should have read the bloody thing. He still however didn't get copies of anything that was signed, hence the LL dragging their heels with giving him it.

                  No idea really where the whole deed/agreement thing differs unfortunately.

                  Comment


                    #10
                    If he has signed the tenancy agreement as a guarantor, then he may still have the 'deed' get-out.
                    If he has signed it as a tenant (even if he didn't live there) he may be in trouble.

                    Comment

                    Latest Activity

                    Collapse

                    • Reply to notifying utility companies of tenant change
                      by DoricPixie
                      You don't need the password of the vacating tenant. Their account with the utility company has nothing to do with you as you are setting up a new account not taking over the tenant's account. The section on the websites is usually called something like "Moving Home" and although you're not...
                      19-05-2022, 03:26 AM
                    • notifying utility companies of tenant change
                      by flyingfreehold
                      Does anyone have a shortcut? Right now we seem to have to hang on interminably long on the phone to provide details of leaver readings, put the account back in landlords name and then to provide new tenants' details when the place is re-let. Anyone know of a shortcut? We used to send out letters but...
                      18-05-2022, 21:10 PM
                    • Reply to notifying utility companies of tenant change
                      by flyingfreehold
                      but how can you give the information online if you dont have the password of the tenant vacating?
                      19-05-2022, 02:14 AM
                    • Reply to notifying utility companies of tenant change
                      by DoricPixie
                      You’re not really putting the account back into the landlord’s name, you’re opening a new account.

                      I thought the majority of utility suppliers let you set up a new account online as they don’t really want you phoning them either. Closing the account is all done online too and the...
                      19-05-2022, 00:35 AM
                    • Reply to Windows and front door smashed
                      by Yorkie2020
                      Thanks artfull, we have the CRN. we may need help from the place you suggested as I've never had to deal with an insurance company before and it's already looking like its going to be North of £1600 claim and they will try to wriggle out of it.

                      Had a very unpleasant chat with the tenant...
                      19-05-2022, 00:04 AM
                    • Windows and front door smashed
                      by Yorkie2020
                      Tenant messaged this morning to say her living room window and front door were smashed in last night plus some other damage. She called the police who arranged for someone to secure the broken window and door.
                      In all the years of being a landlord, I've never had to make an insurance claim before,...
                      17-05-2022, 16:41 PM
                    • Advice for tenant asked for big rent rise
                      by Renterthedragon
                      I’m a tenant facing a sharp rent increase and in need of advice.

                      I have a good landlord who agreed to a rent reduction last year because of ongoing maintenance issues and lower market values. However, I can only communicate with them through an agency.

                      Approaching the end...
                      18-05-2022, 22:10 PM
                    • Reply to notifying utility companies of tenant change
                      by ash72
                      I've not found any short-cuts, as each company has their own quirks on dealing with this. It usually takes a couple of calls to a customer services person to provide the information, due to GDPR they wont say anything about the exiting T.

                      Some Councils, seem to have an online form you can...
                      18-05-2022, 21:21 PM
                    • Reply to Single parent renting
                      by Hooper
                      I am not sure that it will make her feel any better but I suspect that the children are more of an issue than being a single mum. Friends of mine have been rejected from every family size house they have applied to. They are high earning professionals with decent references and ... two young kids 2...
                      18-05-2022, 20:28 PM
                    • Single parent renting
                      by Dct
                      A friend of mine who is a single parent with three children is trying to find a house to rent. She has three children and recieves UC mainly to help with childcare costs, but despite viewing several houses and showing interest and showing she is more than able to pay rent, she has been turned down and...
                      18-05-2022, 16:32 PM
                    Working...
                    X