Guarantor Aggreement

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    Guarantor Aggreement

    Hi all We have prospective tenants that have a guarator and am wondering which is the best method for a aggreement with the guarantor. Should we have a proper agreement like the tenancy agreement or is the guarantor letter on NLA suffice. Thanks.

    #2
    Consensus seems to be that anything less than a deed of guarantee is not worth much. I believe you can find plenty online so you can see the format, but make sure the details are suitable to what you are looking to do.

    I assume you have/or will credit check the guarantor first.
    All views posted reflect my personal opinion only and do not constitute professional advice which I am not qualified or knowledgeable enough to provide.

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      #3
      Your guarantee agreement should also make reference to the tenancy agreement, and the guarantor needs to have actually read and understood the covenants to which they are guaranteeing.
      [I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]

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        #4
        You also need to reference the guarantor like you would the tenant AND you must see the guarantor actually sign the Deed, and likewise the witness just to safeguard yourself.
        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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          #5
          Originally posted by Paul_f View Post
          ...you must see the guarantor actually sign the Deed, and likewise the witness just to safeguard yourself.
          There are two possible snags with that.

          The first is that the guarantor may not live locally.

          The second is that if the landlord or agent is standing over the guarantor when he signs that may not look good in court. It is important to treat guarantees as a special case because the guarantor is taking on obligations without any benefit. The landlord or agent must not only act correctly, but do all he can to remove the possibility of argument that he has not acted correctly. The counsel of perfection is to require the guarantee to be witnessed by a lawyer, but that of course is an expense.

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            #6
            Originally posted by Poohster View Post
            Hi all We have prospective tenants that have a guarator and am wondering which is the best method for a aggreement with the guarantor.
            Use this

            http://www.tenancyservices.co.uk/pro...d-of-guarantee

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