Does a new agreement mean the guarantor has to sign again?

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  • Does a new agreement mean the guarantor has to sign again?

    Can someone please advise me. I have a tenant with a guarantor. The tenant now would like another 6 month ast agreement instead of just continuing on a rollover agreement. Do I have to get her guarantor to sign again or does the first gurantor agreement still apply? Thank you

  • #2
    There are two schools of thought on this.

    Safest way is for the G to sign again, as a deed, after reading the new agreement and after being credit checked again.

    Circumstances can change in 6 months.
    I offer no guarantee that anything I say is correct. wysiwyg

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    • #3
      Snorkerz recently tried to sue a guarantor for the first term for losses in the second. The judge rejected it. I guess that shows which way the wind blows on this subject.

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      • #4
        Originally posted by norma1 View Post
        Do I have to get her guarantor to sign again or does the first gurantor agreement still apply?
        If you do decide to go down the road of asking for a guarantor again, you need to consider what you'll do if she or the guarantor refuses. Will you then immediately start reposession proceedings? Just shrug your shoulders and keep her on regardless - or will you be concerned that you've lost face and can't back down: in which case it may be better to not even raise the issue?

        Just something to bear in mind, that's all.

        Depending on the circumstances over which the tenant needed the guarantor, maybe you might consider that she's proved herself a reasonably reliable tenant now and it's no longer a big issue?

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        • #5
          First, it depends what the guarantee says. If it does not say anything which purports to impose continuing liability then only the original tenancy is guaranteed.

          Secondly, if the guarantee does purport to impose continuing liability you need to look at the wording to see if it in fact does so. Guarantees are interpreted strictly and in favour of guarantors. There is also a question as to whether it is possible to guarantee something which does not exist at the time the guarantee is signed.

          Thirdly, even if your wording looks good, you may have to persuade the judge that the guarantor fully understood the implications of what he was doing.

          The way the courts deal with guarantees is not something new and was established long before the advent of BTL as we know it today.

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          • #6
            I'm about to take a G to court. Will keep you all informed of the outcome.

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            • #7
              PS the G signed the TA and a G's agreement, and a G's application but NOT a deed. Might need to live and learn on this one.

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              • #8
                Originally posted by Berlingogirl View Post
                PS the G signed the TA and a G's agreement, and a G's application but NOT a deed. Might need to live and learn on this one.
                I'm pretty sure you will find your application rejected by m'learned friends.
                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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