Tenancy Guarantees

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  • Moderator2
    replied
    This thread has become a spam magnet, so locking it.

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  • David Lawrenson
    replied
    I think one set of losers from the Tenant Fees Act could be folk who need a guarantor.

    I have always been of the view that you should still check out tenants through reference checks as well as you do any guarantor. (This may include affordability checks too, depending on circs).

    So, if I have to go to the work of also checking out a guarantor, (with all the legal and other implications highlighted in these posts), but the Tenant fees Act says I cannot charge for the extra work involved, I'm going to be less likely to let to someone who tells me they need a guarantor.

    The Law of Unintended Consequences at work here!


    David Lawrenson

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  • Lawcruncher
    replied
    Little Swimmer,

    Sorry but I cannot answer that as I was never a litigator. I suggest you post your question here: http://swarblaw.co.uk/viewforum.php?...afccafda42bbfd

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  • Little Swimmer
    replied
    Originally posted by Lawcruncher View Post

    I like your solicitor!
    Hi Lawcruncher,

    We have settled out of court and all payments have been paid and legal fees settled. I have received a letter from the court saying that the judge has refused discontinuation. Why would that be? What are the next steps? The letter of discontinuation was done on their solicitors letterhead and not on form N279. Could this be a factor?

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  • KTC
    replied
    I think it's missing an ", or" in there so it becomes:

    ... whether fixed term or periodic, or the Tenant is declared bankrupt and the Tenant's Trustee in Bankruptcy elects to disclaim ...

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  • cotsrhys
    replied
    Very puzzled about the wording in a recently received Tenancy Guarantor form I need to sign. It suggests that by defaulting, the tenant is made bankrupt !
    I appreciate the liability to the guarantor, but defaulting does not IMHO represent a bankruptcy, and have queried this wording with the agency. Just posting here as the agency is well known, and surprised at this form of words.

    2. "If the Tenant defaults during the initial Term or an extension, renewal or continuation of the Agreement whether fixed term or periodic the Tenant is declared bankrupt and the Tenant's Trustee in Bankruptcy elects to disclaim the Agreement then on written demand the Guarantor will pay cover and compensate the Landlord for all losses, claims, liabilities, costs legal fees and expenses arising out of or due to that default or disclaimer or incurred by the Landlord due to the default or disclaimer."

    The last bit also looks like repeated text.

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  • Little Swimmer
    replied
    Originally posted by Little Swimmer View Post

    My solicitor is of the same opinion

    1) There never was a guarantee
    2) If there was it only covered the initial 6 months
    3) It is time barred
    Also added to this are implied terms, unfair terms and failing to mitigate loss
    The total cost to go to trial is more than £17,000 per side and £2,000 court costs. The total costs are £10,000 more than the original debt.

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  • jpkeates
    replied
    Time barred!
    I like that idea.

    Great to know, thanks for letting us know.

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  • Lawcruncher
    replied
    Originally posted by Little Swimmer View Post

    My solicitor is of the same opinion

    1) There never was a guarantee
    2) If there was it only covered the initial 6 months
    3) It is time barred
    I like your solicitor!

    Leave a comment:


  • Little Swimmer
    replied
    Originally posted by Lawcruncher View Post
    The drafting is very amateurish. The agreement does not actually say as such that a tenancy is agreed, though that obviously has to be implied.

    Anyway, the key point is surely that the agreement is for six months and that the guarantor's liability (if there ever was any) does not extent to cover the statutory periodic tenancy.
    My solicitor is of the same opinion

    1) There never was a guarantee
    2) If there was it only covered the initial 6 months
    3) It is time barred

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  • jpkeates
    replied
    It depends on what the guarantor form says.

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  • Lawcruncher
    replied
    If the guarantee is drafted to refer only to the first tenancy then that is all it covers. Some guarantees purport to include future tenancies, but their vaildity is doubtful. If you let us know the wording of the guarantee we can offer an opinion.

    If the second tenancy has already been granted you cannot insist on a guarantee if the old guarantee has indeed expired.

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  • Bongo51
    replied
    Hi,
    I’m new to all this, but have registered for some advice on guarantors.
    I have a tenant who signed a 12 month tenancy and their guarantor signed the form to be his guarantor,but the initial tenancy has expired now and the tenant has now signed a new tenancy agreement but what I want to know is...does the guarantor automatically roll over or do they need to resign a new form? The tenancy agreement hasn’t changed in any way.

    Thsnks

    Leave a comment:


  • Lawcruncher
    replied
    I think you need to say to the solicitor: The agreement is for six months. I am right that I can't be responsible for any rent payable after the initial term expired, aren't I?

    Leave a comment:


  • JK0
    replied
    Originally posted by Little Swimmer View Post
    My main worry is that if I lose the case he registers an order against my property. Is this possible when he has allowed the debt to spiral to what it is now?
    Only if you don't pay the judgement and costs.

    Leave a comment:

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