HELP! Guarantor confusion.!

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    HELP! Guarantor confusion.!

    Hi! In 2015 i've decided to help a friend and his wife to get a flat from an agency offering myself as a guarantor. After his 12 months tenancy finished he had some trouble getting a new one there as the agency didn't find his job to reliable but after some convincing they agreed. I wasn't aware at the time and thought that after the 12 months​ tenancy my DoG was done and i was free. Yesterday i received a voicemail saying that i am still a guarantor and i owe them £1394. Can't reach my 'friend' and don't understand why after such a long time i am being held responsible. I read the DoG that i signed back in 2015 and saw this: "3. This agreement will remain enforceable against the Guarantor(s) throughout the Tenant’s occupancy of the
    Property and will not be restricted to the fixed term specified within the Tenancy Agreement" . That this means i am still responsible or it doesn't? Cause i thought that as soon as the 12 months tenancy agreement expired and they sign a new tenancy agreement i have nothing to do with it especially they haven't contacted me . Many thanks!

    #2
    It seems you should have read the contract you signed at the time you signed it instead of leaving it until now.

    I think it's important to establish whether this relates to:
    1) The original AST and they have taken a long time to contact you
    2) For a periodic tenancy, following the end of the AST you signed
    3) For a new AST which you didn't sign.

    Your position will be dependent on which (if any) of the above is applicable.

    Comment


      #3
      Decline to pay or simply don't reply. See if they take you to court - if they do, contact Shelter 0808 800 4444
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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        #4
        Guarantor agreements are notoriously difficult to enforce.
        I would take some legal advice (after contacting the friend who seems to have somewhat taken advantage of you).
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          As above. Did the rent rise since 2015? Was your signature witnessed? Is the witness accessible and known to them?


          Basically under most circumstances guarantor agreements are of no value whatever outside of the original AST (no matter what they say), even less so for a brand new AST as opposed to a periodic tenancy, and if shoddily done are of no value at all

          I would write and ask what steps they have taken to evict your friend, when his first non-payment of rent occurred, and that basically you have no obligations to them and will happily defend your position in court.

          In the meantime let everybody know that they should not act as guarantor for your friend.

          Comment


            #6
            On face value it's enforceable as you agreed to guarantor their whole occupancy.

            As others have said however, guarantor agreements are difficult to enforce and you need a solicitor to help.

            You will be in a better position if a new AST has been signed rather than it still being periodic.

            Comment


              #7
              Originally posted by Klausgubernu View Post
              Hi! In 2015 i've decided to help a friend and his wife to get a flat from an agency offering myself as a guarantor. After his 12 months tenancy finished he had some trouble getting a new one there as the agency didn't find his job to reliable but after some convincing they agreed.!
              Who agreed?
              You signed a Deed of G, so evading your Liability may not be easy, but only a Judge can decide.

              Comment


                #8
                Originally posted by Wright76 View Post
                As others have said however, guarantor agreements are difficult to enforce and you need a solicitor to help.
                I wouldn't get a solicitor until they actually sue you (more than just a letter before claim -- wait until the actual court claim arrives).

                Anyhow, answer some of my questions as to the exact mechanics of signing this guarantee.

                Guarantor is only really responsible for tenants liability under terms of AST they saw and agreed to. If terms are changed, did you approve the change?

                I would also in any case write formally to say that not only are you not liable for the existing rent shortfall since they made the decision to renew the tenancy and to grant another fixed term which limited their ability to evict, but that you are also not responsible from now on going forward.

                Next time don't sign agreements without reading them and without understanding the potential implications.

                On the one hand I feel sorry for the landlord as they took on a shonky tenant and had you as the backup. On the other hand I have no sympathy because they went ahead and signed another fixed term.

                Even if the guarantee was perfect, the landlord has to mitigate his losses. he cannot (for example) sign a 5 year agreement with the tenant, or fail to take any steps to evict as soon as possible while accepting rent from the guarantor for the next 20 years.

                Comment


                  #9
                  It is my understanding that the agreement to act as guarantor has to be signed as a deed to be enforceable, as there is no benefit to the guarantor.

                  Was it signed as a deed?

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