Why Would Anyone Have A Leasehold?
Society & Culture0 min ago
how do i stop being a garantor
I signed to be a garantor for a friend when he needed one a few years ago..I have since found out that I am still his garantor even though he's resighned his letting agreement every six months .. I thought i'd only be his garantor for a few months until they could see he's a reliable tennent but now it seems i signed forever..Is there any way i can stop being his garantor ..If I wanted to get out of this agreement..
Answers
Best Answer
No best answer has yet been selected by sammmo. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
Depends whether the agreement originally signed contains a clause saying there's an automatic right to renew on the same terms, so it's seen as akin to a break clause in a lease..Then I can just see an argument that it's really a continuing contract but that's debatable.If not, the guarantee must end with the end of the original stated term. After all, the landlord might agree an increase in rent, or make other changes which would affect your decision to have guaranteed in the first place, when the first term ends.You cannot be at risk of guaranteeing a different debt .
I am sorry,but when you sign as a guarantor you enter into an Legal Contract with the Landlord/Agent.
This Contract lasts as long as the person you are guaranteeing has the tenancy for.
I would strongly advise anyone on AB NOT to become a guarantor without a long and hard consideration of the matter.
We have a neighbour who has rented a propert for 22 years,and her Father is STILL(in the eyes of the law) the guarantor.
It is not the 6 month contract (or whatever) that is covered by the Guarantee,it is the tenancy (and occupation of the property) that is covered by the Guarantor.
I think you are starting to realise (too late) just what IS involved in such a guarantee..
This Contract lasts as long as the person you are guaranteeing has the tenancy for.
I would strongly advise anyone on AB NOT to become a guarantor without a long and hard consideration of the matter.
We have a neighbour who has rented a propert for 22 years,and her Father is STILL(in the eyes of the law) the guarantor.
It is not the 6 month contract (or whatever) that is covered by the Guarantee,it is the tenancy (and occupation of the property) that is covered by the Guarantor.
I think you are starting to realise (too late) just what IS involved in such a guarantee..
PS:~
I understand your point about changing circumstances,but thiis does not affect your being a guarantor.
Even if the tenacy goes to 25 years,you have said you will make sure the Landlord/Agent gets their rent(whatever the circunstances of the tenant).
You are "tied" into the Tenacy,until the tenant leaves and occupies a new property.
I understand your point about changing circumstances,but thiis does not affect your being a guarantor.
Even if the tenacy goes to 25 years,you have said you will make sure the Landlord/Agent gets their rent(whatever the circunstances of the tenant).
You are "tied" into the Tenacy,until the tenant leaves and occupies a new property.
thanks mr veritas.. but surely if you wanted to stop being the garantor there should be a way of getting out of it.. after all it takes a few minutes to sign into it if you sent a letter stating you will no longer be the garantor surely you should no longer be held responsible for future debts incured..
Sadly,the conditions of being a Guarantor mean(as I said before) that you enter into a contract with the Landlord/Agent.
You may be willing to cease the contract,they may not!
The only way that guarantors get out of such contracts are,if the Tenant has paid the rent on time for a number of years,the Landlord/Agent may be willing to pass the obligation onto the Tenant
However,this may require the tenant to pay an "up front" deposit,IF this has not already been done,and of course the tenant may not be willing/able to do this,especially as they already have a guarantor who can (and is obliged to) do this.
Landords & Agents alike are not very willing to release a guarantor,because without such a person (like you) they probably would have no way of retrieving any monies owing to them.
You may be willing to cease the contract,they may not!
The only way that guarantors get out of such contracts are,if the Tenant has paid the rent on time for a number of years,the Landlord/Agent may be willing to pass the obligation onto the Tenant
However,this may require the tenant to pay an "up front" deposit,IF this has not already been done,and of course the tenant may not be willing/able to do this,especially as they already have a guarantor who can (and is obliged to) do this.
Landords & Agents alike are not very willing to release a guarantor,because without such a person (like you) they probably would have no way of retrieving any monies owing to them.
Just a bit more(and I will stop!LOL)
When you signed to be Guarantor you committed an act in Law.
This contract can only be broken by agreement on BOTH sides.
Courts can (and do) enforce such contracts,
They cannot be signed away by you just saying you don't want to be guarantor any more,or the contract wouldn't be worth the paper it was written on as everyone would do this.
I am sorry I am not more positive,but as I said before unless the Landlord/Agent releases you(not very likely I am afraid) you are stuck with it.
When you signed to be Guarantor you committed an act in Law.
This contract can only be broken by agreement on BOTH sides.
Courts can (and do) enforce such contracts,
They cannot be signed away by you just saying you don't want to be guarantor any more,or the contract wouldn't be worth the paper it was written on as everyone would do this.
I am sorry I am not more positive,but as I said before unless the Landlord/Agent releases you(not very likely I am afraid) you are stuck with it.
Now,I said I will stop,
BUT
I have found some (possible) good news.
This is from a Landlord Legsl website:~
How does a Guarantor stop being a Guarantor?
If the tenancy is for a fixed term (e.g 14th May 2007 – 14th May 2008), then the guarantee applies for the whole of the term and is not revocable during that term. If the Tenancy Agreement becomes periodic, then the guarantor will STILL be the guarantor. However, when the fixed term is over and becomes periodic, the guarantor can opt out of the deal by writing to the landlord to terminate the agreement. This is perfectly legal and has been tested in court. The guarantor should give “reasonable” written notice that he/she no longer wishes to be bound by the terms of the deed of guarantee (beyond the fixed term).
A fixed term contract is when two dates are specific in the Assured Shorthold Tenancy Agreement, in which the tenant has rights to live in the property. The agreement becomes periodic when the agreement expires, but tenant and landlord have agreed to continue the tenancy without signing new contracts. In that case, the previous contract rolls over and becomes periodic.
What this basically says is,if your friend's Tenancy is an Assured Shorthold Tenancy(Fixed Term) which expires and then is agreed again as another (usually 6 moth) ASH(Fixed Term) they you ARE still a guarantor and cannot get out of it.
However,
If your friends Tenancy is an ASH (Fixed Term) and then does not get renewed as an ASH but rolls on from month to moth in what is known as a "Periodic" Tenancy then you CAN ask the Landlord/Agent to release you.
Of course now you have to try and find out WHICH Tenancy your friend has?
Good Luck.
BUT
I have found some (possible) good news.
This is from a Landlord Legsl website:~
How does a Guarantor stop being a Guarantor?
If the tenancy is for a fixed term (e.g 14th May 2007 – 14th May 2008), then the guarantee applies for the whole of the term and is not revocable during that term. If the Tenancy Agreement becomes periodic, then the guarantor will STILL be the guarantor. However, when the fixed term is over and becomes periodic, the guarantor can opt out of the deal by writing to the landlord to terminate the agreement. This is perfectly legal and has been tested in court. The guarantor should give “reasonable” written notice that he/she no longer wishes to be bound by the terms of the deed of guarantee (beyond the fixed term).
A fixed term contract is when two dates are specific in the Assured Shorthold Tenancy Agreement, in which the tenant has rights to live in the property. The agreement becomes periodic when the agreement expires, but tenant and landlord have agreed to continue the tenancy without signing new contracts. In that case, the previous contract rolls over and becomes periodic.
What this basically says is,if your friend's Tenancy is an Assured Shorthold Tenancy(Fixed Term) which expires and then is agreed again as another (usually 6 moth) ASH(Fixed Term) they you ARE still a guarantor and cannot get out of it.
However,
If your friends Tenancy is an ASH (Fixed Term) and then does not get renewed as an ASH but rolls on from month to moth in what is known as a "Periodic" Tenancy then you CAN ask the Landlord/Agent to release you.
Of course now you have to try and find out WHICH Tenancy your friend has?
Good Luck.
Tenant almost certainly has an AST (Assured Shorthold Tenancy). And, despite the last post, most guarantees contain a phrase that commits the guarantor for the duration of the tenancy - that is the agreement that was signed AND any subsequent agreements for the same tenant at the same property.
If you can get your friend to move out - you cease to be guarantor - simples
If you can get your friend to move out - you cease to be guarantor - simples
What you have signed (your contract) and what is legally enforceable are two seperate things entirely.
As an example, were you told to take independent legal advice before signing the contract? That //may// make the agreement unenforceable.
I work in the finance industry and pretty much all guarantees now have to have a signed statement along the lines of "I have taken independent legal advice and would like to enter into the agreement". This has taken place as guarantors have been tested in the courts and lost.
As an example, were you told to take independent legal advice before signing the contract? That //may// make the agreement unenforceable.
I work in the finance industry and pretty much all guarantees now have to have a signed statement along the lines of "I have taken independent legal advice and would like to enter into the agreement". This has taken place as guarantors have been tested in the courts and lost.
There are a few 'loopholes' you could try. Did you have sight of the AST (the tenancy agreement) before signing the guarantor agreement? If you didn't, or didn't have a reasonable length of time to read it (I mean several days here, enough time to get legal advice), then the guarantor agreement is probably legally unenforceable as you would not be aware of what you were guaranteeing. Ideally, from the LL/Agents point of view, you would have signed a copy of the AST along with the tenant and LL so that you were aware of all the Terms.
You say that the tenant re-signed a new agreement every six months? Did you have sight of each of those agreements? I would doubt if you did. If you didn't, again the guarantee probably wouldn't be enforceable as the Terms of the AST could have varied considerably (not just the rent) and you wouldn't be aware of them.
By the way, a guarantor is liable for not just the rent but all other costs that the tenant may be liable for too e.g. damage at the end of the tenancy, breakages etc during the tenancy, LL's legal costs to evict if it came to that.
Getting someone to stand as a guarantor for a tenant is great for a LL as it gives them a fall back position if the tenant defaults but I personally would never do it if asked.
I'd suggest if you want more detailed advice then try the Landlordzone Forums http://www.landlordzo.../forumdisplay.php?f=3
You say that the tenant re-signed a new agreement every six months? Did you have sight of each of those agreements? I would doubt if you did. If you didn't, again the guarantee probably wouldn't be enforceable as the Terms of the AST could have varied considerably (not just the rent) and you wouldn't be aware of them.
By the way, a guarantor is liable for not just the rent but all other costs that the tenant may be liable for too e.g. damage at the end of the tenancy, breakages etc during the tenancy, LL's legal costs to evict if it came to that.
Getting someone to stand as a guarantor for a tenant is great for a LL as it gives them a fall back position if the tenant defaults but I personally would never do it if asked.
I'd suggest if you want more detailed advice then try the Landlordzone Forums http://www.landlordzo.../forumdisplay.php?f=3
Related Questions
Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.