Tenancy Guarantor - can I escape?

[dan1953]

Hi,

I became a tenancy guarantor for my daughter and her husband due to their very poor credit rating.

My daughter subsequently split from her husband, and the letting agents required a new tenancy in her sole name - for which I was once again the guarantor.

Something (we're not entirely sure 'what') happened to my daughter, who became extremely abusive to my wife and myself. The relationship with our daughter soured to the point where we are no longer on speaking terms.

We have learned that her husband has now returned to live with her.

I am hopeful that this will consitute a change in the existing tenancy terms & conditions sufficient to make a new joint tenancy necessary - at which point I will relinquish my role as guarantor.

The letting agents are adamant that no new tenancy has been created - yet, as mentioned, they insisted on a new tenancy when my daughter became the sole occupant of the property.

Clearly, they will not create a new tenancy, and thus lose me a guarantor, unless they are forced to do so.

Can I insist that the existing tenancy agreement is now void?

Many thanks for any assistance with this.

[Kati]

Re: Tenancy Guarantor - can I escape?

As far as I’m aware, there are a handful of ways in which a guarantor can actually stop being a guarantor, which are as follows:

• The landlord allows the guarantor to surrender their legal obligations as a guarantor. In this case, the guarantor should get this in writing from the landlord.
• If the Deed of guarantee contains a termination provision (allowing the guarantor to withdraw on say two months’ notice)- the provision can allow the termination during the fixed term.
• If the tenancy has become periodic and the guarantor has agreed to the extension then the guarantee becomes continuous. Otherwise, the guarantee will come to an end after the fixed-term.
• If any term of the tenancy changes (e.g. rent increase) the guarantee will automatically come to an end.
• Death of either party.
• If a new tenancy is entered into, the guarantee will automatically come to an end, unless a term in the guarantee states an automatic continuation.

In most cases, the conditions above depend on the wording of the Deed of guarantee, so it’s important to read the terms with due diligence, and seek legal advice if uncertain.

From what you say above, a new tenancy agreement should have been produced when your daughters circumstances changed, so theoretically you should have been asked about becoming the guarantor on the new tenancy. If this has not happened, it might be worth seeking legal advice :tinysmile_grin_t:

[wales01man]

Re: Tenancy Guarantor - can I escape?

I cannot see how you can insist the agreement is not with you you just guarantee payment
Why would the Agent give a new agreement without a guarantor makes no business sense at all.

But I may be wrong

[Crazy council]

Re: Tenancy Guarantor - can I escape?

[MENTION=30456]wales01man[/MENTION] is spot on here.

Garuntee forms go with the tenancy, i have dealt with many of these over the years. If you post it up, removing the personal details i will have a look through but they are generaly very tight documents without many escapes.

I do sympathise with your situation, its hard when thigs like this go on around your kids.

Is there any arrears, or any other details that may be usfull.

There is not a lot you can do to get out of it, but there are a few things you can do to make it very hard for the agent to enforce the garuntee.

We have learned that her husband has now returned to live with her.

I am hopeful that this will consitute a change in the existing tenancy terms & conditions sufficient to make a new joint tenancy necessary - at which point I will relinquish my role as guarantor.

Not necaseraly correct.....

I would suggest a recorded delivery letter to the agents, Stating that you understand that the husband is now living there full time, and your garuntee is only on your daughters tenancy. Ask for a current arrears/bond status, ask them to do a property inspection to asses any damage up to this date.

Its very unlikley that you will be able to just withdraw from the contract, but you can defend yourself against claims if the agent/landlord does not act properly.

Ignoring a new FULL time resident maybe one. But its very hard to prove occupation yourself. Sending a carfully worded letter to the Agent may make the agent act more promptly, but there is no get out clause. So insist on an account of the rent and a properly inspection so you have a fixed point to argue from in the future.