Acting as guarantor

[doyliewoo]

hello - I hope you can give me some advice.

I have been acting as guarantor for my ex partner now for 3 years (yes crazy I know) but things have worked well, he pays the housing benfit directly to me and we have had no problems.

He has now served notice and is moving in a months time, I have agreed to act as guarantor for him again.

My question is this - I only want to act as guarantor for the term of the fixed tennacy period. At the end of the 12 month period I would like to either serve notice as guarantor or renew for another fixed period depending on how things have gone.

This particular estate agent have said that I would be liable as guarantor for as long as the tennant is in the residence even once it has changed to a periodic tennacy and that I would be unable to give notice as guarantor at any point.

I thought that an open ended agreement was illegal? I only want to linit my liabilty and protect my interests, the likelihood of me not renewing as quarantor is very small as things have worked so well in the past. I am concerned that the landlord could increase the rent making it too expensive for the tennant to pay his rent and that would fall to me.

I also thought that if the landlord increased the rent this would make the original agreement null and void?

I have attached the guarantor docment they have forwarded.

Any help would be great

[stuuartdavis84]

Re: Acting as guarantor

hello,
1 :you need to write on the bottom of the guarantor document that you are only acting as a guarantor for the 1st 12 months of the contract and sign..

2: after you've done this you need to then on month 10 of the agreement you need to serve a 2 month notice that you are withdrawing as the guarantor for that property at the 12 month point. legally this will stand up in court and you will not be liable after the 12 months is up.
The estate agent will then decide weather to continue with your friend as a tenant without a guarantor or asking him for a new guarantor in which they will then have to provide a new fixed term tenancy..
hope this helps

[Crazy council]

Re: Acting as guarantor

they probebly wont any additions like that

maybe negotiate the total liability with them. limit it to

1. Rent lawfully due, under the agreement that the agents inform you immediately of any arrears.
2. Damage due under the TA , under the terms that you would be informed immediately and given the opportunity of independent assessment.
3. reasonable costs of any required action - under the condition that your informed prior to each stage

and they might be more willing to limit it to 2 years.. but you can not force them into anything...

open ended guarantor agreements can be a bit of a nightmare to deal with, always approach with caution. Always lock down your liabilities

[stuuartdavis84]

Re: Acting as guarantor

your right they possibly might reject any added additions to the contact but that would be my first port of call.
regarding giving them reasonably notice of being the guarantor that is code of all practice for guarantors whom wish to terminate there agreement as a guarantor and if presented in the right manner at least 2 months before the contact ends a court of law will 100% take that as your withdrawal and you will NOT be liable for further responsibility after the 12 months.