Trouble as a guarantor

[onthehook]

Hi all,

I'm looking for some advice on how to approach a problem that I have as guarantor.

I somewhat foolishly signed up as a guarantor for a friend and they are now in arrears on their rent. It was a twelve month tenancy and we are now into month thirteen with them refusing to move.

I have just received a claim against me from the Civil National Business Centre, I accept my role as guarantor and the need for me to step up and pay what is owed so far. What I don't want is to make it easier for my ex-friend to stay any longer than necessary at the property rent free with myself on the hook for it. Equally I don't want a CCJ issued against myself when I am willing to pay the outstanding amount. I received the letter today, it was issued on the 8th April.

Does anyone on this forum have experience in this area and in a position to provide me with some advice?

Many thanks

[atticus]

You need to ask someone to look at the guarantee for you, and also the tenancy agreement.

Make sure you file the acknowledgement of service. You will then need to file a defence.

Alternatively, you can pay up now.

You will have a claim against your friend - for whatever that may be worth - for any sums you have to pay as his guarantor.

[islandgirl]

Apparently guarantor agreements are often not valid. Did you see the AST before you signed the agreement? I suggest reading previous cases on the forum Landlordzone and ask there for advice. You will certainly find some specialists there.

[atticus]

That is why I advise looking at the guarantee and the tenancy agreement. Letting agents often get these things wrong. My students in the University law clinic advised on a great example a few weeks ago.

There are specialists here!

[islandgirl]

There are specialists here!

Of course there are - sorry I did not wish to imply there were none here. I just know it has been a regular topic in "the other place"

[onthehook]

Thank you very much for your responses

To guide whether I pay up straight away or not, if I dispute via the ASOS, does that mean that my ex-friend gets approached first to pay up? Will a CCJ go against them first, against me or against both of us. As much as I would like to make life harder for my ex-friend it's not at the cost of having a CCJ against myself especially when I am able / willing to pay.

[atticus]

Unless there is something really unusual in the wording of the guarantee, the creditor can take legal action against the guarantor without first taking action against the principal debtor. But consider getting advice on the guarantee first - isn't it worth checking that it is enforceable?

[islandgirl]

I agree. If not, you can write to the creditor and tell them!

[onthehook]

Thank you for your advice, to be honest I'm not looking to get out of my obligations. I signed up as a guarantor knowing the risks, but I just wasn't expecting my friend to do what they did. My only real interest is to limit what this will cost me and minimise the benefit to my ex-friend whilst not having anything serious like a CCJ awarded against me

[islandgirl]

If you knew the guarantee is not valid it would not matter if the LL takes a while to evict (well it will only matter to the LL). Eviction could take many months - has a s21 or s8 been served on the tenant?

[onthehook]

The S21 has been served

[islandgirl]

They are often invalid meaning the process needs to begin again. You could easily be looking at 8 or more months to evict. Any damage will also be claimed over and above the deposit