PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

How do I stop being a guarantor?

I recently agreed to act as guarantor for my son when he completed an assured short-term tenancy agreement, now I'm beginning to regret this as I believe this type of tenancy has no time limit to it and depends on whether the LL or my son terminate it.
I thought I had signed up to being a guarantor for 12 months but I realise now that I have nothing in writing to confirm this and I'm afraid this could go on for years.
At the moment he is also having difficulty claiming any benefits having just come out of prison and I'm afraid I will be stuck paying his rent and being a guarantor for ever!!
I doubt if he will terminate the tenancy.
Can anyone please provide any crumb of comfort or advice?
«134

Comments

  • CLAPTON
    CLAPTON Posts: 41,865
    Combo Breaker First Post
    Forumite
    no there is no way of terminating being a guarantor except in accordance with whatever you signed.

    check what you signed up to.
  • You are and will be a guarantor for the whole of the rent until the tenancy is ended. The only crumb of hope I can offer you is that in order to be enforceable it would have had to be signed as a Deed. Many, many agents and landlords get this wrong.
  • Hi Bitter and Twisted!
    Thanks for your reply. I have a Guarantor Agreement, basically a sheet of A4, with the terms and conditions, dated and signed by myself and a witness. How does this differ to a Deed? Thanks again.
  • Piltdownman
    Piltdownman Posts: 7 Forumite
    edited 5 November 2011 at 4:25PM
    Actually I learned today from the Letting Agency that it is an Assured Short-Hold agreement!
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    and so you agreed to back up your son, and presumably this was the basis on which the LL agreed to take him on as a benefit tenant, and now you want to back out - leaving the landlord to pick up the financial pieces ? ?

    shame on you - and him just out of prison too....... He needs help not abandonment......

    and yes... i am a landlord.... and yes ... i do take benefit tenants..... but i also want a guarantor....

    the housing benefits systems is complex enough for tenants without guarantors who muck everyone about like this......

    i suppose you realise that if you back out the LL may take your son to court and he will end up with a CCJ - which is what landlords want to avoid - which is why they ask for guarantors ?
  • I agreed to 12 months as a guarantor (or at least I was given the impression of the agreement being for only 12 months), I don't have a problem with that but I need to know I can end this agreement after 12 months. I don't want to see the LL out of pocket in anyway, I'm quite happy to buy my way out of this!
  • G_M
    G_M Posts: 51,977
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    What on earth did you believe you were doing when you signed up?

    The landlord was understandably hesitant about handing over his multi-hundred thousand pound property to someone who has a criminal record and little income beyond benefits.

    You provided the landlord with confidence by saying in effect "Don't worry - if in the future my criminal and penniless son either damages your property or stops paying rent, I will make good the loss. I am willing to do this because I trust my son (since I know him) to an extent which understandably you do not".

    Having thus reassured the landlord, and persuaded him to hand over his multi-hundred-thousand pound property, you now wish to pull the rug from under him.

    Sorry - not that easy.

    It sounds like the guarantor agreement, however, may not have been created as a Deed, so there is a chance a judge might not enforce it. However the fact that it was witnessed (a key requirement) may well be enough to convince a judge that it is valid.

    The only way to find out would be for your son to stop paying rent, the landlord take you to court as guarantor, and the judge to make a decision.
  • BigAunty
    BigAunty Posts: 8,310
    Combo Breaker First Post
    Forumite
    edited 5 November 2011 at 4:38PM
    How old is your son and does he rent a room in a shared property or have a studio/1 bed place to himself?

    Do you know how much the Local Housing Allowance is that he receives versus the rent that is due?

    You can identify his LHA entitlements on the Direct Gov website or the local council website.

    There are significant changes to the housing benefit system in place so it would be good for you to understand if he's in a property whose rent is greater than his LHA which means he could always struggle to top up the difference between his rent and LHA from his other benefit or employment income, for example.

    My understanding is that a tenant can apply for an interim housing benefit payment after two weeks from the local council if they have submitted their application in full but the council has failed to process the claim in that period. This doesn't happen automatically, the tenant has to request it. The Shelter website will have more info on this, and the best way to avoid/manage rent arrears with landlords.
  • G_M
    G_M Posts: 51,977
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    I agreed to 12 months as a guarantor (or at least I was given the impression of the agreement being for only 12 months), I don't have a problem with that but I need to know I can end this agreement after 12 months. I don't want to see the LL out of pocket in anyway, I'm quite happy to buy my way out of this!

    Most such guarantor agreements state that they last for the period of the tenancy which includes the initial fixed term, and subsequent fixed term, and any ongoing Periodic tenancy arising from the fixed term.

    However you'd need to quote the wording on the document you signed before we can advise!
  • BigAunty
    BigAunty Posts: 8,310
    Combo Breaker First Post
    Forumite
    ..I don't want to see the LL out of pocket in anyway, I'm quite happy to buy my way out of this!

    But, at its heart, this is what being a guarantor is about - it's about minimising the risk of them being hit by a tenant's arrears, placing the risk on the guarantor.

    I can't see a landlord voluntary releasing you from this, and if your son won't find a tenancy somewhere else, then your options are to see if the contract is valid, or hope that the landlord issues notice to your son.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards