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who is the guarantor
ncooper1974
Posts: 291 Forumite
Hi
I have been asked by a member of the family for some advice regarding a guarantor situation.
The family member works for a family business as a ltd company. They have a lease whereby they (the company) are tenants, and the company director is the guarantor.
The address for the tenants (the company) is the actual address of the building they are leasing.
The address of the guarantor is in the name of the company director, at the same address.
The guarantor (i.e. company director) is no longer a directory of the company. in fact, he has nothing more to do with the company.
I'm not sure if he signed as guarantor as a personal liability, or in his role as director of the company.
If they family can no longer afford to pay the lease, and default on the rent, is the guarantor still accountable, given that he no longer works for the company?
I have been asked by a member of the family for some advice regarding a guarantor situation.
The family member works for a family business as a ltd company. They have a lease whereby they (the company) are tenants, and the company director is the guarantor.
The address for the tenants (the company) is the actual address of the building they are leasing.
The address of the guarantor is in the name of the company director, at the same address.
The guarantor (i.e. company director) is no longer a directory of the company. in fact, he has nothing more to do with the company.
I'm not sure if he signed as guarantor as a personal liability, or in his role as director of the company.
If they family can no longer afford to pay the lease, and default on the rent, is the guarantor still accountable, given that he no longer works for the company?
0
Comments
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i suggest you need legal advice on this - but i would have thought the answer is yes the guarnator is still liable. - the guy has guaranteed the rent - how his life/business changes throughout the tenancy can have no affect on his legally binding guarantor agreement.0
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If the guarantor had only signed as director of the company that would be no different than signing as the tenant (as the company), so I would think that the guarantor must be the director in person.
Generally if it says "Mr X, director of Y" as opposed to "Mr X as director of and on behalf of company Y", then it is Mr X.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
i suggest you need legal advice on this - but i would have thought the answer is yes the guarnator is still liable. - the guy has guaranteed the rent - how his life/business changes throughout the tenancy can have no affect on his legally binding guarantor agreement.
Agreed. I assume that the ex Director in question is also a family member.
Unfortunately the guarantee is personal and remains with the guarantor.0
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