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Help! where do i stand as a lessee and a guarantor?!
SavingisFun
Posts: 43 Forumite
Hello all. Please listen to my situation!
I've recently signed up for an industrial unit for my band to play in.
I'm the lessee and the other 3 are guarantors.
The rent will be coming out of an account in my name only (via Standing Order) with all of us paying into it by direct debit. The rent is £125 a month, each will pay £31.25 into the account.
What liabilities do I hold, what liabilities do the other 3 hold?
Who would be taken to court if the rent bounced?
I have a worry that if someone wants to leave the band (i.e. a guarantor) and stops paying into the account that I will be financially liable for their share.
I've recently signed up for an industrial unit for my band to play in.
I'm the lessee and the other 3 are guarantors.
The rent will be coming out of an account in my name only (via Standing Order) with all of us paying into it by direct debit. The rent is £125 a month, each will pay £31.25 into the account.
What liabilities do I hold, what liabilities do the other 3 hold?
Who would be taken to court if the rent bounced?
I have a worry that if someone wants to leave the band (i.e. a guarantor) and stops paying into the account that I will be financially liable for their share.
0
Comments
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Also how long will I have to cancel the arrangement if needs be?0
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SavingisFun wrote: »Also how long will I have to cancel the arrangement if needs be?
We have no idea, what does your contract say?
Is it a fixed term? Is there a break clause?0 -
12 month lease
Unsure if there is a break clause0 -
Don't sign a contract you don't understand.0
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bristol_pilot wrote: »Don't sign a contract you don't understand.
I agree.
My understanding of it would be that you are liable for the rent as you are the person named in the contract. The other three are acting as guarantors so that if you did not pay the rent they would be expected to step in and cover it i.e. guaranting the LL gets his rent.
Obviously you have an arrangement between you to share the rent but ultimately it is you that is responsible for making sure it gets paid.
If you do not pay the rent it will be your credit record that is affected, not the other three in the band.0 -
But the landlord could take any one of you, or any combination, to court. As guarantors the others are equally liable. However the LL is likely to take the easiest option so if one of you left the band and, say, moved away, LL would probobly go after those who remain.0
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