Guarantors advice needed urgently

needtogetoutofthishole

Hi

Due to a marriage breakdown and moving back from abroad, my mum needed a guarantor to be able to rent a property back in England. I reluctantly agreed as I couldn't put mum up myself and I coudn't see her homeless. Unfortunately the rent was defaulted and consequently a court order was issued to evict mum from the property. She did actually vacate the property before it went to court on 21st December 2010 but they still went ahead with the order for possession and placed a judgement for arrears of £1,320.89 and costs of £708.13 payable by 4.1.11.

As I was guarantor I have now received a letter from the landlords solicitor asking me to forward the total sum above within 14 days.
I know as guarantor I have no choice but to pay, but I don't have the total amount available to pay in a lump sum.

Could anyone advise how I reply to the solicitors to say that I will repay the amount, but I can only do it in small amounts on a monthly basis?

Also, could anyone advise if I'm entitled to see a breakdown of the arrears and proof that no rent was received? Also, mum hasn't received her deposit back and assumed that the landlord would take it as part payment towards the arrears? but I don't think they have.

Any advice would be greatly received.

BitterAndTwisted

Were you aware that these arrears were building up?

Write to the landlord's solicitors asking for a breakdown of the charges and ask what happened to the deposit. I see no reason why you cannot be furnished with this information. Please be warned that the landlord will probably take you to court to recover the monies owed so you absolutely need to communicate with the solicitor immediately. I doubt that they will accept a payment-plan if it's going to take more than a couple of months to settle what's owed. I know I wouldn't.

jaynes2326

Did you sign the AST as guarantor or did you sign a separate deed?

How long was mum in the property before the arrears began?

theartfullodger

As Jayne says, did you sign a separate deed??

In your shoes I'd write back to solicitor a calm & polite letter (not admitting you agree or will pay) asking for copies of all relevant paperwork in support of the guarantee.

As I understanding it, unless the guarantee was done as a "Deed" (enacted as a Deed), meaning it needs to be describe as such & needed to be witnessed, and that you had seen the tenancy agreement before signing, they can't enforce the debt (on you). They can of course continue to pursue mum.

I would not argue the point until I'd seen copies of whatever paperwork the solicitor has....

needtogetoutofthishole

Hi Guys

Thanks for the quick responses. I knew mum was having problems with claiming housing benefit as my 18 year old brother was also on the lease because of his age, and didn't realise that she wouldn't be able to claim the full amount. She did pay what rent she could when she could but "promised" that she would be able to sort it and I wouldn't need to get involved!!!

In response to jaynes2326 question - I signed the lease that both mum and the landlord signed. I wasn't asked to sign anything else.

I'll write a letter to the landlords solicitor today asking for a breakdown of the charges and what's happened to the deposit.

Thanks again guys.

theartfullodger

needtogetoutofthishole wrote: »

I'll write a letter to the landlords solicitor today asking for a breakdown of the charges and what's happened to the deposit.

Thanks again guys.

er,,, yes, but ask also for a COPY OF ALL RELEVANT PAPERWORK. The solicitor may not have any signed deed... If he doesn't then a breakdown of charges is very interesting but you can ignore them unless you want to to give money to the Landlord when you don't need to...

Cheers!

Artful (Landlord since 2000...)

jaynes2326

So far as I can recall from when I last looked at this kind of issue - when you sign as guarantor on the AST then you are only liable for arrears in the first six months of the tenancy - not for anything afterwards.

Unfortunately sounds as if the problems started early on in the tenancy.

As artful says - ask them for a copy of the document you signed and once you have that, take further advice.

Certainly they should accept a reasonable offer of payment from you, especially if you fill out a budget and send it off to them.

Good luck.

bris

The guarantor will move over to periodic just like the AST. No get out till the tenant leaves then it can be cancelled
This is from one of mine.

1. If the tenancy is periodic or has become periodic by agreement or the operation of law, then this guarantee may be terminated by written notice by the Guarantor subject to the Tenant vacating at the earliest legally permissible date required for possession. If the Tenant fails to vacate on this earliest date then the guarantee shall continue until the Tenant vacates.

needtogetoutofthishole

Just an update - have found out that the deposit is still being held with rental agent, who understands it is the landlords intention to offset it against the arrears, which is hopefully good news so I dont have to find the whole lot.

Does anyone know as guarantor if I do have to pay the costs, or if I only have to pay the rent arrears?

needtogetoutofthishole

I have also get hold of a copy of the tenancy agreement that I signed, and it is just that, no mention if 'deed' on it and only the landlords signature, mums signature and my signature. None witnessed at all - is that right?

bris

If the agreement was done correctly and you have no get out, then as guarantor you are liable for everything that your Mother was liable for.

"have found out that the deposit is still being held with rental agent"

If you are in Engaland or Wales and the deposit has never been protected in one of the schemes then I believe this may give you some leverage as its illegal not to protect the deposit.
Not sure how this works though so over to some one else.