Guarantor responsibility beyond initial tenancy period?

StrangelyCurious

Hi

I agreed to be a guarantor for somebody with an Assured Shorthold Tenancy for 6 months. The 6 months is coming to an end, which I thought would free me from the responsibility, but I have been told by the letting agents that should the tenants wish to continue their tenancy, or move to another larger property with the same after the six-month period, or move to another larger property with the same agents, then I am still liable as guarantor.

This doesn't seem fair and I wonder if it is actually correct?

Any advice greatly appreciated!

theartfullodger

Fair ain't the point - read the agreement you signed and see what it says (I can't read it from here.

Two key questions:

Was it "executed as a deed" (it will say if it was)
Was your signature witnessed?
Had you been given a copy of the tenancy before you signed?

Rats! Can't count!

BitterAndTwisted

When you agree to sign up as a guarantor it's usually for the entire duration of the tenancy not just the initial fixed-term. Just guaranteeing the rent and damage for the first six months would be useless to most landlords.

Did you sign a Deed?

pmlindyloo

Have a read of this to check your obligations.

http://www.landlordzone.co.uk/sureties_&_guarantees.htm

G_M

1) as said - you need to read the guarantor agreement you signed. But normally it continues as long as the tenancy continues. If the tenants move to a Statutory Periodic Tenancy ('monthly') when the 6 months is up, then normally the guarantor agreement continues. Does it say "for 6 months"?

2) It MUST have been 'Executed as a Deed' and witnessed

3) it canNOT be transferred to another tenancy (ie a different property). A condition of the Gtee Agmt being legal is that the Guarantor must understand what they are guaranteeing. Therefore they must have been provided a copy of the tenancy agreement before they sign. Thus a new property/new tenancy agreement would not comply.

Fire_Fox

StrangelyCurious wrote: »

Hi

I agreed to be a guarantor for somebody with an Assured Shorthold Tenancy for 6 months. The 6 months is coming to an end, which I thought would free me from the responsibility, but I have been told by the letting agents that should the tenants wish to continue their tenancy, or move to another larger property with the same after the six-month period, or move to another larger property with the same agents, then I am still liable as guarantor.

This doesn't seem fair and I wonder if it is actually correct?

Any advice greatly appreciated!

Already had some good answers so I will give a silly one. Imagine if they moved to a mansion with swimming pool and tennis courts and you still had to be guarantor! :eek: Luckily that is not the case.

G_M

Fire_Fox wrote: »

Already had some good answers so I will give a silly one. Imagine if they moved to a mansion with swimming pool and tennis courts and you still had to be guarantor! :eek: Luckily that is not the case.

You're making assumptions Fire Foxy - OP never said tenant was not moving to "a mansion with swimming pool and tennis courts "

Fire_Fox

G_M wrote: »

You're making assumptions Fire Foxy - OP never said tenant was not moving to "a mansion with swimming pool and tennis courts "

:eek: Luckily for me by 'luckily' I meant luckily the OP will no longer be guarantor in that scenario. Maybe the tenant will stick to a sensible two bedroom flat?
http://www.rightmove.co.uk/property-for-sale/property-37224332.html

G_M

Well,... that's..... 'lucky'.....

Fire_Fox

G_M wrote: »

Well,... that's..... 'lucky'.....

:shhh: Just call me Four leaf Fire Fox!

StrangelyCurious

Thanks for all the replies, especially G_M and Fire Fox (who was particularly reassuring).
Yes it was a guarantor agreement I signed, and it was witnessed (although I can't see the term 'Executed as a Deed' on it anywhere), and although it does say on the tenancy agreement about them being able to move to a Statutory Periodic Tenancy after the six-month period, it doesn't actually say that it would continue the guarantor agreement with it. Therefore I obviously didn't fully understand what I was guaranteeing, but maybe that was just as much my fault as the letting agents.
I'm heartened (did I just actually use that word?) to know that it cannot be transferred to another tenancy however, as I know they definitely do need to move in the near future.
Thanks again!