Guarantor - Read and understand before you sign, and dont be hassled by anyone

granthar

Last year to help my elderly mother in law out I acted as guarantor for her for a flat rental. I made it very clear to the letting agent that because of her age I was not willing to do this for more than 12 months as it was too big a risk if she died on day 1 of the next 12 months tenancy as I could be liable for another 12 months of rent.

When signing up, because of her situation, the Letting Agent pressured me into returning the signed deed within 24 hours.

So I just checked with the Letting Agency and they say I am liable until the end of any tenancy.

So my message to anyone is clear, do not act as a guarantor for anyone as for this type of legal agreement there is no end date you could be liable for 30 years or more. It seems that the Landlord and Tenant have to sign a yearly agreement but the guarantor does not.

elsien

Or alternatively you could check what you are signing and only agree to sign if the end date is clearly in there and you understand and are amenable to all the terms and conditions.

aneary

granthar wrote: »

Last year to help my elderly mother in law out I acted as guarantor for her for a flat rental. I made it very clear to the letting agent that because of her age I was not willing to do this for more than 12 months as it was too big a risk if she died on day 1 of the next 12 months tenancy as I could be liable for another 12 months of rent.

When signing up, because of her situation, the Letting Agent pressured me into returning the signed deed within 24 hours.

So I just checked with the Letting Agency and they say I am liable until the end of any tenancy.

So my message to anyone is clear, do not act as a guarantor for anyone as for this type of legal agreement there is no end date you could be liable for 30 years or more. It seems that the Landlord and Tenant have to sign a yearly agreement but the guarantor does not.

Do you not like your MIL?

Ronaldo_Mconaldo

elsien wrote: »

Or alternatively you could check what you are signing and only agree to sign if the end date is clearly in there and you understand and are amenable to all the terms and conditions.

But they only had 24 hours to read it! And they were under “pressure”!

Pixie5740

The tenant does not have to sign a new contract every year and I think most of us on the forum already understand the obligations of being a guarantor or would at least find out before signing anything.

Were you given a copy of the tenancy agreement to read prior to signing the guarantee?

LEJC

There would be such things as notice periods after the initial rental period.

You are liable until the end of the tenancy...yes but that is not fixed at 30 years or even 1 more year unless the tenant agreed to it.

Why would you only want to act as guarantor for one year...what did you think would happen after that time......

granthar

In this instance I would effectively be acting as guarantor until she dies and beyond, as if she died on day one of the next period then I could have to pay 12 months rent.

To be honest it wasn't my problem what would happen after the initial 12 month period.

So my post was more of a warning to others about the risk of acting as guarantor for an elderly relative as the tenancy doesn't end when they die.

LEJC

the moral; of the story is to read before you sign....and then understand what you are reading before you sign.....as with any contract,the words are not there for decoration.

G_M

You had 3 simple choices and it was entirely up to you which to choose, based on your own finances, your generousity (or otherwse) your feelings for your MIL etc:

1) refuse to be guarantor

2) agree to be guarantor under whatever terms the landlord required

3) agree to be guarantor but on your own terms which you would ensure were written into the Deed of Guarantee before you executed it.

In this case, you had 24 hours to read, understand, and consider what you were signing. If you did not understand it, you had time to post a query here, or speak to a solicitor, or seek advice elsewhere.

Your choice, or mis-choice, is of no help to others facing a similar choice whose personal circumstances will be different.

granthar

No where else would there be a contract in law where there is no effective end date and no limit to liability. Unless anyone wants to give me an example where this is the case.

aneary

granthar wrote: »

No where else would there be a contract in law where there is no effective end date and no limit to liability. Unless anyone wants to give me an example where this is the case.

Marriage. :j