Guarantor question

ps124

Hi Guys,


Just a quick question about a gaurantor agreement I'm about to go ahead with. It's for a family friend, I understand the risks, and what it means to be a guarantor. However, the document has a lot of legal speak which im trying to go through line by line to decipher. The key bit im really keen to ensure is that the agreement is for 6 months only, after which I am free from the responsibilities of being a guarantor.



The agent sent me the document to sign but I asked him to amend a section to reflect the lenght of the contract. I have a few questions on what he has sent me:



Question 1:

Proposed Tenancy Start Date: 17th September 2018

Section 6. The tenancy is for a fixed term of 6 months, and this guarentee applies for the whole of the term and is not revocable during that term. The guarantor agrees to sign a new agreement as and when a new contract/fixed term is agreed.



I thought the last line was a bit flaky in that it makes it sounds like I have no choice but to agree a new period of being a guarantor should the person im guarenteeing decide to extend? Any thoughts?


Question 2
If the tenency becomes periodic or has become periodic by agreement or the operation of law, then this guarentee will continue until the tenant, landlord or agent serves the required notice and ends when the tenant leaves the proporty. In this case, the guarentee may be terminated by written notice by the guarentor and the guarentee shall end on the earliest date when posssion is or can be legally obtained, subject to the Tenant vacting on this date. If the tenenat fails to vacate the propoerty according to the landlords notice requireing possesion, then the guarentee shall continue until the tenant vacates. If, following notice by the guarentor, the landlord fails to take reasonable expedient steps to recover possesion, then the guarentee will end on the earliest date that this tenancy may be legally terminated by the landlord.
8. The gurantor will not be released from the liabilities arising under the Tenancy Agreement and the guarentee by any variation or amendment to the terms of the Tenancy provided that such variations or amendments are insubstantial and not prejudicial to the guarantor.
This is where I get lost. I don't mind being a guarentor for 6 months, and then I want to be free from it. Does the legal jargon above imply in any way this may not be possible?



Please help?

davidmcn

It's not a guarantee for 6 months, it's a guarantee until the end of your friend's tenancy (which is for an initial term of 6 months).

Had the landlord agreed to the principle of your guarantee ending after six months?

spadoosh

That legal jargon to me reads that basically you will be guarantor for as long as your friend is in that property.

pickledonionspaceraider

Seriously don't do it. It is a thankless task


You won't be free after six months.

ps124

Hi Guys,


My friend is an international student. Shes here for a 1 year masters, after which she will leave. The options given to her were find a uk based guarantor, or pay 6 months rent upfront. I agreed to be her guarantor. Her tenancy agreement is for 6 months, after which she will decide to extend by a further 6 months or find somewhere else. My ask to the agent was my guarantor agreement should end after 6 months, and then she will need to go through the process again for the next 6 months, either with myself (should I agree) or someone else. I basically wanted the option to have a 6 month break off clause. So are you guys uggesting this doesn't imply that? If my friend decides to extend by 6 months, am I automatically bound to agree another 6 months? Are you referring to this line:

The guarantor agrees to sign a new agreement as and when a new contract/fixed term is agreed.

Jox

It's too risky, maybe try to find an excuse not to do it. Perhaps you don't earn enough? (That was the excuse I used when I was asked to be a guarantor)

spadoosh

ps124 wrote: »

Hi Guys,


Just a quick question about a gaurantor agreement I'm about to go ahead with. It's for a family friend, I understand the risks, and what it means to be a guarantor. However, the document has a lot of legal speak which im trying to go through line by line to decipher. The key bit im really keen to ensure is that the agreement is for 6 months only, after which I am free from the responsibilities of being a guarantor.



The agent sent me the document to sign but I asked him to amend a section to reflect the lenght of the contract. I have a few questions on what he has sent me:



Question 1:

Proposed Tenancy Start Date: 17th September 2018

Section 6. The tenancy is for a fixed term of 6 months, and this guarentee applies for the whole of the term and is not revocable during that term. The guarantor agrees to sign a new agreement as and when a new contract/fixed term is agreed.



I thought the last line was a bit flaky in that it makes it sounds like I have no choice but to agree a new period of being a guarantor should the person im guarenteeing decide to extend? Any thoughts?


Question 2
If the tenency becomes periodic or has become periodic by agreement or the operation of law, then this guarentee will continue until the tenant, landlord or agent serves the required notice and ends when the tenant leaves the proporty. In this case, the guarentee may be terminated by written notice by the guarentor and the guarentee shall end on the earliest date when posssion is or can be legally obtained, subject to the Tenant vacting on this date. If the tenenat fails to vacate the propoerty according to the landlords notice requireing possesion, then the guarentee shall continue until the tenant vacates. If, following notice by the guarentor, the landlord fails to take reasonable expedient steps to recover possesion, then the guarentee will end on the earliest date that this tenancy may be legally terminated by the landlord.
8. The gurantor will not be released from the liabilities arising under the Tenancy Agreement and the guarentee by any variation or amendment to the terms of the Tenancy provided that such variations or amendments are insubstantial and not prejudicial to the guarantor.
This is where I get lost. I don't mind being a guarentor for 6 months, and then I want to be free from it. Does the legal jargon above imply in any way this may not be possible?



Please help?

Ive highlighted the bits that pretty much state that you will be guarantor as long as their in the property.

You can try getting them taken out of hte contract but if the LL was willing to do that, theyd probably be willing to not have a guarantor at all.

As suggested above i would recommend keeping out of it. Particularly if theyre not immediate family and if/when something goes wrong youll be chasing down someone who will no doubt be living abroad and under different legal jurisdiction.

POint them to the numerous companies that will offer to guarantor for a fee.

Alternatively tell them to get in touch with their student union to see if the university offers anything in terms of being a guarantor.

Youre opening up yourself to thousands of pounds of liability. The LL wont care youre not at fault, theyll only care about getting their money and that will always be easier targeting you than a student from another country.

ps124

Yes, I know its a thankless task and I'm just taking on unecessary risk, but I was thinking as long as it's for 6 months in order to help this person, it might be ok. I mean the person's family are well off in thier home country, so in that sense it's fine. What do you guys think?

Jox

Usually when you have an international student in this country from a well off family, their family can pay the 6 months rent.

Sea_Shell

As I understand it, you're not just guaranteeing the rent, but would also be responsible for damage caused, by say an out-of-control student party!!

Computer_Beginner

I was under the impression that a guarantor agreement must be a deed and signed with a witness.
So this agreement may not be binding anyway.
I would ask a solicitor to check it out for you. Probably worth the cost - which I'd ask the student to pay.