Private tenant guarantor, what are the rules?

Helen-Back

I am a private tenant in same property for last 10 years.
I have a family member that was a guarantor.

I want to know if there is any way of removing the liability of the guarantor.

The reason for this is regarding my previous post where I explain how my landlord has been making profit from the utility bills, but also making it so difficult to run my business that I have no option but to close it all down.

The guarantor deeds say that the guarantor will continue to be liable until the day I move out and even if the guarantor dies, the liability will still continue on to his estate.

So my question really is, if the landlord breaks the terms of contract by making profit on utilities, where does my guarantor stand if I fall into arrears due to the excessive bills causing me to fail.

Also, what happens if the guarantors circumstances have changed?
Also what if I were to fall out with the guarantor, now I could punish the guarantor by simply not paying rent?

Thank you.

 

dimbo61

What does it say in your contract ?
Can you serve 2 months notice and get out of this toxic environment ?
Do you really want to stay in the property and watch your business go under.
Start looking for a new home and somewhere else to run your business.
Cut off the electric to the other tenant. 

Helen-Back

Yes I can serve 2 months notice and move, but the problem is, my friends just moved, family of 6 and I know the trouble they went through to get their new property, it really is not easy to rent anything right now. LL don't like pets, children etc, I hate renting! And can't afford to buy!

I would need a guarantor again, and a large deposit no doubt as I did before. £10k deposit to cover first few months rent will be required min I am sure, this is what I paid when I moved here.

I am looking at starting a completely different business with my friend of 30 years. I need more time to move the current business, and obviously if I move I need my warehouse near where I move to, so moving and getting a new warehouse is too time consuming, I don't have the funds to last that long.

I think we will need to move soon though like you said, this toxic environment is not doing any of us any favours.

Grumpy_chap

I can't see any reason why the LL would release the guarantor as there is nothing in it for the LL.

£10k deposit at the outset was outrageous but, that is in the past.  New rules would not allow the same level of deposit to be charged.  If it was not a deposit, but advance rent, that is not particularly attractive to professional LLs.

Your only option is to serve notice and move both home and business.  You are in a fairly pricey part of the country based upon the rent you advised in the other thread so there should be options. 

Your area may be different but, where I am, warehouse units can be got very easily as they are in massive over-supply so unless you are paying well under market rate for the current warehouse that leaks and can't be used anyway.  Obviously, a different home plus warehouse are unlikely to be right on the same site as each other like you have now.

sheramber

Helen-Back said:

I am a private tenant in same property for last 10 years.
I have a family member that was a guarantor.

I want to know if there is any way of removing the liability of the guarantor.

The reason for this is regarding my previous post where I explain how my landlord has been making profit from the utility bills, but also making it so difficult to run my business that I have no option but to close it all down.

The guarantor deeds say that the guarantor will continue to be liable until the day I move out and even if the guarantor dies, the liability will still continue on to his estate.

So my question really is, if the landlord breaks the terms of contract by making profit on utilities, where does my guarantor stand if I fall into arrears due to the excessive bills causing me to fail.

Also, what happens if the guarantors circumstances have changed?
Also what if I were to fall out with the guarantor, now I could punish the guarantor by simply not paying rent?

Thank you.

 

These are the risks the guarantor takes when he agree to act as one.

canaldumidi

Helen-Back said:

The guarantor deeds say that the guarantor will continue to be liable until the day I move out and even if the guarantor dies, the liability will still continue on to his estate.

That seems clear, though it would be better if you quoted the exact words.

So my question really is, if the landlord breaks the terms of contract by making profit on utilities, where does my guarantor stand if I fall into arrears due to the excessive bills causing me to fail.

The guarantor's liabitity is exactly the same as the tenant's. If you owe rent, the rent can be claimed from the guarantor. If you/the guarantor show you do not owe rent eg due to overcharging on utilities, then there are no arrears so neither you nor the guarantor are liable. 

Also, what happens if the guarantors circumstances have changed? Nothing happens. Your 1st paragraph above makes that clear (subject to wording).
Also what if I were to fall out with the guarantor, now I could punish the guarantor by simply not paying rent? Correct. Becoming a guarantor is a major commitment. If the guarantor has made that commitment he must be confidant you would not act in such a way

Hope this clarifies.