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Does a guarantor's liability end when the AST does?
merlinthehappypig
Posts: 1,106 Forumite
Another ending of AST question, sorry.
Our LA came round today and we are going onto a periodic tenancy when the 12 month AST ends.
When we took on the tenancy we had to provide a guarantor as I couldn't provide an employer's reference due to early medical retirement. It was all a bit daft really as the only person I could use was my Dad who is 70 and whose income is lower than mine. This was despite my offering to pay 6 months up front.
I asked the LA if, now that we had paid 12 months regularly on time without problem, whether my Dad's guarantee could be withdrawn. We had been told this would happen by the LA at the time who has now left.
The LA didn't know, but thought not.
The AST mentions the guarantor, but is fixed for 12 months. There is no mention of any extension to the rental in the AST. We are going on to a periodic tenancy with no additional paperwork. I assumed that the guarantee was specific to the 12 month AST and that they would have to get him to agree to any further guarantee.
Any thoughts?
Our LA came round today and we are going onto a periodic tenancy when the 12 month AST ends.
When we took on the tenancy we had to provide a guarantor as I couldn't provide an employer's reference due to early medical retirement. It was all a bit daft really as the only person I could use was my Dad who is 70 and whose income is lower than mine. This was despite my offering to pay 6 months up front.
I asked the LA if, now that we had paid 12 months regularly on time without problem, whether my Dad's guarantee could be withdrawn. We had been told this would happen by the LA at the time who has now left.
The LA didn't know, but thought not.
The AST mentions the guarantor, but is fixed for 12 months. There is no mention of any extension to the rental in the AST. We are going on to a periodic tenancy with no additional paperwork. I assumed that the guarantee was specific to the 12 month AST and that they would have to get him to agree to any further guarantee.
Any thoughts?
0
Comments
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The guarantor lasts for as long as you are a tenant, unless agreed otherwise.
The wording I have is, "the guarantee shall continue for the duration of this agreement and any extensions granted thereafter.."I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Thanks silvercar.
Mine isn't as specific. Under 'guarantor's obligations' it lists the usual, but says 'under this agreement' several times. As the 'agreement' is a fixed AST of one year it seemed to me that the guarantee would end when the AST did.
It's not a huge problem - I'd just prefer it if he wasn't a guarantor any longer.0 -
Don't assume that because the fixed term of the AST has ended and the tenancy has become a Statuatory Periodic Tenancy that this means the AST itself has ended......it hasn't.
All the terms of the original AST are carried over to the SPT except the expiry date so the gaurantor is still liable.0
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