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Being chased for unpaid as a Guarantor.

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MassUk
MassUk Posts: 15 Forumite
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in House buying, renting & selling
Hi,

Really could do with some advice on my situation.

I was a guarantor for a tenancy agreement which expired in May last year. The AST agreeement contained only two clauses pertaining to the guarantor. 1) guaranteeing the tennant obligations under the agreement and 2) Making payment on demand if the tenant is unable to.

The tenant is still in the property under an ongoing periodic tenancy agreement, this has been the case for 12 months without my knowledge. The original AST agreement makes no reference to this although I do now understand it’s the law.

I was not presented with nor did I sign a separate deed of guarantee.

The landlord’s agent is chasing me for missed rent payments pertaining to months well after the initial term had finished last year.

What is my legal position? I beleive the LL/EA should have specified any ongoing liability after the original term in the form of a Deed or captured it in the original AST agreement.

Thanks.
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  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    You would need to see what the guarantee form says... Usually a guarantor paperwork covers off most of what you are saying, normally you would guarantee the tenancy, although the fixed term tenancy or AST has changed automatically to a periodic tenancy agreement it is not classed as a new tenancy so you would still be liable.
  • csgohan4
    csgohan4 Posts: 10,597 Forumite
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    This is why money and friends/family shouldn't mix most of all as a guarantor.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • MassUk
    MassUk Posts: 15 Forumite
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    buggy_boy wrote: »
    You would need to see what the guarantee form says... Usually a guarantor paperwork covers off most of what you are saying, normally you would guarantee the tenancy, although the fixed term tenancy or AST has changed automatically to a periodic tenancy agreement it is not classed as a new tenancy so you would still be liable.

    Thanks for your response. There is no guarantee form, the only reference to a guarantee are the 2 clauses in the AST agreement I outlined. Nothing else.
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    A guarantor's undertaking has to be sworn as a deed,. If they haven't got that, you are off the hook.
  • seashore22
    seashore22 Posts: 1,443 Forumite
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    How did you become a guarantor if you didn't sign something? What exactly happened when you agreed to do this originally?
  • MassUk
    MassUk Posts: 15 Forumite
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    seashore22 wrote: »
    How did you become a guarantor if you didn't sign something? What exactly happened when you agreed to do this originally?

    I signed the AST agreement which had a section for the guarantor. However, that was only the 2 clauses I have outlined in the initial post. There was no deed of guarantee which normally has a clause or clauses defining the obligations beyond the initial fixed term.

    do you have a view from a legal perspective.
  • MassUk
    MassUk Posts: 15 Forumite
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    Davesnave wrote: »
    A guarantor's undertaking has to be sworn as a deed,. If they haven't got that, you are off the hook.

    Cheers Dave, from what you have read from my posts do you think any undertaking on my behalf has been sworn as a deed?
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    edited 23 May 2018 at 8:55AM
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    MassUk wrote: »
    Cheers Dave, from what you have read from my posts do you think any undertaking on my behalf has been sworn as a deed?
    No time to look now, but here is the most useful reference I can find at short notice.


    https://uk.practicallaw.thomsonreuters.com/7-523-6570?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1



    Others will be along shortly, I'm sure.
  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    Davesnave wrote: »
    A guarantor's undertaking has to be sworn as a deed,. If they haven't got that, you are off the hook.

    This is not true although often is to avoid ambiguity, although the wording may not be totally water tight it is quite clear as he signed agreeing to cover the obligations of the tenancy, that tenancy is still in effect even if it went from a fixed term to periodic...

    You could try to fight it in court (If the landlord goes that far), however if you lose you could end up with a far bigger bill and a ccj.

    Too many people become tenancy guarantors without fully realising what this means...

    I think the OP really needs to have a firm word with the tenant as to why they have not paid the rent and get them to pay their rent.

    You may be able to give notice that you no longer want to be a guarantor however this will likely end the tenancy and the tenant will be evicted.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    You agreed to guarantee the tenant's obligations for the entire time they are a tenant.
    They are still a tenant, but have been missing payments.

    I don't see why you would think this is anything but exactly what you signed up to do...
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