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Bought with 12mth Tenancy agree and Guarantor Deed is Guarantor still Liable

Started by Robert H, July 21, 2016, 05:26:33 PM

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Robert H

Hi

Hopefully someone with  can put me straight?

I am getting doubts on a tenants ability to pay the rent.

I bought the property in January 2016 and the tenants signed the tenancy agreement for 12 months with a break clause after 6 months. The agreement was put in place by Mann and Co estate agents and a guarantor deed was signed by the father of one of the tenants. I have taken on the management myself since owning the flat and have not drawn up any new Tenancy agreement although I and the tenants agreed to continue as before.

It appears as though the couple have split leaving the girlfriend who is not related to the guarantor in the flat.

My initial question is can I enforce the guarantor deed as it says it is between the former landlord (named and the guarantor) and not between me and the guarantor.

I think I possibly can because section 2 in the deed says it continues by operation of law

2. The Guarantee shall continue throughout the period that the Property is occupied by the Tenant or any licensee and is not limited to the term specified in the Agreement. This Guarantee will continue throughout the Tenancy or any extension renewal or re-grant continuation of the Agreement whether for a further fixed term or periodic tenancy and whether it is created by agreement between the Landlord & the Tenant or by operation of law or otherwise.

My next question is what happens at the end of the 12 moth tenancy- can I get the tenant to sign a new agreement and would that be binding on the guarantor?
Or
Should I just let the tenancy continue and roll onto a Periodic Tenancy

On the face of it - it appear I have the guarantor over a barrel - unless the tenant leaves then the guarantor must pay the rent?

Lastly it appears that the guarantor is saying they did not see sight of the actual tenancy agreement and I can find no documents to say they did. Although there is a 1 page signed agreed terms produced prior to the tenancy agreement being drawn up that said what would be included in the tenancy agreement giving the start date, the term 12 months and a break clause of 6 months.

What is my position?

Hippogriff

You can't claim a Guarantor has seen a tenancy agreement because another piece of paper they saw detailed what would be in the tenancy agreement. It is imperative the Guarantor sees the tenancy agreement. They should sign it, witnessed. I think you may be on shaky ground. I don't think the change of personnel is your issue... that happens.