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Tenant and Guarntor issue

Started by welshboy26, December 27, 2022, 06:28:01 PM

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welshboy26

Hi there

Hoping someone can help me here as a first time landlord.

I have a tenant who is on a AST for 12 months which ends in a few weeks time, he has a guarantor (happens to be his boss). He was late paying his rent for several months until his guarantor was approached and they have been paying the tenants rent to me (takes the amount out of tenants wages each month).

The guarantor has stated he no longer is happy to guarantee the tenants rent as his AST is coming to an end soon. However on reading his Guarntor agreement, it states the blow, which I have read to mean that if the tenant is still in the property then the guarantor is still liable (even if goes onto a periodic tenancy);

6. If the tenancy is for a fixed term, then this guarantee applies for the whole of the term and is not revocable
during that term.
7. If the tenancy is periodic or has become periodic by agreement or the operation of law, then this guarantee
may be terminated by written notice by the Guarantor subject to the Tenant vacating at the earliest legally
permissible date required for possession. If the Tenant fails to vacate on this earliest date then the guarantee
shall continue until the Tenant vacates.
8. It is agreed that there shall be no right to cancel this Agreement once the tenancy has begun and the
Consumer Protection (Distance Selling) Regulations 2000 shall not apply in this case.

To complicate things further possibly, I sent them both a section 13 letter 4 notice to increase rent when it goes periodic. Where do I stand please?? I cant rely on the tenant to pay his rent and also had complaints about loud music from neighbours and so ideally want him OUT but don't think he will go quietly! Any help greatly appreciated!! Thanks

Riptide

Guarentor does want to guarentor, landlord does want tenant to rent. Sounds like it's time to serve notice.
Obviously dont enter into another fixed term. Wheres the property located?

heavykarma

Agree you should serve notice.You have been very lucky indeed that the guarantor has been  co-operative so far. I learnt very early on that you should never take a tenant who needs a guarantor.The legal protection you have means little in real life.You should come back here if problems arise getting him out. Good luck!