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Thomas
Thomas, Lawyer
Category: UK Law
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Experience:  BA (Hons), PgDip, Practising Solicitor
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I am guarantor for my daughter who lives in a rented house.

Resolved Question:

I am guarantor for my daughter who lives in a rented house. Her assured shorthold tenancy is due to expire - will I still have guarantor obligations if she is allowed to stay there under a periodic tenancy agreement? The local housing department have told me it should be sufficient for me to write to the landlord confirming that I would to remove myself from any guarantor obligations but I'm not sure this is legally correct.
Submitted: 5 years ago.
Category: UK Law
Expert:  Thomas replied 5 years ago.

Hi,


What does the guarantee actually state?

 

Usually it would be drafted by reference to your guaranteeing the tenant for the length of the term including any period of holding over or statutory continuation of tenancy


Tom

Customer: replied 5 years ago.
Hi

This Guarantee and Indemnity shall continue from the date hereof and for the entire term of the Tenancy Agreement and for any extensions or continuation thereof and shall include any subsequent increases in rental throughout this period and shall apply to acts omissions and default of the tenant in respect of the Tenant's obligations and liabilities under the tenancy agreement to pay rent. This Guarantee and Indemnity shall not be revocable by the Guarantor nor shall it be discharged by the death or notice thereof of any partner in the Guarantor bla bla. It does also say under WHEN GUARANTEE IS TO CEASE If the Tenancy Agreement is terminated by agreement the Guarantor shall not incur any further liability hereunder after the date fo the said assignment or termination but any liability of the Guarantor to pay any sums accrued at the date of such termination shall remain unaffected......
Expert:  Thomas replied 5 years ago.

Hi,

 

Yes, that would bind you for any arrears relating to the period after which the initial fixed term of the tenancy agreement has come to an end.

 

The important part is the reference to liability for any extensions or continuations thereof. This includes when the tenancy continues as a statutory periodic tenancy and is the reason that it is drafted in this way. If you daughter owes money to the landlord for time during which she is occupying under the SPT then they will be able to recover this from you under the guarantee.

 

I would engage with the landlord and ask him to keep you up to date in respect of any arrears that accrue and/or when he serves your daughter notice to vacate. He could serve a s21 notice requiring possession giving two months notice with such notice to expire at the end of a rent period. If you daughter pays rent persistently late, or becomes two months in arrears then he could serve a s8 notice giving only two weeks notice.


It is important that you are kept up to date as to when any arrears accrue. The landlord is not under an obligations to servce notice if there are arrears (although practically most do obviously) so you should focus on not letting any unnecessary arrears accruing.


Sorry it could not be better news.


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Kind regards,


Tom

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Customer: replied 5 years ago.
Hi Tom

Thanks for you advice. She's not actually in arrears but I need to raise a loan and the finance company have asked if I am currently a guarantor, which will affect any application I make. Ah well thanks anyway.

Best wishes

Julia

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