Rent Guarantor issue
Discussion
About 5 years ago I was asked to be a Guarantor for my Brother's house rent - it is privately rented through an agent, but is paid for with housing benefits. I was happyish to do so at the time.
No issues since - other than the fact I am no longer on speaking terms with him, and this is unlikely to change.
His agreement is up for renewal in November 16 and I have received an email out of the blue from the agent advising me of a rental increase. I had actually forgotten about it all.
My question is, how do I get out of this? The agreement I signed states "cannot be revoked" but how enforceable would this be in reality?
I assume I can just withdraw from being his guarantor? My concern is that for some reason his benefits stop, he doesn't pay the rent and I get contacted out of the blue with a bill for thousands.
I wondered if anyone could offer any advice on the best way forward.
Thanks
No issues since - other than the fact I am no longer on speaking terms with him, and this is unlikely to change.
His agreement is up for renewal in November 16 and I have received an email out of the blue from the agent advising me of a rental increase. I had actually forgotten about it all.
My question is, how do I get out of this? The agreement I signed states "cannot be revoked" but how enforceable would this be in reality?
I assume I can just withdraw from being his guarantor? My concern is that for some reason his benefits stop, he doesn't pay the rent and I get contacted out of the blue with a bill for thousands.
I wondered if anyone could offer any advice on the best way forward.
Thanks
MOBB said:
My concern is that for some reason his benefits stop, he doesn't pay the rent and I get contacted out of the blue with a bill for thousands.
That's why they want a guarantor. Having been a landlord for 5 years I would not entertain renting to anyone who has nothing to lose. The odds are stacked very much in the tenants favour.They can strip the place of everything, not pay the rent, then trash the place and you have very little in the way of redress.
Page 14 here
http://www.letlink.co.uk/LUJ/lujdatastore/pdfCompl...
Basically you can give "reasonable notice". I'd give them a month and see what they say.
http://www.letlink.co.uk/LUJ/lujdatastore/pdfCompl...
Basically you can give "reasonable notice". I'd give them a month and see what they say.
Reading the article it sounds as though the end of a rental agreement is when you can give them notice that you wont continue supporting the rental guarantee. Even more so given the rental is increasing.
I wonder also if the initial rental agreement was 12 months, if that is all you are liable for. Might be worth asking to see the original agreement and hope that the pointy shoed ones have lost it!
I would also hazard a guess that an limitless guarantee for rent may fall foul of unfair terms and conditions given there is no way of ending the agreement and no limit on the amount you could potentially end up paying.
I wonder also if the initial rental agreement was 12 months, if that is all you are liable for. Might be worth asking to see the original agreement and hope that the pointy shoed ones have lost it!
I would also hazard a guess that an limitless guarantee for rent may fall foul of unfair terms and conditions given there is no way of ending the agreement and no limit on the amount you could potentially end up paying.
As a landlord, I think that if the rental agreement is up for renewal, then you just need to give formal written notice that you are no longer prepared to continue as a guarantor under any new agreement.
If, however, it is simply a rent increase which may happen at pre-determined times during the currency of an on-going rental agreement you may have to give longer notice and you may still be liable until the rental period comes to completion. This is more likely to happen with commercial properties as residential seem to be on 6-month or 12-month tenancy agreements and rents can only be varied at the end of the period if the tenancy is to continue with a new agreement.
If, however, it is simply a rent increase which may happen at pre-determined times during the currency of an on-going rental agreement you may have to give longer notice and you may still be liable until the rental period comes to completion. This is more likely to happen with commercial properties as residential seem to be on 6-month or 12-month tenancy agreements and rents can only be varied at the end of the period if the tenancy is to continue with a new agreement.
rgf100 said:
Page 14 here
http://www.letlink.co.uk/LUJ/lujdatastore/pdfCompl...
Basically you can give "reasonable notice". I'd give them a month and see what they say.
As the landlord has to give 2 months' notice to quit I'd suggest that 2 months rather than one would be more reasonable.http://www.letlink.co.uk/LUJ/lujdatastore/pdfCompl...
Basically you can give "reasonable notice". I'd give them a month and see what they say.
If you want to be seen as Mr nice guy, you could tell te agent that your circumstances have changed and that you are more than happy to continue but you limit your bond to eight weeks rent, so if the tenant defaults that is the amount you will continue to underwrite.
The landlord then has a choice of a tenant change with the inevitable voids and possible maintenanct/refurb spend; or landlord accepts your limited offer. If tenant has been paying the rent everybody probably happy.
This way you are doing the "right thing" without entering an unlimited open ended deal.
I am an agent and have had this one or two times
The landlord then has a choice of a tenant change with the inevitable voids and possible maintenanct/refurb spend; or landlord accepts your limited offer. If tenant has been paying the rent everybody probably happy.
This way you are doing the "right thing" without entering an unlimited open ended deal.
I am an agent and have had this one or two times
Rangeroverover said:
If you want to be seen as Mr nice guy, you could tell te agent that your circumstances have changed and that you are more than happy to continue but you limit your bond to eight weeks rent, so if the tenant defaults that is the amount you will continue to underwrite.
The landlord then has a choice of a tenant change with the inevitable voids and possible maintenanct/refurb spend; or landlord accepts your limited offer. If tenant has been paying the rent everybody probably happy.
This way you are doing the "right thing" without entering an unlimited open ended deal.
I am an agent and have had this one or two times
Thanks, very useful - might be an option, as I said I have no desire for him to be kicked out.The landlord then has a choice of a tenant change with the inevitable voids and possible maintenanct/refurb spend; or landlord accepts your limited offer. If tenant has been paying the rent everybody probably happy.
This way you are doing the "right thing" without entering an unlimited open ended deal.
I am an agent and have had this one or two times
98elise said:
That's why they want a guarantor. Having been a landlord for 5 years I would not entertain renting to anyone who has nothing to lose. The odds are stacked very much in the tenants favour.
Do people easily get guarantors? My brother asked me after his divorce - we don't have much to do with each other and he comes across as a bit simple and has made some dodgy financial decisions (including marrying the girl he did). I'd help him out but no way would I get into something with unlimited liability.
No idea, sorry. My only involvement in this area was when our kids were at Uni.
I made very sure that we weren't on the hook for an unlimited amount.
A couple of clauses were ambiguous so I got my solicitor to check them out.
He advised me not sign until they were redrafted. Didn't get any grief from the LL.
I made very sure that we weren't on the hook for an unlimited amount.
A couple of clauses were ambiguous so I got my solicitor to check them out.
He advised me not sign until they were redrafted. Didn't get any grief from the LL.
The issue you'll have with giving notice to terminate your role as guarantor whilst your brother is still in residence, is if your brother then won't move out and the LLD has to evict him, is that you'll be on the hook for the eviction costs etc... Double trouble I'd say if you're no longer on speaking terms.
Just to balance the negativity a tad
When MOBB's brother took the tenancy the LL had no knowledge other than perhaps some references of him and wanted a guarantor - understandable.
Now the LL has had five years and will know he is a stable tenant otherwise he would have kicked him out a while back or at least reviewed the rent before now.
On that basis LL may not be that fussed that MOBB wishes to drop out - probably less so than wanting a void and a refurb.....
When MOBB's brother took the tenancy the LL had no knowledge other than perhaps some references of him and wanted a guarantor - understandable.
Now the LL has had five years and will know he is a stable tenant otherwise he would have kicked him out a while back or at least reviewed the rent before now.
On that basis LL may not be that fussed that MOBB wishes to drop out - probably less so than wanting a void and a refurb.....
Sheepshanks said:
98elise said:
That's why they want a guarantor. Having been a landlord for 5 years I would not entertain renting to anyone who has nothing to lose. The odds are stacked very much in the tenants favour.
Do people easily get guarantors? My brother asked me after his divorce - we don't have much to do with each other and he comes across as a bit simple and has made some dodgy financial decisions (including marrying the girl he did). I'd help him out but no way would I get into something with unlimited liability.
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