Guarantors legal liability throughout periodic?
I am still uncertain whether a guarantor can be held liable for various debts throughout a periodic tenancy.
Referencing a previous posting one member said “The key point is stating they`re responsible for the life of the tenancy whether that be fixed term or periodic.”
Even with such specific wording can a guarantor still LEGALLY be held liable when years may have passed, and the rent could be very different from when he/she agreed to be a guarantor?
This seems a rather dubious point and has this been challenged in the past with precedents?
Many thanks
Grahame
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Member Since July 2013 - Comments: 2002 - Articles: 21
9:49 AM, 30th August 2022, About 4 years ago
As a matter of law the answer is that the guarantor can be held liable even when the tenancy becomes periodic. However, it depends on the wording of the guarantee. If there is any doubt then the guarantee will be construed contra proferentem as the lawyers say – “against the one putting it forward.”
Unless liability is clearly stated to continue during any period beyond the end of the fixed term, the guarantor’s liability will not continue into this period (see Junction Estates v Cope (1974) 2 P&CR 482). Well drafted guarantees should cover this and make the guarantor liable.
Member Since September 2018 - Comments: 3538 - Articles: 5
11:52 AM, 30th August 2022, About 4 years ago
is there such a thing as a ‘standard guarantor form’?
I am considering using a agent to rent out a property this time round and a guarantor will be required. I am worried they just pull one of the internet and use that – how am I to be any the wiser?
Member Since August 2016 - Comments: 508
12:35 PM, 30th August 2022, About 4 years ago
It will be extremely helpful if the Ppty118 Legal Eagles may produce a template Guarantors form for all of us to use? Better than LLs going to their solicitors to have one drafted at individual cost?
I would be reluctant to trust a letting agent’s form unless it had been seen by someone legally qualified in this line of work?
Member Since September 2018 - Comments: 3538 - Articles: 5
1:45 PM, 30th August 2022, About 4 years ago
Reply to the comment left by Blodwyn at 30/08/2022 – 12:35
agree! What are the costs of drawing one up with a solicitor? Does everyone go down this route?