Cancelling a guarantor mid contract
A friend has just asked what they need to do as a tenant wants to cancel his guarantor after 4 months of a 12 month contract.
Do you think I have advised correctly?
1) get a new Guarantor signed up first before making any other changes.(including credit checks)
2) When that’s sorted out create a new AST – for the remaining months (at least 6) and get it signed.
3) re issue deposit documents.
4) Get a new dated signature on the Inventory.
Have I missed anything?
Cheers
Allan Wadsworth – Portsmouth
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Member Since January 2011 - Comments: 12193 - Articles: 1395
10:15 PM, 1st June 2014, About 12 years ago
Looks good to me Allan 🙂
.
Member Since August 2013 - Comments: 883
8:30 AM, 2nd June 2014, About 12 years ago
There is no need to do anything regarding the tenancy, inventory, or the deposit, I think: first create a new guarantee, then release the original guarantor (whatever legal form that might take).
But that’s a question for a lawyer, really.
Of course the landlord should think long and hard before accepting what the tenant wants him to do.
Member Since July 2013 - Comments: 293
1:54 PM, 2nd June 2014, About 12 years ago
Depending on whether the inventory /deposit documents specifically names the Guarantor, I agree with Romain and would only create the new guarantee, and would do so by wording a deed of assignment similar to that used for one tenant taking over from another, but this time one Guarantor taking the place of another mid tenancy, assuming no other material alterations to the contract/deposit is taking place eg. if the deposit was paid by the guarantor and has to be repaid at this point. Pay careful attention to who this new Guarantor is and ensure you thoroughly check them out. It really depends on how your papers are structured now ( eg. whether the Guarantor signed the same tenancy agreement as the tenant, or whether they just had sight of the TA) as to what ones you will need to alter.
Member Since September 2013 - Comments: 48
10:06 PM, 2nd June 2014, About 12 years ago
Many thanks Romain and Yvette.
As the guarantor is included on the AST document do you both still think there is no need for a new one?
Cheers
Allan