Are Guarantors automatically covering a new contract?

by Readers Question

13:56 PM, 15th September 2015
About 3 years ago

Are Guarantors automatically covering a new contract?

Make Text Bigger
Are Guarantors automatically covering a new contract?

A letting agent is advising that when tenants renew a tenancy agreement i.e. sign a new contract for the next academic year the guarantor for the first contract automatically covers the new contract. automatic

I have reservations!

Relevant advice would be most welcome please.

Eileen



Comments

Luke P

10:57 AM, 16th September 2015
About 3 years ago

If it becomes a statutory periodic tenancy after the initial fixed term and states that the guarantors liabilities will continue to that effect in the initial agreement, then yes it would.

If this is a newly signed fixed term contract, then no.

Teg's Dad

14:40 PM, 16th September 2015
About 3 years ago

I agree with Luke. You cannot bind a Guarantor to a new tenancy without them signing another Deed of Guarantee.

Really surprised at the naivety/ignorance of the letting agent.

James Fraser

16:33 PM, 19th September 2015
About 3 years ago

Don't wish to add to the obvious, but your agent clearly hasn't got a clue. It is famously the case that a guarantor only continues (in perpetuity) where a periodic tenancy exists and is not reissued. If any new contract is entered into, the existing/old contract is negated. In these circumstances, the guarantor must always sign a new deed of guarantee before each new tenancy is issued, or their guarantorship will cease.

I would say I'm staggered by the agent's incompetence on this, but sadly Im not - it seems to be endemic across most of the lettings industry.

Teg's Dad

13:56 PM, 21st September 2015
About 3 years ago

Reply to the comment left by "James Fraser" at "19/09/2015 - 16:33":

James, you really should not make sweeping generalisations about agents. We do not like it when we, as landlords, are described as "greedy buy-2-lets" so restraint should be shown when living in a house with transparent walls, before throwing stones at letting agents.

I wear both caps BTW.

James Fraser

15:12 PM, 21st September 2015
About 3 years ago

Reply to the comment left by "Teg's Dad" at "21/09/2015 - 13:56":

Well let's hope you are better at it than the very very large number of agents across the country that I have to deal with. I often have to train them for my day job and the ones who think they know best are so woefully wrong on so many subjects one wonders where they get the information.

Teg's Dad

16:08 PM, 21st September 2015
About 3 years ago

Reply to the comment left by "James Fraser" at "21/09/2015 - 15:12":

I am.

James Fraser

16:46 PM, 21st September 2015
About 3 years ago

Reply to the comment left by "Teg's Dad" at "21/09/2015 - 16:08":

🙂

Top answer!


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Want to avoid empty properties over Christmas?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More