Are Guarantors automatically covering a new contract?

Are Guarantors automatically covering a new contract?

13:56 PM, 15th September 2015, About 9 years ago 11

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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


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Comments

Luke P

10:57 AM, 16th September 2015, About 9 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 9 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.

Big Blue

16:33 PM, 19th September 2015, About 9 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 9 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.

Big Blue

15:12 PM, 21st September 2015, About 9 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 9 years ago

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

I am.

Big Blue

16:46 PM, 21st September 2015, About 9 years ago

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

🙂

Top answer!

Noseyrosey

10:55 AM, 5th February 2023, About A year ago

Hi I’m a guarantor but have just discovered the letting agent added a new clause the tenancy ( added anti social behaviour after obtains his landlord licence) I was not made aware of any changes and also the letting agency resigned the tenant up six months into her new tenancy and gave her a whole new tenancy without my knowledge is that acceptable? Plz help

Teg's Dad

12:45 PM, 5th February 2023, About A year ago

Reply to the comment left by Tracey Burke at 05/02/2023 - 10:55
Your guarantee applied only to the old tenancy and that before any amendments were added. The new tenancy is not guaranteed by you.

I suggest you write or email the agent pointing this out and confirming you are no longer the Guarantor.

As for adding clauses, if that was done after you signed then you are not bound by them unless you were advised beforehand and agreed to be bound by them.

Noseyrosey

18:46 PM, 5th February 2023, About A year ago

Thanks for your reply appreciate it 🙂 are you a solicitor by any chance ?

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