Can I still rely on guarantors?

by Readers Question

13:47 PM, 19th March 2020
About 8 months ago

Can I still rely on guarantors?

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Can I still rely on guarantors?

If the tenant, who decides for whatever reason to stop paying their rent even if having work or the funds, and has a guarantor does this emergency legislation stop landlords from going the the guarantor for the rent.

Or is it only to stop the serving if s21 or s8 notices. Not talking about evicting the tenant for non payment.

Can one still issue a s21 if rent is still being paid and on a periodic tenancy if the AST is not renewed by either tenant or landlord.

A Buy To Let mortgage holiday isn’t applicable as the rent is my sole income which I use for day to day personal living expenses ie food, bills etc.

Many thanks

Judith


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Comments

Neil Patterson

13:51 PM, 19th March 2020
About 8 months ago

Hi Judith,

The Government press release does not mention call on guarantors >> https://www.property118.com/three-month-mortgage-payment-holiday-extended-to-buy-to-let/

However the full draft legislation is still yet to be published so there will likely be more detail.

Ian Narbeth

14:19 PM, 19th March 2020
About 8 months ago

If your guarantee is properly drawn up, the guarantor will be liable for rent and you don't have to evict the tenant. However, we await the legislation.

Luke P

14:50 PM, 19th March 2020
About 8 months ago

There was talk of the rent being 'not lawfully due', so I don't think you'd be able to get it from the guarantor either...

Ian Narbeth

14:56 PM, 19th March 2020
About 8 months ago

We'll have to wait and see. I think the intention is to defer rent and to provide that the landlord cannot evict the tenant. Claiming from the guarantor does not cause the tenant to lose his home.

Monty Bodkin

14:59 PM, 19th March 2020
About 8 months ago

There was talk of the rent being 'not lawfully due'

That is all it was, talk.
Tenants (and guarantors) are still liable for the rent.

Monty Bodkin

15:04 PM, 19th March 2020
About 8 months ago

Reply to the comment left by Ian Narbeth at 19/03/2020 - 14:56
I think the intention is to defer rent

Nothing whatsoever about that here or in any other briefing or reputable source;

https://www.gov.uk/government/news/complete-ban-on-evictions-and-additional-protection-for-renters

Ian Narbeth

15:15 PM, 19th March 2020
About 8 months ago

Reply to the comment left by Monty Bodkin at 19/03/2020 - 15:04
Hi Monty, reading between the lines there is. Paragraph 4 of the article you link to says:

"At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances."

A repayment plan implies repayment of arrears.

Landlords won't be able to evict but the rent will ultimately be payable. Whether tenants can "catch up" and pay off accrued arrears is a different matter.

Luke P

15:19 PM, 19th March 2020
About 8 months ago

Reply to the comment left by Monty Bodkin at 19/03/2020 - 14:59
Talk by someone that has the ear of Government and whom they use to co-write legislation...

"The effect would be that for assured, assured shorthold, secure or Rent Act tenants, where there was failure to pay contractual rent that was in any way related to the effects of the coronavirus during a designated period, this would not count as rent lawfully due for the purposes of the relevant rent arrears grounds of possession."

https://nearlylegal.co.uk/2020/03/emergency-measures/?utm_source=mailpoet&utm_medium=email&utm_campaign=new-on-nearly-legal-newsletter-total-new-posts_1

Monty Bodkin

15:43 PM, 19th March 2020
About 8 months ago

Reply to the comment left by Ian Narbeth at 19/03/2020 - 15:15
That is purely in the context of evictions.

Monty Bodkin

15:49 PM, 19th March 2020
About 8 months ago

Reply to the comment left by Luke P at 19/03/2020 - 15:19Talk by someone that has the ear of Government
Clearly not because 2 days later that left-wing unworkable Christmas wish list was screwed up and thrown in the bin.

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