Are you a Guarantor? Are you worried about your liability?
You should be.
It is not always realised that when granting a Guarantee for one of joint tenants, the Guarantor is in effect guaranteeing the liabilities of ALL the joint tenants.
The reason for this is that joint tenants are ‘jointly and severally liable’ for all money due to the landlord. So, if you give a Guarantee to your daughter Sally – you will be liable for what she is liable for (as regards her liability to the landlord). So this means that, in most cases the landlord can also claim on you for any rent unpaid by her flatmate Jane.
This is why we developed our Guarantor Friendly Guarantee.
In essence, the Renters Guide Guarantor Friendly Guarantee provides as follows:
- It refers to a specific tenancy agreement and names the parties to that agreement and the property let
- It states that the Guarantee is given in respect of the liabilities of one of the joint tenants – described as the ‘individual tenant’
- The liability for rent is limited to the individual tenant’s share
- For other liabilities (eg damage to the property) you do not have to pay if it can be proved that the individual tenant did not do the damage
- The Guarantor’s liability is limited to a proportionate share of the landlord’s loss, and
- There is a limit on the overall sum that the landlord can claim for damage
- You cannot end the Guarantee before the end of the fixed term, but
- You can end the Guarantee after the fixed term ends upon giving two months notice to the landlord
- You will then only be liable for money due from the individual tenant before the Guarantee ends
This will give you considerably more protection than you will get from a standard form of Guarantee where you could end up being liable for thousands of pounds for rent arrears and damage which are down to one of the co-tenants.
The Guarantor Friendly Guarantee is available to purchase for £15.00.
Detailed guidance and a draft letter to use if you wish to end your liability after the fixed term is included.