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Question

Implied Terms in Tenancy Agreements (England) | Preventing Controlling and Recovering Rent Arrears (England)

Guarantor

31 Oct 2016 | 1 comment

Large letting Agent set up a tenancy for a 6 month fixed and with a guarantor, this then went onto periodic (3 years ago) ..No mention that the fixed term would automatically revert to periodic and no mention that the guarantor would still be liable until the tenant moved out.
Tenant has defaulted this months rent and the letting agent has gone after the guarantor as the tenant has just advised that she gave her notice in at work due to stress and can’t see herself working again.
What’s your take on this, can the agent go after the guarantor. We use GORL forms and your AST’s state that the fixed term goes to periodic and the guarantors form mentions that they will be responsible until the tenant moves out.

Answer

1 Comment

  1. guildy

    The tenancy will go periodic even though it remains silent so there’s no problem there. Your tenancy will go statutory periodic whereas ours goes contractual periodic at the end of the term. Our way is better for a landlord for council tax purposes but for your question it’s not relevant and doesn’t matter.

    I do however agree that the guarantor form should expressly state that their liability continues into the periodic tenancy. However, there is no harm in the agent chasing for the money via the guarantor. The guarantor may not understand the legal complexities and so it’s worth asking. Even without such a clause in the guarantee agreement it may be possible to claim. However, when the agreement expressly states it, it’s easier to argue in court that the guarantor remains liable.

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