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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10401
Experience:  I have been practising for 30 years.
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I agreed to be a guarantor for my partners son and partner

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I agreed to be a guarantor for my partners son and partner they disappeared from the property with out paying the rent and other payments. After 12 months of the agreement I wrote to the company telling them they needed to find another guarantor as I did not wish to continue. The company as now requested that I pay the outstanding balance of 1956.28 as they did not find another guarantor and the tenants can only make outstanding payments of 7 pound a week and the company has said they will accept the 7 pound but are not prepared to wait nearly 5 years for all the back pay I have to pay it and they don't. Can you please advise they are threating to take me to court even when the ex tenants have agreed to weekly payments

Hello for clarification - how long were they there before they disappeared?

who paid the deposit?

are you in touch with them now?

Customer: replied 1 month ago.
Martin left after a couple of months leaving is partner there about 12 months they must have paid the deposit I did not we don't know where Martin is he has disappeared but we had her new address and gave it to the company who contacted her and she responded by agreeing to pay weekly

I have been asked many times to give people advice on being a guarantor in the most accurate and comprehensive advice I can give is, “don’t, unless you are prepared to pay the full amount of whatever you are being asked to guarantee and assuming that the person with the liability never pays a single solitary penny and that you will never recover anything from them. Never guarantee anything that you are not prepared to lose!”.

I’m afraid that the landlord doesn’t have to take any offer if there is a guarantor. You are guaranteeing the contractual payment, and that is what they are entitled to.

Let me exaggerate to prove the point: at the moment, the tenant has agreed to pay 7 pounds per week. Assume that they had agreed to pay 1p per week- or even better, per month-or even per year (it’s just a matter of scale) you would not escape liability because there was an agreement for them to pay relatively small amount.

If there are arrears of 1956.28 even allowing for no interest, as you are aware, it’s going to take over five years to pay back and that is an unreasonable period of time.

I am assuming the tenant has now left the property and the tenancy agreement has come to an end and these are arrears which accrued during the tenancy and they are not increasing (except with regard to interest).

It’s worthwhile mentioning that the landlord, if he took this to court, would be entitled to add 8% interest onto the outstanding amount. That is 8% simple. I don’t know whether they are doing that. That is 156 pounds per year or 3 pounds per week. If that were the case, the amount of the balance is only coming down by 4 pounds per week so it’s going to take almost 9 ½ years to clear.

What you might want to do is come to an arrangement with the landlord perhaps to pay half of the amount in a lump to agree to settle out of court. They don’t have to accept less than the full amount, they can take you to court and provided the guarantee has been properly executed, could well end up with a judgement against you which would affect your credit history if you don’t pay it within the time specified in the judgement. It’s as well to stay out of court.

You do have the right of course to pursue your partners son and partner for any monies which you have to pay.

Can I clarify anything else for you?

I’m happy to answer any specific points arising from this.

Please take a moment to look at the top right hand corner of the page and rate my service by clicking one of the stars at the top of the screen. It’s important you use the rating service because that gives me credit. It doesn’t just give me a pat on the head! (Although there is an incentive scheme where the more five-star ratings I get, I do actually get a pat on the head! :-)) All you need to do is press Submit. Thank you.

If you still need any point clarifying, I will still reply because the thread does not close.

Best wishes.

FES.

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