How does a Guarantor stop being a Guarantor? (1 Viewer)

Groundrush

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I acted as Guarantor for my best friend when he & his family rented a property about 5 years ago.

I have never had any problems with this & actually forgot all about it until I received a letter from the letting agency.

The letter stated that they signed a renewal aggreement & that I am still obligated to be their Guarantor.

My question is how do I now opt out?
I feel that 5 years is enough time for them to prove that they are good tennants & there should be no need for me to be liable, surely there is a limit to how long you have to be accountable for.

Apart from that I have never been asked to sign any new contracts & I believe the cost of the rent has also changed a few times over the 5 year period. Does this mean that the contract is now void anway?
 

scott-atkinson

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I would imagine that 5 years ago when your friend first rented the property he probably either was a first time renter, or he had a very poor credit history.

When has now decided to re-new the contract, all the same variables will apply, so if your friend still has a poor credit rating then a guarantor will be asked for, despite the fact that he has been renting the property for years.

All contracts are for only a 6 month maximum assured tenancy term, after which, unles a new contract is drawn up, it goes month on month, which offer little security to the tenant and assurances for the landlord that they can give the tenant notice with out having to wait 6 months.

A way that your friend could avoid having a guarantor, is if they offer to put extra rent down upfront, the standard is 1 month in advance, but if they were to put 2 or 3 months down in advance then they may not need you as a guarantor.
 

Fifty2One

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There are different laws for different jurisdictions so unless someone jknows where you live the chances of an accurate answer are limited. I would suggest you review the papers originally drawn to see if there was a clause that you were in it for a specified duration or if you have signed on for a lifetime commitment.
Perhaps you can get a meeting with your friend and the bank and have the contract redrawn without your name as guarantor - if your friend still needs this for financial security then there is something very wrong with his financial abilities and perhaps it is too much of a risk to take and you should get your name stricken from the contract anyhow.
Best policy is dont lend money - even to a best friend/relative/spouse - they can screw you (purposely or not by their fault) as fast as they can say thank you. If you can not afford to give it to the person do not put yourself in the position of having to give it after the fact.
 

Vassago

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In Florida, the guarantor must sign any future lease agreements to continue to be liable. If they don't, they have no liability. I actually recently had seen a situation like this. My friend proved that the lease making her guarantor was expired and any future arrangements made between the renter and the owner excluded her.
 

GaryPanic

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You could just state in todays finacial situation , you are afraid that thinhgs may go pear shaped and you do not want to be be liable for any potentional debt... (this really is between you and your friend)
If your firend values the frendship he/she should understand,

However if they ahve rented for 5 years and its still with the same owner , seems a bit redundant -

If you are pushed into be a guarantor - put a time limit on it of 6-12 months
or get your firend to speak to citzens advise

see what there view is - or get the bankt o guantee the account ? - a little bit iffy this option
 

Rabbie

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Who guarantees the guarantor?
 

Steve R.

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In Florida, the guarantor must sign any future lease agreements to continue to be liable. If they don't, they have no liability. I actually recently had seen a situation like this. My friend proved that the lease making her guarantor was expired and any future arrangements made between the renter and the owner excluded her.
Not being an expert, I would agree with Vassago's assessment that the obligation of the guarantor expires when the lease expires.

What does the form that the guarantor signed actually say?
 

statsman

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Inform your friend ahead of time that you are about to do the following:
Send a registered letter to the agency stating that you are resigning as guarentor and that effective on a certain date you will no longer be responsible for this property.
Give the agency about 90 days notice.
Your friend has already proved over the past five years that he is good for the rent so it shouldn't be a problem.
 

Groundrush

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Thanks for all the advice.

I have checked the documents & I am liable for as long as the tennants use the property.

The main reason why he needed me in the first place was mainly down to not having a permanent job as he his work is contract based.

Hopefully one of these days soon things will change & be made permanent.
 

Fifty2One

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You are already five years in, looks like you are on the hook for many years to come.
 

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