GDPR Cookie Consent by SimpleServe Privacy Script Legality of a Guarantor Deed - AAD Consumer Forum

Announcement

Collapse
No announcement yet.

Legality of a Guarantor Deed

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Legality of a Guarantor Deed

    Hi, I would be very grateful if someone could advise me on a Deed of Guarantor. I will try to be brief! I was a Guarantor for my daughter & partners Tenancy agreement in 2018. I was told it would only be for the first 6 months until a new Lease was agreed. I did not receive any paperwork about a subsequent change in the Tenancy Agreement 6 months later which became a Periodic tenancy agreement because the Landlord tried to charge a fee which was, by then banned. Due to Covid and lockdown, my son in law's work completely stopped and he was one of the 3 Million Excluded. They were on a small amount of UC to pay toward the rent but this, in no way covered it. In spite of intense negotiations, the Landlord & his agent refused to come to any agreement about the payment of arrears. In spite of the Government advice about eviction, they were issued with a Section 21 after 3 months. I have subsequently discovered that the Deed of Guarantor & the Tenancy Agreement is issued in the name of a subsidiary of the Landlords company and is, in fact a Dormant Company and files no tax returns and shows no income. Is this Deed Legal please?? Can it be enforced? It has turned into a bit of a nightmare to be honest!

  • #2
    Hi, linda,

    Sorry i know nothing about tenancy agreements, I will see if PlanB is about to see if she knows about anything that may help.
    NW
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

    Comment


    • #3
      Thank you

      Comment


      • #4
        Hi Linda

        It is difficult to help without seeing the personal guarantee you signed. You say in your post that you were told it would be for the first 6 month period- was that confirmed in writing any where or if not was someone else present at the time?
        Legal Disclaimer
        I am a solicitor Advocate who specialises in consumer credit and my firm is Joanna Connolly Solicitors. My leading case of Carey v HSBC set the legal precedence for creditors compliance with s.77 & s.78 Consumer Credit Act 1974 statutory requests & enforcement of debts in court. Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at https://www.citizensadvice.org.uk.

        If you need to contact me you can send me a message by clicking my username or by emailing me at jo@joannaconnollysolicitors.co.uk or by telephoning 0330 053 9340.

        Comment


        • #5
          Hi, The landlord is, of course, disputing this. I have a signed Agreement although it is signed in the wrong place. The Agent was a bit hopeless. However, my main query is about how a Dormant Company showing no income from Rentals or Tenancies, can issue a Deed of Guarantee for a Tenancy. It is quite clearly in this Company's name. They are also still holding the deposit for the Tenancy, which was not actually placed in a Deposit Scheme but "insured" which means, they still hold the money. They are refusing to even discuss that and have not yet deducted it from the amount owed. I really need to know whether you would know if the Deed would be legal if issued by a company who is not trading. Thank you.

          Comment


          • #6
            Hi Linda if you would like to send me a copy of the signed agreement I will be able to advise further. Companies house accounting records are not up to date. The company may have been dormant when last accounts filed but had started to trade subsequently
            Legal Disclaimer
            I am a solicitor Advocate who specialises in consumer credit and my firm is Joanna Connolly Solicitors. My leading case of Carey v HSBC set the legal precedence for creditors compliance with s.77 & s.78 Consumer Credit Act 1974 statutory requests & enforcement of debts in court. Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at https://www.citizensadvice.org.uk.

            If you need to contact me you can send me a message by clicking my username or by emailing me at jo@joannaconnollysolicitors.co.uk or by telephoning 0330 053 9340.

            Comment


            • #7
              Hi, No, we have checked. They have been dormant up until last accounts filed last tax year. This Tenancy was taken out in 2018 and when we checked it has never filed any income from the Tenancy or the other tenancies it may manage. I only wondered if there is something in law about Dormant Company issued Deeds. It is going to court as they are being so difficult about the arrears and even though my family still have no real income until they can go back to work on the 12th April, they will not negotiate any agreement. I am a pensioner with only my home as an asset. The Landlord is a multi millionaire. So much for pandemic policies but I guess there will be so many tenants going through the same thing as there appears to be no help for tenants and their arrears, through no fault of their own.

              Comment


              • #8
                Hi Linda

                If the tenancy was taken out in 2018 then it would seem the the company was not trading at the time which is problematic for them. The guarantee itself could be unenforceable but I would need to see it to help further.
                Last edited by Joanna Connolly; 18 March 2021, 14:51.
                Legal Disclaimer
                I am a solicitor Advocate who specialises in consumer credit and my firm is Joanna Connolly Solicitors. My leading case of Carey v HSBC set the legal precedence for creditors compliance with s.77 & s.78 Consumer Credit Act 1974 statutory requests & enforcement of debts in court. Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at https://www.citizensadvice.org.uk.

                If you need to contact me you can send me a message by clicking my username or by emailing me at jo@joannaconnollysolicitors.co.uk or by telephoning 0330 053 9340.

                Comment


                • #9
                  Hi Joanne, I have emailed you direct.

                  Comment


                  • #10
                    Hi Linda

                    I have received the email. I have reviewed the guarantee and I consider that a court would find that the following provisions to be unfair terms and therefore unenforceable:

                    1. The guarantee to continue so long as the tenant is in occupation and notwithstanding any changes to the tenancy

                    2. The guarantee applies to the continuation of the tenant's occupation after the agreement expires whether it be by a new agreement or a periodic tenancy.

                    The guarantee doe not provide any provision to allow the guarantor to give notice of cancellation.
                    Legal Disclaimer
                    I am a solicitor Advocate who specialises in consumer credit and my firm is Joanna Connolly Solicitors. My leading case of Carey v HSBC set the legal precedence for creditors compliance with s.77 & s.78 Consumer Credit Act 1974 statutory requests & enforcement of debts in court. Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at https://www.citizensadvice.org.uk.

                    If you need to contact me you can send me a message by clicking my username or by emailing me at jo@joannaconnollysolicitors.co.uk or by telephoning 0330 053 9340.

                    Comment


                    • #11
                      Thank you so much! I feel much less worried! You're a star!

                      Comment


                      • #12
                        Sorry, one more thing - what about the Dormant Company bit? Is it true that a Dormant Company cannot issue a Deed of Guarantor when they are not trading or showing any income from the Tenancy (or even Tenancies for other people) Thanks
                        Last edited by Linda0704; 18 March 2021, 11:58.

                        Comment


                        • #13
                          Simple answer is they shouldn't but if they did then they have an issue with the Dormant accounts they have filed.
                          Legal Disclaimer
                          I am a solicitor Advocate who specialises in consumer credit and my firm is Joanna Connolly Solicitors. My leading case of Carey v HSBC set the legal precedence for creditors compliance with s.77 & s.78 Consumer Credit Act 1974 statutory requests & enforcement of debts in court. Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at https://www.citizensadvice.org.uk.

                          If you need to contact me you can send me a message by clicking my username or by emailing me at jo@joannaconnollysolicitors.co.uk or by telephoning 0330 053 9340.

                          Comment


                          • #14
                            Cannot Thank You enough Joanna - I will update you when it is over thank you

                            Comment

                            Working...
                            X