Is my signing as guarantor legally binding?

[auntiepeg]

I wonder if you could help. I agreed to be guarantor for a friend, she had already moved into the property, and a week later the landlord sent me a guarantor form. I did not sign it, as I wasn't happy with its wording. She sent a further form and again I said I wasn't happy with it, but wrote a letter stating that I would pay one months rent and give 3 months notice. I was expecting this to be put in contract form, as per the ones she had sent, but I didn't hear anything further.

In January 2008, due to a change in my financial circumstances I wrote to the landlord stating that I could no longer act as guarantor.

The landlord then wrote to me stating that my friend was in arrears of £800, but this was due to her not having sorted out her housing allowance. As I am a fair person, I did send her £100, leaving £375 outstanding.

My friend received a letter dated 17th April stating the arrears were £1080, my 3 months termination expiring on 16.4.08. The landlord then received payments in May totalling £1200 for housing benefit arrears. In the meantime she had taken my friend to court on 6.5.08, the arrears then being some £1200. My friend was served with an eviction notice, the moneys being paid after the court case.

Was my letter to the landlord legally binding?
Am I responsible for the outstanding amount of £375?

At the court proceedings for repossession and the outstanding rent owed, there was no mention made of any guarantor, but I did receive a letter from the landlord stating that I would be party to any such proceedings.

Many thanks in anticipation.



I would be most grateful if someone could help.

[Goldlady]

If you didn't actually sign anything after you sent your 'counter offer' then I think you are in the clear. You did not agree to the terms of their offer(s) and suggested an alternative. And if you were to be a party to the proceedings you would have been named on the court papers, and received a copy of the claim from the court.

I would wait and see what happens, but think they have little chance of succeeding. From what you have said the arrears are now cleared anyway.

[auntiepeg]

Many thanks for that Goldlady.

The problem is that the landlord keeps adding additional charges to my friend's arrears, it's rather a nightmare, and obtaining a statement for her actual arrears is proving to be problematic.

I was uncertain as to my legal standing regarding the letter and whether it was legally binding, or does such a guarantorship have to be witnessed and signed by the landlord too as in the original doucumentation which she sent me.

I shall wait and see what happens when my next payment is due to the landlord, and thank you again.

[MrShed]

A guarantorship is nothing but a contract. Your letter in writing is in effect a contract, and as such is enforceable. however, nothing more than what you have put in the letter is enforceable. How much is the monthly rent?

[auntiepeg]

The monthly rent is £475, and I did agree to pay one months rent, and give 3 months notice. I was naive to have done that I guess, but we live and learn. If the arrears were paid by back dated housing benefit, then does that relieve me of payments, or do I still have to pay it?

Does my 3 months notice include arrears after I gave notice too?

The landlord is not being very pleasant to my friend at all and knew the problems re the housing benefit.

Thank you for pointing out that the letter is a contract, I just expected my amendments to be put into contract form, and signed by myself and the landlord. My letter stating my revisions was dated December 2008, some 2 months after my friend had moved in to the property. My letter revoking being guarantor being dated 16.1.08.

It's a very complicated matter, the landlord waived the deposit for my friend, and has since charged her interest and £2.50 for each telephone call made etc and has asked for the deposit, which I deducted from the total amount outstanding. My friend has also stated that she will pay any arrears when she leaves and has asked me not to pay any more money.

[MrShed]

Needless to say, the landlord is not justified in some of his charges to your friend.

Although it is a contract, its a dubious one depending on the wording. My personal opinion is that although you ABSOLUTE maximum liability now lies at £375, I would probably be inclined to let the landlord sue you. Unlikely they ever would for one, and also you could question the fact that you were never aware whether the suggested "contract" was accepted. I think that there are enough loopholes in this one to let him sue you.

[auntiepeg]

Many thanks for that Mr Shed. Do I still have that liability though, even though the moneys have in effect been paid by the back dated housing allowance?

I can tell you what I said in my letter to the landlord if that helps.

[MrShed]

Sorry I missed the HB bit - no in that case I fail to see how you have any further liability.

The exact wording of the letter would help, yes.

[auntiepeg]

The problem is that there are still arrears, which I believe were accrued after my 3 months notice had expired. At the court hearing the judge stated that my friend had to pay the arrears, which were £1300, including £100 costs. The housing benefit payment was for about £1200, or perhaps just short of that. Should I write to the landlord explaining or wait until I get a letter asking where my next £100 payment is? Can I ask the landord for bank statements as opposed to a statement prepared by her, proving the amount owed?

I wrote this back to the landlord: With regard to the guarantee agreement, I am not too happy with the wording of it. I agree to pay one months rent of £475, but not for any breaches in tenacy agreement. With regard to being constues as 'prinipal debtor' and not being able to revoke the guarantorship, I am not happy with the wording of this either. In short I agree to pay one months rent and can cancel the guarantorship giving yourself 3 months notice. Apologies if this causes any inconvenience but I was not aware it was so binding.

The landlord has also said to my friend that she will also be adding £500 on to the outstanding balance for new carpets, when there is nothing wrong with the carpets that are down! A rogue methinks!

I'm sorry if I'm not explaining it too well, but as I said it is rather complicated and your help in this matter is very much appreciated.

I do have the 2 original contracts which I refused to sign, and the above letter was in response to the second contract being sent to me.

[auntiepeg]

I did forget to say that I did discuss the contract ( which I refused to sign) with her on the telephone, stating that I would just agree to pay one months rent. In the main body of the contracts which I refused to sign, she put in a line which read," This guarantee is limited to one months rent". This is why I was expecting a contract with just my offer in, not just a line added to a standard one. I am so pleased that I did not sign this contract!
I had completely forgotten about this until I have just reread the contract which I declined to sign.

[auntiepeg]

Further to the above, I did speak to her prior to her sending any contract out to me, which I guess throws a different light on things.