Hello,
I am a bit puzzled by my friend's predicament and thought I'd see if anyone here has an opinion.
He is a chronically nice guy and agreed to stand guarantor for two friends so that they could rent a flat. The agreement he signed was with Letting Agency 1 and was for six months and any extensions. He didn't notice the extension bit.
So the six months ended and, after that, his friends fell into considerable arrears. They have been evicted and my friend is now being challenged for the outstanding cash and fees. Now, normally, I would tell him to accept liability - the paperwork was pretty clear.
However, after the six months ended, Letting Agency 2 took over and his friends signed a new tenancy agreement - he was not asked to sign that or consulted in any way. Various online sources seem to indicate that any new tenancy agreement to which he was not a party effectively end his liability.
So, I want to a) hear if you think he has a case not to pay b) if you think the below letter is clear on this and c) if the below letter could be improved upon.
I'd be really grateful to hear what you think.
Thank you very much,
Fliss
Dear Sirs,
Without prejudice
Thank you for your letter, which I received October 07, 2010. Unfortunately, I understand that, when Letting Agency 2 took over the account from Letting Agency 1, it signed a new tenancy agreement with Mr and Miss XXXX.
As I was not a part of this second agreement, it is my legal understanding that this action discharged my responsibility. From looking at various online resources, I would like to draw your attention to the below information:
Note, the guarantee will be automatically canceled if the tenant signs a new tenancy agreement with the tenant, or if the terms of the existing tenancy agreement are changed
http://www.propertyinvestmentproject.co.uk/blog/tenant-guarantor-form/
Landlords should also bear in mind that any variation in the agreement, including the fixed-term coming to an end and tenancy renewal, if done without the guarantor's consent, will discharge the guarantor's liability.
http://www.tenantverify.co.uk/guarantors.htm
Note however that the guarantee will be automatically canceled if you sign a new tenancy agreement with the tenant, or if the terms of the existing tenancy agreement are changed – for example if the rent is increased. In both of these circumstances you will need the guarantor to sign a new guarantee deed.
http://www.landlordlawblog.co.uk/2010/05/08/tenancy-agreements-31-days-of-tips-day-8-guarantees/
As you can see, it appears that the new tenancy agreement you signed with Mr and Miss XXXX on the XX/XX/XXXX will therefore have negated the initial tenancy agreement that I signed.
Please confirm this at by recorded delivery at your earliest convenience. I must also request that you do not pass my information onto your debt collection agency while I dispute liability.
Yours faithfully,
XXXX