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Guarantor Problem...
horshamtim
Posted: 09 July 2014 21:21:55(UTC)
#11

Joined: 05/05/2012(UTC)
Posts: 13

Was thanked: 23 time(s) in 10 post(s)
Some of the comments so far are a bit unhelpful.

Your liability depends more on what you signed as a guarantor rather than your brother's tenancy agreement. Such guarantees vary significantly so no one can give you proper advice without seeing what you have signed. At the wrong end of the spectrum you may have an open-ended liability for all the losses incurred by the landlord, not just the unpaid rent, and not just limited to any initial tenancy.

The landlord potentially can sue either of you, but cannot reclaim the money owed twice.

Assuming your brother's tenancy is an assured shorthold, being two months or more behind on the rent enables the landlord to seek possession on one of the mandatory grounds. Your brother appears not to have a defence against this but may be able to make a counter-claim - it will be up to him to then to prove that the property was uninhabitable. .This can be a high risk option.

Seek advice from the CAB or a specialist housing organisation like Shelter. If you go to even a provincial solicitor expect to pay £200 an hour or more plus VAT . Check before doing so that they have actual experience of dealing with Rent Act and Housing Act cases, otherwise it may be money wasted.

If the landlord includes you in any county court action, you should attend, but you anyway have an interest in the outcome of any action against your brother. Any court hearing is likely to be in the area where the property is, so you will have to allow for the costs of going there as well. The law on these issues is essentially the same in both England and Wales.
2 users thanked horshamtim for this post.
Kenpen2 on 10/07/2014(UTC), Flying blind. on 12/07/2014(UTC)
Mediate
Posted: 10 July 2014 03:09:00(UTC)
#12

Joined: 06/01/2012(UTC)
Posts: 1

Thanks: 4 times
Was thanked: 1 time(s) in 1 post(s)
A few points:

You say the property was 'unlivable' - but did your brother actually stop living there - i.e. did he move out - with all his stuff - and incur accommodation costs elsewhere? Was it wholly unlivable or just partly so?

Did your brother incur any other provable costs as a direct consequence of the 'unlivable' condition?

Got all the receipts to prove the costs incurred?

See http://www.housing-ombudsman.org.uk/ and read their factsheets. They can't help if the landlord is not part of their scheme - but you may glean some info - and their phone number.

Avoid courts and lawyers if you can. They eat well - so don't come cheap! You and your brother are at risk of having all costs awarded against you. See if the landlord will agree to and accept as binding some cheap form of 'alternative dispute resolution' - e.g. an arbitrator. Maybe the ombudsman or cab can suggest someone trained in dispute resolution.

Does your brother have an 'alternative agenda'? (E.G. 'All landlords are nasty, I'll make this one pay.') Press your brother to settle fairly, quickly and without rancour - and be seen to do so - and have documentation to show this. Remind him that his future landlords will take up references and, if he gets a bad one, he might just need to show that he was more than reasonable in this dispute.

Try talking to the landlord sweetly and reasonably. Remember your objective is to get this dispute resolved.

'Ring-fence' the problem - i.e. make sure all amounts that are not in dispute have been paid or at least payment offered.

Good luck!
1 user thanked Mediate for this post.
D G Stonebanks on 13/07/2014(UTC)
HUFC
Posted: 10 July 2014 08:35:05(UTC)
#13

Joined: 20/05/2010(UTC)
Posts: 77

Can I feel safe in this promise? - Yes if your brother honours his word to you.

The landlord has already called me to ask if Im going to pay and I said no I support my brothers position.. can I expect harassment? letters? - Almost certainly if it's not resolved

Will my credit rating be effected for being involved at all? - Depending upon the nature of the rental agreement, the landlord may first have to obain a County Court Judgement before your credit is likely to be affected. But in those circumstances you will have the opportunity to put your own case to the court before judgement is awarded

chris gurney
Posted: 11 July 2014 15:33:40(UTC)
#14

Joined: 17/09/2012(UTC)
Posts: 2

Was thanked: 2 time(s) in 1 post(s)
I suggest that you refer to the tenancy agreement which will almost certainly require the rent to be paid regardless. A far better position here would be to pay the rent and then pursue the landlord under his Landlord and tenant act repairing and maintaining obligations. The net award by the court should be equal whether your brother has to pay the landlord or visa-versa however it will be the landlord as opposed to your brother with the court order hanging over him and on his file.

It is also possible that the landlord may relent and pay up if faced with a court hearing against him whereas at the present time he is the one making the claim so in the worst case he might get nothing but has nothing to lose.

Good Luck!

2 users thanked chris gurney for this post.
Clive B on 11/07/2014(UTC), Flying blind. on 12/07/2014(UTC)
Law Man
Posted: 13 July 2014 08:53:18(UTC)
#15

Joined: 29/04/2014(UTC)
Posts: 675

1. Read the terms of the guarantee.

2. Subject to the terms, probably you will have to pay up when (1) a sum has fallen due, and (2) the landlord demands payment by you. Interest on the sum may run from that point.

3. It is possible but unlikely that the landlord files defaults with a CRA. A CCJ not paid within a given period will be registered.

4. Practical: do you trust brother / tenant? Have the likely amount you may have to pay ready to pay to the landlord.

5. Court case: acceptable if it is "small claims" and you are not liable for landlord's costs if you lose. Of course attend any hearing.



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