Consued About Joint-Guarentors :S HELP!

[bcfc-1989]

I seriously need help. Im getting worried.

I agreed to move into a flat with a friend during Uni next year, we signed contracts agreeing to split the rent a few months ago. We both paid our deposit on the spot but we both need Guarentors and First Months Rents, which I have done. Earlier today I rang the Estate Agents found out he has not paid the first months rent or signed the Guarentor Agreements. Even though he said he posted the Guarentor letters last week!.. Im scared hes going to pull out.

If he pulls owt does that mean Me and/or My Guarentor HAVE to pay ALL the rent?

Because I simply cannot afford it....

Or does the contract get cancelled?

[garethcthomas]

It's not clear from your post whether you and your friend have signed an AST (the tenancy contract) or have actually moved in to the property and have started paying rent, but I will assume you have.

To make my thourghts clearer, let's call you A and your friend B. Your guarantor is called X and your friend's guarantor is called Y. So, depending on the wording of the guarantee undertaking signed by the guarantors involved, either X guarantees A AND B's rent due or X just guarantees A's SHARE of the rent. Likewise Y guarantees A AND B's rent due or Y just guarantees A's SHARE of the rent.

So if the rent doesn't get paid, the landlord/agent will come after A and B in the first instance, then X but not Y (as Y didn't sign the guarantee form). As to how much X is liable for depends on the situation noted in my second paragraph above, i.e. either the full rent or a share of the rent.

The contract will not just get cancelled if you are still in the fixed term period agreed. If you need to get out of it, you either help find replacement tenants or you agree to pay the agency fees involved in finding new tenants. You will be liable to pay rent up to the day before the new tenants move in and begin their rental contract, even if you've moved out weeks or months beforehand.

Technically you are liable to pay rent for the remaining unused period of a fixed term, but the landlord must mitigate his losses/your costs by trying to find new tenants as soon as possible. Once the new tenants are in, your liability is (usually) at an end.