By: Terry Johansson

Terry Johansson — Thu, 19 Mar 2015 15:23:40 +0000

Guarantor remain liable after the tenant’s death to protect the landlord and a re-letting can cause the liability to cease.
Any would be tenant needs to negotiate at the beginning whether the lease continues after death.

By: Lisa

Lisa — Mon, 09 Mar 2015 07:49:35 +0000

Most guarantor agemerents I have seen contain a clause stating that the guarantor’s liability specifically does not end with the death of the tenant.A tenancy agreement is a contract just like a mortgage or a credit card and contracts do not end on death of the person who took it out. As Tessa has mentioned there are certain rights for 3rd parties to inherit tenancies but if the tenancy ended automatically on the death of the named tenant then this wouldn’t be possible and people could be forced from their homes.It may seem unfair in the circumstance where no one wants to inherit the tenancy, but is it fair that the landlord should be out of pocket? As an example, for that one tenancy the landlord may have paid 1% of the property value in transfer fees on the sublet and letting agency fees, as well as the costs of an EPC, electrical safety inspection, deposit registration, inventory/check in etc. They were expecting to have the property income producing for a set period of time to off-set those costs and then hopefully get a return.The best bet is to try and negotiate. In these situations most landlords will agree to release people form their obligations once the property is re-let, although the estate/guarantor may still be liable for any additonal costs relating to the re-let.

Comments on: Should a lawyer prepare a Will, or can a DIY kit be used?

By: Terry Johansson

By: Lisa