Bond vs Bank Guarantee?
- Thread starter JIT
- Start date
With the bank guarantee then, if the rent is not paid, does the landlord just go to the bank and get the unpaid money's from them with a signature?
Bond wound seem better for the landlord I think as they would have the cash upfront in a bank account of theirs that is easier to access?
But a bank guarantee may be better for the tenant as there is less of a hit on their immediate cashflow?
if in breech of contract, the landlord/landlords solicitor will present a letter of demand with the original bank guarantee to the bank.
the bank will no questions asked make payment of this bank guarantee in cash on the spot.
the bank will then recover the cost from you. More than likely you would have used cash or property as security for the bank guarantee.
the bank will no questions asked make payment of this bank guarantee in cash on the spot.
the bank will then recover the cost from you. More than likely you would have used cash or property as security for the bank guarantee.
why not 6 month bank guarantee or 5 months cash bond payable directly to the Landlord? May help you with your cash flow problems
(bond paid back on tenant vacating assuming no breach or adjusted at settlement should landlord sell during currency of the lease).
Exercising on a bank guarantee for a client today actually- it is just as Nommy says.
(bond paid back on tenant vacating assuming no breach or adjusted at settlement should landlord sell during currency of the lease).
Exercising on a bank guarantee for a client today actually- it is just as Nommy says.
Great, thanks Nommy.
no problems Jit.
If you have the cash for the bond, imo it is safer to have it in an account in your name (held in a term deposit earning interest) securing the bank guarantee than having it with the landlord/landlords agent. The term deposit interest should cover all bank fees associated with having the facility.
Sounds fine, though I'm going to be the landlord in this instance!
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