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Guarantor for Renting
20 Answers
I have been asked to be guarantor for a family member who wants to rent a flat .
The family memeber is not due to start permanent work untill a couple of months time , so technically is unemployed .
Therefore the letting agents require a gurantor , before they can rent the flat .
If the family member did not make the rental payments - - what would be my liabilities to the letting agents ?
- What could they legally do ?
- What are the cons .
Thanks
The family memeber is not due to start permanent work untill a couple of months time , so technically is unemployed .
Therefore the letting agents require a gurantor , before they can rent the flat .
If the family member did not make the rental payments - - what would be my liabilities to the letting agents ?
- What could they legally do ?
- What are the cons .
Thanks
Answers
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By being a guarantor you are basically agreeing to pay if they don't.
Bear in mind the term of the tenancy which you cold be liable to pay for eg initial 6 month assured shorthold tenancy, so if they never pay you may have to pay for the whole 6 months whether they are in the flat or not.
I'd also want some kind of control if arrears come up that you can give notice for the family member to get out to stop accruing further debts you may have to pay.
The agents could take you to court to get a judgment for you to pay and, if not forthcoming, take enforcement action like having money taken from your wages, a charging order registered against your property, bailiffs sent in etc...
It would damage your credit record as well if a CCJ was made against you.
If you did go guarantor I'd want it in place that I was advised as soon as any payment was missed or other problem so that arrears can't accrue without your knowledge and potential penalties and interest.
Check into whether being guarantor covers other potential expenses as well such as damage as you could be liable for these as well over any deposit paid.
Bear in mind the term of the tenancy which you cold be liable to pay for eg initial 6 month assured shorthold tenancy, so if they never pay you may have to pay for the whole 6 months whether they are in the flat or not.
I'd also want some kind of control if arrears come up that you can give notice for the family member to get out to stop accruing further debts you may have to pay.
The agents could take you to court to get a judgment for you to pay and, if not forthcoming, take enforcement action like having money taken from your wages, a charging order registered against your property, bailiffs sent in etc...
It would damage your credit record as well if a CCJ was made against you.
If you did go guarantor I'd want it in place that I was advised as soon as any payment was missed or other problem so that arrears can't accrue without your knowledge and potential penalties and interest.
Check into whether being guarantor covers other potential expenses as well such as damage as you could be liable for these as well over any deposit paid.
there are thousands of cons - i would say DONT DO IT! ( i will list some)
1) do you like your family member - if so NEVER mix that with money - if it ends in tears you will have lost a relationship
2) even if the contract is only for six months, if the person extends that you will still be liable until they move
3) if they dont or cant pay, you will have to including being taken to court, getting ccj's etc. It will be like you you live there, but with none of the benefits oof actually living there
Seriously, if you arent able to tell them you dont want to, just tell them you dont have a good credit rating yourself
1) do you like your family member - if so NEVER mix that with money - if it ends in tears you will have lost a relationship
2) even if the contract is only for six months, if the person extends that you will still be liable until they move
3) if they dont or cant pay, you will have to including being taken to court, getting ccj's etc. It will be like you you live there, but with none of the benefits oof actually living there
Seriously, if you arent able to tell them you dont want to, just tell them you dont have a good credit rating yourself
When our son was in same position we agreed to do it but insisted to the agents that we would only act as guarantors for the first 6 months as by then he would have proved his reliabilty. He never let us down. He now has lease in own name and has always paid his rent. But,,,,,only you know your own circumstances and how you think she will cope.
-- answer removed --
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Thanks naomicorlett
They need me to fill in a form titled 'MARAS' - which includes all sorts of details , including bank details , wages etc .
Would i need to write on this form that i am only prepared to be a gurantor for a specific period of time
How did you do it ?
Also you state that your son ' now has lease in own name ....' - does it mean that the lease would be in my name initially ?
They need me to fill in a form titled 'MARAS' - which includes all sorts of details , including bank details , wages etc .
Would i need to write on this form that i am only prepared to be a gurantor for a specific period of time
How did you do it ?
Also you state that your son ' now has lease in own name ....' - does it mean that the lease would be in my name initially ?
-- answer removed --
Thanks naomicorlett
They need me to fill in a form titled 'MARAS' - which includes all sorts of details , including bank details , wages etc .
Would i need to write on this form that i am only prepared to be a gurantor for a specific period of time
How did you do it ?
Also you state that your son ' now has lease in own name ....' - does it mean that the lease would be in my name initially ?
They need me to fill in a form titled 'MARAS' - which includes all sorts of details , including bank details , wages etc .
Would i need to write on this form that i am only prepared to be a gurantor for a specific period of time
How did you do it ?
Also you state that your son ' now has lease in own name ....' - does it mean that the lease would be in my name initially ?
-- answer removed --
The lease was always in his name with us as guarantors but he has since changed flats and as he had a good background of payments did not need us as guarantors that time. The agents needed a stern talking to before they would accept the fact that we would only act for the initial 6 months lease. Remember that it a renter's market and stand firm.
That's a hard one! I'd be the first to advise people not to but not straightforward when it's your child.
When I got my first flat on my own, because I hadn't been in my new job (hence the new flat) for 6 months I had to ask my dad to go guarantor. I hated doing it as I was about 27 and a just qualified solicitor.
Completely out of the blue I lost my job about 5 months later and was out of work for about 3 months. I managed to get by but it could have fallen to my dad to pay if I couldn't have. Luckily it didn't come to that but I had some savings etc... to help me along.
Awful as it sounds, there are so many possibilities, what about damage which is her fault and not claimable on insurance like a flood caused by a tap left on or fire by leaving a lit cigarette (not saying she smokes, just trying to give you an idea).
When I got my first flat on my own, because I hadn't been in my new job (hence the new flat) for 6 months I had to ask my dad to go guarantor. I hated doing it as I was about 27 and a just qualified solicitor.
Completely out of the blue I lost my job about 5 months later and was out of work for about 3 months. I managed to get by but it could have fallen to my dad to pay if I couldn't have. Luckily it didn't come to that but I had some savings etc... to help me along.
Awful as it sounds, there are so many possibilities, what about damage which is her fault and not claimable on insurance like a flood caused by a tap left on or fire by leaving a lit cigarette (not saying she smokes, just trying to give you an idea).
oh sorry , my answer did not get posted. We needed to act as guarantors for his first flat but when he moved he had built up a payment history and was able to do without us. The agents needed a firm talking to before they would accept the fact that we were only willing to stand as guarantors for 6 months; we also made it quite clear that if he was at all late with his rent we would expect to be informed straight away.I understand that it's a renter's market so stand firm.
You'd be better off offering a larger deposit rather than standing guarantor but it all depends on how reliable you think your daughter is. I guess you'll find that out once she starts renting.
I, as a landlord, wouldnt accept a guarantor who tried to limit their responsibility to a set length of time, say a few months. I'm not sure you can do legally anyway without drawing up a new AST. What's the benefit to the landlord of a restricted guarantor?
I, as a landlord, wouldnt accept a guarantor who tried to limit their responsibility to a set length of time, say a few months. I'm not sure you can do legally anyway without drawing up a new AST. What's the benefit to the landlord of a restricted guarantor?
Run a mile mate. Look even if your daughter is honourable for the whole time, letting agents can be absolute barstewards. They'll keep the deposit when she goes anyway but they'll also trump up a load of other charges and chase you for them. I wouldn't stand guarantor to a letting agent for mother Therasa, However what you can to is refuse to be guarentor but offer them 3 months rent in advance or something then your daughter can pay you.
2 sides to the coin:
1) Don't do it - usually in will not be a guarantee that you sign but a guarantee and indemnity - this is far more powerful - it essentially means that you indemnify the landlord against all costs - so if your daughter was to have a wild party and the place got truly trashed, you would not only be responsible for the rent due, but also the repairs to the house.
2) Do it - if you can't make a judgement on your daughter and her behaviour, how is a landlord supposed to. If you think she is likely to not be able to pay or trash the place then obviously don't enter into it. But if she is honourable and sensible, then do it.
1) Don't do it - usually in will not be a guarantee that you sign but a guarantee and indemnity - this is far more powerful - it essentially means that you indemnify the landlord against all costs - so if your daughter was to have a wild party and the place got truly trashed, you would not only be responsible for the rent due, but also the repairs to the house.
2) Do it - if you can't make a judgement on your daughter and her behaviour, how is a landlord supposed to. If you think she is likely to not be able to pay or trash the place then obviously don't enter into it. But if she is honourable and sensible, then do it.
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