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Money Moral Dilemma: Should we be guarantor for our relative?
Former_MSE_Nick
Posts: 463 Forumite
This week's MoneySaver who wants advice asks...
A single relative of ours is starting a degree as a mature student, and has asked if we will act as guarantor for their rental property (since they'll no longer be employed). However we need to prioritise our own kids who will be starting university soon and asking the same of us.
A single relative of ours is starting a degree as a mature student, and has asked if we will act as guarantor for their rental property (since they'll no longer be employed). However we need to prioritise our own kids who will be starting university soon and asking the same of us.
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Comments
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More info needed: How close are you to this relative? If studying as a mature student having given up employment, do they have sufficient savings to pay say 6 months rent up front? If not, how were they planning to support themselves? Is there another family member who could help? Will your own children not spend the first year in halls, where a guarantor is not needed? This is a tricky one, much depends on the nuances of the situation which are not obvious from the brief post.0
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Unless you have multiple thousands to throw away willy nilly if the relative (or his flatmates) fail to pay the rent, then the answer is a big fat....
NO
You gotta be some special kinda crazy to be a guarantor, UNLESS you can comfortably afford to pay the person's rent/loan repayments/finance repayments and so on and so on, if they fail to cough up!
Nothing on earth would make me be a guarantor for anyone. Not ever.
Some people think it means simply being a reference. It doesn't. You are basically agreeing to pay someone's debt/finance/rent if they don't pay it, and if you don't pay it/can't pay it, the men from 'can't pay, we'll take it away,' will be a knockin' at your door!
Oh and you will also have black marks on your credit record.
As I said, nothing on earth would make me be a guarantor for anyone. Not EVER.You didn't, did you? :rotfl::rotfl:0 -
For my own children, yes... for anyone else, no.the men from 'can't pay, we'll take it away,' will be a knockin' at your door!
And you don't have to let them in
.. only people who own the property have right of access and the police with a warrant! LB moment 10/06 Debt Free date 6/6/14Hope to be debt free until the day I dieMortgage-free Wannabee (05/08/30)6/6/14 £72,454.65 (5.65% int.)08/12/2023 £33602.00 (4.81% int.)0 -
And you don't have to let them in .. only people who own the property have right of access and the police with a warrant!
Hmmmmm, I think you may be slightly wrong there ... :cool:
On the programme 'can't pay take it away,' they are court appointed bailiffs, and have court orders and can indeed enter the property.
However, in many cases they cannot forcibly enter (ie; they can't break the door down...) But once you have opened the door, their foot will wedge it open, and then you can't stop them taking your stuff, as they will have a court warrant to do so. They will often sneak around the house to see if they can find a back or side door open too, or even a window.
There are a few exceptions where they can use force to enter too.
There's more about it here...
https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/bailiffs/letting-a-bailiff-into-your-home/can-a-bailiff-force-entry-into-your-home/You didn't, did you? :rotfl::rotfl:0 -
As a guarantor you would be responsible for all aspects of the tenancy usually, so if rent is not paid the lettings agency would look to you to cough up, if damage is caused you could be held responsible too, basically you become a tenant despite not living in the property. And yes it could end up with you in court too! I wouldn't do it as I think it could ruin the personal relationship I had with the tenant and give me constant stress.0
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I am currently guarantor for two of my children at university, that has always made me nervous, so not sure I would want to do it again for a mature relative. I'm sure there must be something else they can do.0
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And remember if it is a shared property it is not just the relatives share of the rent they can chase you for but the other people living at the property. So it is a NO from me too.0
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The fact they are a mature student also rings alarm bells with me, are they a perpetual student and likely to run into financial difficulties?
The mature student can always rent a room or otherwise get some sort of accommodation that doesnt need a guarantor, so in essence they are asking you to put yourself at financial risk so they can get a nicer place than otherwise. Or as said if it's a shared house you are letting yourself in for everyone else's financial difficulties as well.
So, no is my answer also.
If you are looking for a reason to avoid a family rift, then I'd decline stating the need to guarantee your children as meaning it would be too many liabilities to take on.0 -
As a student landlord, I have had a number of students who give up their course, have mental health issues or just move elsewhere eg because they don't get on with other housemates. Few of them realise that they remain committed to the contract for the full term, typically, 10 or 12 months. In my case, if I can relet the room, I don't charge them when they leave but this is very difficult to do sometimes. I had one student who moved out after 2 weeks as he was homesick - his rent was therefore due for the next 9 1/2 months. Fortunately, so early in the academic year I could relet his room. Another 25-year-old tenant (not a student) fell out with her boyfriend and went home - she made no effort to try and relet the room (even when asked and helped) and her room couldn't be relet so her grandmother ended up paying her rent for the remaining 10 months (although her housemates were still saddled with only 2 of them sharing the bills). The rent will be expensive and you would be guaranteeing to pay it ALL - and can be taken to court if you refuse. Young people sometimes think that the deposit covers leaving but it most certainly does not. Unless you know this person very well indeed, I'd think twice about guaranteeing his rent!0
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