Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Regedit
    • By Regedit 19th Mar 17, 11:29 PM
    • 4Posts
    • 0Thanks
    Regedit
    Releasing Rent Guarantor "between jobs"
    • #1
    • 19th Mar 17, 11:29 PM
    Releasing Rent Guarantor "between jobs" 19th Mar 17 at 11:29 PM
    I started renting a flat from a letting agency just over 3 years ago and at the time, although settled 1-2 years earlier, an IVA still showed on my credit file, therefore my brother kindly signed a guarantor's agreement for my rent, which was "addressed" to the flat owner but handled by the agency.

    As a courtesy, I now wish to release him from his guarantee, as I now have a clean and pretty good credit file/rating. The only worry I have though is that I was recently made redundant from my job of 10 years and received a substantial payout, am taking a small break for now but I am concerned that if I ask the letting agency for the guarantee to be released, they may ask me to complete a full statement of means form, which may also ask if I am currently in full employment, and my salary? Although I have plenty of funds to last me some time, I can't help feeling the agency will take a more "computer says no" view and I end up shooting myself in the foot.

    Are they likely to ask for this additional info as a matter of course, and indeed can they, if the only grounds for needing a guarantee previously was my adverse credit rating, rather than my salary? I am hoping if I send an email (or a letter?) consenting to them running another credit check, this will be sufficient and they can simply contact my brother to release the guarantee?

    Many thanks in advance for any advice!
Page 1
    • stator
    • By stator 20th Mar 17, 12:13 AM
    • 5,891 Posts
    • 3,871 Thanks
    stator
    • #2
    • 20th Mar 17, 12:13 AM
    • #2
    • 20th Mar 17, 12:13 AM
    Well I don't believe there are any rules at all.
    You can ask them to release the guarantor and they can say no. They can ask any questions they want and you can refuse to answer them all.
    If you've been paying the rent ok for over 3 years the landlord may be fine with it. If they are nasty then they probably won't want to release the guarantor at all because there is no advantage to them if they do.
    Changing the world, one sarcastic comment at a time.
    • Regedit
    • By Regedit 20th Mar 17, 12:40 AM
    • 4 Posts
    • 0 Thanks
    Regedit
    • #3
    • 20th Mar 17, 12:40 AM
    • #3
    • 20th Mar 17, 12:40 AM
    Thanks, appreciate the feedback. My rent has always been 100% paid and on time, I enjoy a good relationship with the agency as well as the landlord, as I've met him on several occasions when things have needed doing. I guess it's still pot luck though, I can ask them to release the gurantee and if they send me a form requesting the other info I guess I could ignore until I am in new work, or suggest that the additional info isn't pertinent, though I also don't want to raise undue "suspicion", if you can call it that. I think the landlord, who has final say, would probably be OK with my situation anyway but that's not something I want to ideally test.
    • Cakeguts
    • By Cakeguts 20th Mar 17, 1:29 AM
    • 3,006 Posts
    • 4,169 Thanks
    Cakeguts
    • #4
    • 20th Mar 17, 1:29 AM
    • #4
    • 20th Mar 17, 1:29 AM
    As you are not going to need the guarantor it won't make any difference.
    • Regedit
    • By Regedit 20th Mar 17, 1:45 AM
    • 4 Posts
    • 0 Thanks
    Regedit
    • #5
    • 20th Mar 17, 1:45 AM
    • #5
    • 20th Mar 17, 1:45 AM
    Not sure I agree there, as I said it's a courtesy (it cropped up recently in conversation) and as with all guarantees, company guarantees, securities over properties etc. they are usually released when no longer required. It would be a little flippant for me to not say anything and let it run indefinitely.
    • deannatrois
    • By deannatrois 20th Mar 17, 1:46 AM
    • 4,842 Posts
    • 6,789 Thanks
    deannatrois
    • #6
    • 20th Mar 17, 1:46 AM
    • #6
    • 20th Mar 17, 1:46 AM
    As you have never needed your guarantor to pay out and don't anticipate him having to.., not sure why you need to mess with the situation now when you have just lost your job and can't prove an income? Timing doesn't seem to be too good.., and there's just no need.

    I am an eternal pessimist.., so while you feel able to take a break.., how sure are you of being able to get another job when needed?
    • Regedit
    • By Regedit 20th Mar 17, 1:51 AM
    • 4 Posts
    • 0 Thanks
    Regedit
    • #7
    • 20th Mar 17, 1:51 AM
    • #7
    • 20th Mar 17, 1:51 AM
    If that was a risk then I wouldn't be taking a break =)

    Anyway this is drifting a little ways from my original query, thanks for the responses all the same.
    • G_M
    • By G_M 20th Mar 17, 5:57 AM
    • 41,883 Posts
    • 48,470 Thanks
    G_M
    • #8
    • 20th Mar 17, 5:57 AM
    • #8
    • 20th Mar 17, 5:57 AM
    Anyway this is drifting a little ways from my original query, thanks for the responses all the same.
    Originally posted by Regedit
    Your original queries were:
    ..... I am concerned that if I ask the letting agency for the guarantee to be released, they may ask me to complete a full statement of means form, which may also ask if I am currently in full employment, and my salary?
    Almost certainly, but you'll only find out by either
    a) making a formal request, or
    b) having an informal chat and asking
    hypothetically (perhaps the LL rather than the agency)

    Although I have plenty of funds to last me some time, I can't help feeling the agency will take a more "computer says no" view and I end up shooting myself in the foot.
    The agency is employed by the LL partly to manage the rent and property, and partly to advise and protect his interests. So they will err on the side of caution in case things go wrong and the LL blames them

    Are they likely to ask for this additional info as a matter of course,
    Yes, likely, though it's not guaranteed
    and indeed can they, if the only grounds for needing a guarantee previously was my adverse credit rating, rather than my salary?
    Yes of course
    I am hoping if I send an email (or a letter?) consenting to them running another credit check, this will be sufficient and they can simply contact my brother to release the guarantee?
    This is unlikely to alter their approach to a formal request to remove the guarantee agreement. If you really wish to pursue this, and minimise the risk of full vetting, speak to the LL or agent.

    But why bother? The only reason I can see for wanting to remove your brother from the obligations under the guarantee agreement, is to protect him from any claim by the LL /agent.

    1) if you continue to pay the rent, and cause no damage, no claim will be made against your brother, so stirring up the matter of the guarantee makes no difference to him.

    2) if you anticipate a claim might be made against your brother (for rent arrears or damage) then that will simply prove that the LL would be sensible to maintain the guarantee agreement

    So the real question is - do you trust yourself to maintain your tenancy obligations, or to rectify any failings under the tenancy yourself, or not?
    • jbainbridge
    • By jbainbridge 20th Mar 17, 6:26 AM
    • 1,729 Posts
    • 1,123 Thanks
    jbainbridge
    • #9
    • 20th Mar 17, 6:26 AM
    • #9
    • 20th Mar 17, 6:26 AM
    It's surely not in the interest of the landlord to end the agreement, especially as you currently don't have a job. I suggest you assure your brother that you will keep paying the ... so long as you do there's no problem.
    • anselld
    • By anselld 20th Mar 17, 7:15 AM
    • 5,388 Posts
    • 4,943 Thanks
    anselld
    The time to do this is when you think you will be able to pass full referencing on your own. Even then they may say no.
    Expect to pay the full referencing fee if they say yes.
    • NeilCr
    • By NeilCr 20th Mar 17, 7:57 AM
    • 1,069 Posts
    • 1,176 Thanks
    NeilCr
    Had a client a while back who fell out with her guarantor. The guarantor wanted to cease the agreement because of this. I didn't see the final paperwork as client returned with it and saw someone else

    However the outcome was that the guarantor was allowed to give a month's notice - but the client had to find another guarantor within that period or face eviction

    No idea if it's relevant in your case Regedit but might be worth checking what you have signed - if you haven't already
    • AnotherJoe
    • By AnotherJoe 20th Mar 17, 8:16 AM
    • 7,562 Posts
    • 8,166 Thanks
    AnotherJoe
    Thanks, appreciate the feedback. My rent has always been 100% paid and on time, I enjoy a good relationship with the agency as well as the landlord, as I've met him on several occasions when things have needed doing. I guess it's still pot luck though, I can ask them to release the gurantee and if they send me a form requesting the other info I guess I could ignore until I am in new work.
    Originally posted by Regedit
    And of course, until you do return it, there's no chance they will release it, so that doesn't get you anywhere.

    I think you've missed looking at it from the POV of the agent / landlord, all your comments aare about your and brothers POV. The most likely time someone will ask to be released is when either it's not needed or they are just about to need it. Until you satisfy them that you are in the former situation, and not being employed hardly fits that !!! , they would be crazy to agree
    • eddddy
    • By eddddy 20th Mar 17, 8:38 AM
    • 5,408 Posts
    • 5,061 Thanks
    eddddy
    It's a bit difficult to see the logic behind your request.

    I would expect the LL's response to be "Why do you want to release your guarantor - do you envisage defaulting on your rent?".

    And if your answer is "No".

    So the LL would say "Then why do you want to release your guarantor? If you pay your rent, nothing happens to the guarantor."
    • davidmcn
    • By davidmcn 20th Mar 17, 9:07 AM
    • 6,068 Posts
    • 5,819 Thanks
    davidmcn
    I can't see anything in it for the landlord, so why would they bother?

    I presume there's nothing in the guarantee which obliges them to do this (quite common in guarantees for commercial rent e.g. you can be released once the tenant can produce 3 years of accounts with enough turnover/profit).
    • pmlindyloo
    • By pmlindyloo 20th Mar 17, 10:30 AM
    • 10,827 Posts
    • 12,690 Thanks
    pmlindyloo
    What does your brother want?

    Has he looked at his guarantor agreement to find out if he can do this himself? There may be clauses in the agreement that allow him to end his being a guarantor.

    Otherwise if he cannot get out of his agreement then you can ask for him to be released but it is unlikely that they would agree.

    However, you could pay the LL 6 months rent up front (or whatever they would accept) to 'sweeten things'. By that time you would have a new job?

    It is also worth offering sight of your savings to reassure them that you have sufficient funds.
    • stator
    • By stator 20th Mar 17, 11:25 AM
    • 5,891 Posts
    • 3,871 Thanks
    stator
    I can easily see why you would want to do it, it's bound to be a bit embarassing and if I were the guarantor I would always worry a little bit about it. So I don't see anything suspicious about wanting to get rid of it.
    At the end of the day it will be up to the landlord and whether they want to risk losing a good tenant or not.
    Changing the world, one sarcastic comment at a time.
    • theartfullodger
    • By theartfullodger 20th Mar 17, 11:50 AM
    • 9,041 Posts
    • 11,959 Thanks
    theartfullodger
    Tessa wrote a recent very thorough article on guarantors and how they perhaps unenforceable after end of fixed term. See
    http://www.landlordlawblog.co.uk/2013/01/08/is-my-guarantor-still-liable-after-the-fixed-term/

    .....if you stay on after the end of the fixed term of a tenancy, it will automatically run on as a ‘periodic’ tenancy under the terms of the Housing Act 1988. It is just the fixed term which has expired not the tenancy.

    Whether your guarantor is still liable however will depend on the terms of the guarantee deed he signed. it is impossible to say without seeing it.......
    Last edited by theartfullodger; 20-03-2017 at 11:57 AM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

929Posts Today

6,824Users online

Martin's Twitter