risks of being a guarantor

slopemaster

FATBALLZ wrote: »

it seems a nonsense to me to be able to sign up to an unlimited liability for the rest of your life,

agreed

FATBALLZ wrote: »

the law is usually quite sensible ....

hmmm...
The little bit of contract law I studied, it amazed me how not-sensible it was!

DVardysShadow

theartfullodger wrote: »

- don't think you can limit a guarantee like that, & if you did any sensible LL/Agent would ask themselves why you were doing it, then rent to someone else..

I see no reason why you could not limit a guarantee. Although the consequences may be as you describe.

Personally, I think it would be a good thing if then guarantee was limited to say 6 months rent. It menas that the LL would ahve to take some responsibility and also that the savvy guarantors [who are probably the better ones] would be less reluctant to comeforward.

diable

Is she fit?

boliston

The only time i would consider being a guarantor is if I was NOT a property owner and had NO assets of any value.

Basically if the tenant defaults on their rent they will come after you for effectively an unlimited amount, and if you don't pay they will go after you ASSETS.

At the end of the day being a guarantor has the ability to make YOU homeless.

N79

1. Guarantees are executed in the form of a deed (with all the complications that implies ie Witnesses, prior sight of the deed etc). They are not a contract.

2. There is no legal reason why you can not limit a guarantee to either a fixed period (or debt arising during a fixed period) of time or to a total amount. However, from a LL's point of view this is even more complicated and riskier so I suspect that without very good negotiations in reality it is all or nothing!