Renting Guarantor

Mk14:37

A friend of mine is moving to London and has asked if I would stand as guarantor - again.

I have previously done this for her on two occasions while she has been at university in Hereford, but things are somewhat different now, not least as DW and I have a baby due in a few weeks. I don't doubt my friend or expect that I would ever have to pay anything, but as my wife will be going from a full salary to SMP, I simply wouldn't be able to afford the financial exposure in that worst case scenario.

I feel a little guilty about this but family has to come first. I explained this to my friend and asked her to try to find someone else as guarantor, though if there truly was no-one else then I would still try to support her.

However, DW thinks that it is unusual for landlords to request a guarantor. Does anyone have more familiarity of London rentals and can shine a light on this?

Also, can anybody advise of what would happen if a guarantor were required but noone was prepared to do it? (She is non-UK so no family to ask).

Annisele

If you can't afford it, there's a good chance you wouldn't be accepted as a guarantor anyway - so no need to feel even a little bit guilty.

It's not that unusual for LLs to want a guarantor. I rent in London, and I don't have a guarantor - but then I've got a 10 year track record of paying my rent on time, and could cough up employment/previous LL references etc. If your friend is starting a new job and is only just out of university, many LLs (not all) will want a guarantor - especially if she's not from the UK, as the perception is that it would be easier for her to just disappear back to her home country without paying. It's difficult enough to enforce a judgement against somebody in the UK, but enforcing against somebody with no assets and outside the UK is near impossible.

If a LL requires a guarantor and she can't find one, then it's simple: she can't rent that LL's property.

Alternatives can be paying six months rent upfront - is that an option for her?

Credit_Jake

What is a DW? Is there a place on here explaining all these acronyms? I'm only 23 but feel but of touch lol. Sorry to hijack.

janeawej

Its a difficult situation but I think due to your new financial status you really cant afford to do this for your friend, Im sure she will understand, as mentioned before would she be able to pay several months rent in advance? Or can she discuss with the landlord or agent another way to get round this, also as youve stood guarantor for her before she has obviously rented and paid rent on time before, could she ask for a reference from previous landlords?

zzzLazyDaisy

DW = Dear Wife

tbh it's not unusual for LL's to want a guarantor, especially in the circumstances you describe, and with London rents being higher than some other parts of the country, it is probably more usual.

However, once you agree to be guarantor you are stuck with it. You can't later change your mind if your circumstances change (at least not without the LL's permission and in most cases it is unlikely that will be forthcoming). Also as someone else has said, if you can't afford to cough up if things go wrong, chances are you won't be acceptable to a LL anyway.

FATBALLZ

Only the financially naive agree to be guarantors. You're setting yourself up to be responsible for an unlimited liability caused beyond your control.

BitterAndTwisted

Also, I can't see why a recent graduate can't do what most people do: that is, find a flat or house-share. These rarely need a guarantor, most ask for a deposit and a month's rent in advance. Someone new to London and full-time employment can't expect to be able to afford a place on their own right at the start of their career.

DVardysShadow

zzzLazyDaisy wrote: »

... However, once you agree to be guarantor you are stuck with it. You can't later change your mind if your circumstances change (at least not without the LL's permission and in most cases it is unlikely that will be forthcoming). Also as someone else has said, if you can't afford to cough up if things go wrong, chances are you won't be acceptable to a LL anyway.

That is the normal form of a guarantee. I don't know why people don't provide a limited guarantee of say 4 or 6 months rent and retain the right to give notice on behalf of the tenant.

zzzLazyDaisy

That would be a good idea, but I guess people who agree to stand as guarantor don't expect to have to cough up the cash, so probably don't think about it too much at the time - and probably most LL's wouldn't accept a limited guarantee owing to the potential hassle of having to evict an otherwise good tenant after a few months.

Personally I would never do it after seeing my cousin almost bankrupted by her low-life boyfriend who moved into a flat, claimed LHA and happily spent the lot leaving my cousin to pick up the tab (and yes I do know that the LL can apply for direct payments of LHA after two months, but it took this particular LA a further two months and numerous letters from my cousin before they actually did this)

G_M

Credit_Jake wrote: »

What is a DW? Is there a place on here explaining all these acronyms? I'm only 23 but feel but of touch lol. Sorry to hijack.

I'm much older but acronyms pass me by too. lol?
What's wrong with English?

Geenie

FATBALLZ wrote: »

Only the financially naive agree to be guarantors. You're setting yourself up to be responsible for an unlimited liability caused beyond your control.

Parents have to when their kids are in students lets in many areas. We certainly had to for ours else they wouldn't have got a place. As a LL I can state that I would follow through with the guarantor if the tenant got behind with rent, so I think the OP is wise to be cautious.

Just a thought OP, as you say the friend has no family in the UK. Are they in a position to forward money to her from where ever they live, paying 6 months rent up front, as this might make it easier for her to get the let? I can't see why this shouldn't be an option, rather then thinking only someone in the UK is needed.

A difficult position for you OP as wanting to help out a friend, but you are also wise to realise the implications to you if taking this on. Good luck.