Acting as Guarantor

FreddieM

My friend has been asked to be the guarantor for a property her (working) daughter is applying for. Daughter has a partner (unemployed) and they have two young children. They are in a 2 bed house but want a 3 bed. My friend loves her daughter to bits but is unsure what is the right thing to do as she herself is working only as a bank staff member. What's the answer here ANYBODY????

hcb42

is she cannot afford to lose it, dont do it.

Harsh, perhaps, but better than the alternative.

G_M

Can she afford the rent? It's a serious legal commitment so she needs to consider the worst case scenario (which after all is why the landlord/agent is requesting a guarantor!).

Daughter and partner split up. Daughter comes home with kids in floods of tears.
Partner stays in property but stops paying rent.
Mum (guarantor) has to pay rent. Month after month after month...!

Or daughter loses job. Parter is unemployed.
Mum (guarantor) has to pay rent. Month after month after month...!

Can she afford this?

Is she happy/willing to do this?

If not, don't do it.

FreddieM

helencbradshaw wrote: »

is she cannot afford to lose it, dont do it.

Harsh, perhaps, but better than the alternative.

Can you explain that for me..... So i can sheare it with her

tomitma

If she agree's to act as guarentor, it means, that she is agreeing to guarentee, that the rent will be paid, also if there are any damages to the property, she will pay the cost of repairs, if the daughter can not or will not.

In other words, if they sign a tenancy agreement, and can not or will not pay the rent then your friend has guarenteed that she will pay it.

Once this agreement is signed, the agency or landlord will then chase your friend for payment.

FreddieM

Thanks for the replies. I am sharing this third hand so to speak and i believe she is looking at the real risks involved ;-)

Jowo_2

Bank staff - so no guaranteed hours then? Guarantors are normally expected to be in the financial position to cover rent arrears.

Can't daughter wait until the partner finds employment and let the children share in the meantime?

jillymit

This agreement sounds similar to the one I was asked to sign for my student son renting private property.
I asked a solicitor for advice and was told that signing it would mean simply that I would be liable for his rent and any damage done on the property should he for any reason be unable to pay. It is legally binding and could possibly lead to a whole world of hurt (massive debt)
He advised me against signing!

Your friend's answer should be a firm and definite no.
No matter how much she loves her daughter and wants to help out it is not something to think of as ' just in case' and ''it will never happen'

She might like to explain it to her daughter in real terms...... Would her wage be enough to cover her daughters rent and her own living expenses should anything happen that results in her daughter becoming unemployed?
I'm sure any loving daughter would understand why a Mum would have to say no.

Annisele

The thing is that people say "there is no chance of me not paying the rent" because they think that all these awful things that happen to other people couldn't possibly happen to me. But - they do happen to somebody! In the case the OP describes, relationship breakdown is just one possibility that could leave the OP having to pay for her daughter's ex-partner's rent.

OP - is it an option for your friend to lend her daughter six months rent? Sometimes LLs will take that instead of a guarantor (though that brings its own risks to both the daughter and the mother). If your friend can't afford to lend six months rent, that suggests she can't afford to be a guarantor either.

tomitma

debt2011 wrote: »

I have a guarantor and I would not of understood if my family had refused to do it. There is no chance of me not paying the rent so it goes smoothly.

If the daughter became unemployed or single she could claim housing benefit so the rent would still be paid.

I wouldn't bank on it, if it is a private let, then it will be dealt with at the Local housing rates, as from April these rates are being changed, and the rent may be too high, to be covered by the benefits. Also if there are more bedrooms, than what the council think you should have, you will not get the full amount of rent paid, you have to make up the deficiency yourself.

hcb42

and why should the state pay for someone who is considered such a risk that they need a guarantor in the first place..!