My husband is going to be guarantor for my son

diggle

Hi.
This is my first post so will try to be brief.
My son has moved to Manchester to work and live and my husband has today had a letter from the rental company stating my son has named him as guarantor,for reasons to petty to go into my son and i are not on speaking terms at present,so i do not as yet know if my husband is aware of how much the rent is ...etc....it appears my son is joint renting with someone.
Worse case scenario if the other person left and god forbid my son is incapable of work for any length of time[he has always worked i should add,it's more if he had an accident or sickness] would my husband be liable for the whole rent?
At this moment in time i have no idea on the lease length.
I appreciate he is our son ,i am just cautios as we still have a mortgage on our property ,and whilst we have literally just built up some savings,i do not want us to lose them if it all goes pear shaped.
Thanks .
Any thoughts on this matter greatly appreciated.

jjlandlord

Well if the only information your husband has had is a letter that your son "named him as guarantor" it obviously means that no guarantee exists.
For a valid guarantee to exist your husband should be provided a copy of the tenancy agreement, then a deed of guarantee should be executed.

If the tenancy is a joint tenancy, by default the guarantor would guarantee the whole of the rent and all joint tenants are jointly and severally responsible for it.

GAH

Did your son even ask your husband if we would act as guarantor it the first place rather than expect it.

Regardless of the amount of guarantors on the contract, your husband will be 'joint and serverally' liable, so if your sons friend defaults, the onus can fall back on your husband.

It is a big commitment to make, but in this economic climate with people losing their jobs etc, it is easy for people to fall behind on payments.

My kids are not of that age yet, but if they were sharing a house with others I would feel very un easy about covering other people.

If you do go ahead, make sure your husband reads all documentation, terms and tenancy agreements thoroughly, and if he doesn't understand bits, seek legal advice before signing.

Eton_Rifle

I'd be wondering why your son is unable to secure a tenancy without providing a guarantor, thus indicating a higher than usual level of default risk.

hayleymoo

The first house I rented, I had no credit score (I'd never had any CCs, loans, etc.) and I had never lived with my (now) husband before, so they needed a guarantor from me in case I defaulted on the rent. I knew I was trustworthy, but they obviously had no way of knowing.

My FIL agreed to act as guarantor, however he had to sign the contract himself. Your DH has never entered into a contract with the EA (is how I'm reading the OP) and thus he is not the guarantor. It sounds as though your son has named your husband and now the EA is seeking your DH's permission.

It's up to him whether he does agree or not, however I'd be wary with someone else in the house too, someone I didn't know.

diggle

Thank you GAH,
I assume our son will have asked my husband[i have not spoken to oh yet as he is still at work]I habe to say i am worried ,my son has always worked ,it's not that part i worry about ,but if he was ever off ill or had an accident ,although my husband's view [i believe]will be of course i'm going to sign it,he's our son.
I only work part time so most of our money is from my husbands wage's,i just really worry about things like this in case we lose our home[should add i always go worst case scenario ,and work backwards,just my way ,and a life time of my parents telling me never a lender or a borrower be]
I will of course suggest my husband read all documents etc.....but he tends to be like it will be okay[he's not a big reader,slight dyslexia]
Thanks

diggle

My son works in the Bar and catering industry,i think he may well be moving in with his girlfriend who is starting at Manchester Uni in September.
He has had lots of jobs in the Bar trade,and tends to take a step up to a better[his words]bar.
In his defence he is not a lush ,he works hard but it really does not make a diffrence it is the profession he has chosen,and he does not drink , do drugs or anthing bad.

diggle

Hayleymoo,
My son has had loans for cars,which he has always paid in full,but never had credit cards[just store cards i.e topman]
What is EA? I think that my son's case is similar to yours ..he is trustworthy but due to the amount of jobs he has had[never been unemployed at all]in the bar trade that is probably why he needs a guarantor,just worried that if he cannot pay for some reason we are lumbered.

keepsaving!

Hi diggle, it might be worth your husband finding out why your son needs a guarantor in the first place, if he is moving in with his girlfriend who will be at uni (so presumably not working full time?) it might be her 'part' of the rental agreement that needs guaranteeing? My Mum was my guarantor when I moved into my first rental place with my (now) husband as I had just resigned from my job and they needed the guarantor just for me even though husband was working full time. Ashamed to say I can't remember if Mum was responsible for the whole rent or if it was just 50% to cover me...depends on the tenancy agreement I suppose as to how much a guarantor is responsible for??

diggle

I have now spoken to my husband ,it turns out he is moving in with a girl and her parents have had to be guarantors for 50%. however this makes me no less worried,my oh has told our son he must not default on the rental,and i know this could happen to anyone BUT.......If he is ill or has an accident ,it is our savings we will have to use,having only just joined MSE and taken all advise regarding savings,mortgages and loans etc is it really wrong of me ..to not want my husband to commit his name to this?We have always struggled financial ,never been behind with any bills,mortgage,loans etc.and in 5yrs time will be mortgage free at last ....i think my lightbulb moment has come and i really want us to be so careful with money now.

JanCee

He is your son, you know him better than we do. Has he been reckless with money in the past? If he hasn't, then yes I do think it is unreasonable of you to try and persuade your husband not to act as a guarantor. He is likely to lose the flat without one.