Guarantor for rental

desthemoaner

Friend of mine needs me to act as guarantor for her next rental property, but has read elsewhere that its unlikely I will be accepted because I don't work full time.

I have a decent occupational pension and work two days a week for a public service, giving me an income of over £20k per annum. I've never been turned down for credit other than, when I was a student, having my bank card confiscated by a Midland Bank cashier when in summer 1976, I tried to top up my overdraft once too often.

Is the fact that I don't work full time likely to be a problem if she nominates me as a guarantor?

Thanks.

Mojisola

Never agree to be a guarantor unless you know you can pay her rent - as well as all your living expenses - for the length of the rental.

Someone else will know whether working part-time will be acceptable although you could always ask the LL.

pmlindyloo

Letting agents/landlords all differ as to what they require from a guarantor in terms of eligibility.

Most require a credit check and ownership of a UK property.

You will need to ask the LA/LL.

Please, please google 'acting as a guarantor for a rental property' so that you know exactly what is being asked of you.

As well as being liable for any rent you will also be liable for any damages. In fact, anything that comes under your friend's tenancy agreement.

LLs/LAs use guarantors as an insurance policy that they will never be out of pocket.

You must be absolutely positive that you can afford to pay the rent for the entire tenancy agreement (if they default immediately) plus any damages incurred as well as paying your own living expenses. This could be thousands of pounds.

That is why LLs/LAs like house owners so they can take them to court and put a charge on their property in the event of non payment. (Don't mean to frighten you but most people never consider the worst possible scenario because they 'trust' their friends/family.)

theartfullodger

A genuine, legally-enforceable guarantee is a blank-cheque: be very careful... can you really be sure that if they get sick/lose job/start doing drugs they'll never not pay rent??

Many agents & landlords get the paperwork wrong so that the agreement is not enforceable. As to see what they will want you to sign. In particular (DON'T ASK!!) see is it is a "deed of guarantee" (you want it not to be..)

desthemoaner

Thank you all very much. I doubt very much whether my friend will let me down, but that amounts to little except fine words until and unless they're tested.

I'll consider the matter very carefully before agreeing to be her guarantor.

Thanks again.

BobQ

This is a big ask. Many people would not act as a guarantor for their family let alone a friend. As others have said you must be sure what you are committing to and what impact it would have on you if your friend defaulted.

You need to ask yourself if you truly know this friend that well. Think of a worse case scenario, say your friend leaves the country telling nobody but leaves the property trashed and 4 months unpaid rent. Say £10K of damages, fees and outstanding debts ? Or more? Then ask what impact it would have on your life if you had to hand over that sum? How might you do it? From savings? Go back to work full time? I know it will probably never happen but how certain can you be?

Even if an agent agrees to you being a guarantor, this just means that they can be reasonably confident of getting their money back, even if doing so causes you real hardship.

G_M

Mojisola wrote: »

Never agree to be a guarantor unless you know you can pay her rent - as well as all your living expenses - for the length of the rental.

But note. This is not the length of the Fixed Term on the Tenancy Agreement (eg 6 months).

It means until the tenancy ends- very different! If the tenant stays after 6 months, the tenancy continues indefinately, and so does your liability to keep paying rent if the tenant does not.

Personally, I would be happy with a guarantor who was a home-owner with a decent income. Does not matter if that income is earned or pension!