Guarantor??

Teen_the_Drama_Queen

Hi all, this has probably been asked loads of times before, but I cannot remember the answer, my DH and I became bankrupt in April 2011 and therefore are now discharged. My son and his young family are now looking to rent a place, he is self employed so will need a guarantor. Would my DH or I be ok to be considered or is this a no-no as we have been BR? Many thanks.

alastairq

......there ought to be no problem, since you are discharged..however, remember, the guarantor system only works for the creditor, never the debtor.

I suppose you've already considered this, but, if you can arrive at a position where you needed to petition BR, so can anyone else?

Frankly, it is something I personally would avoid...creditors would be merciless.

Annisele

It's up to the individual landlord whether he'll accept a particular person - there's no standard rule.

There's also no standard rule that says self employed people need guarantors to rent houses. Some landlords insist, and some don't. Being a guarantor is a huge commitment - so you might want to see if you can persuade your son to find a landlord that doesn't demand a guarantor.

CKhalvashi

Annisele wrote: »

It's up to the individual landlord whether he'll accept a particular person - there's no standard rule.

There's also no standard rule that says self employed people need guarantors to rent houses. Some landlords insist, and some don't. Being a guarantor is a huge commitment - so you might want to see if you can persuade your son to find a landlord that doesn't demand a guarantor.

My mother guaranteed rent for me in Russia, and this was on condition she held 3 months (2 months exit period + 1 month rent).

It will ultimately be for you to negotiate with the landlord suitable terms. Offering 3 months upfront, then monthly (I have a tenant that does this) is generally a suitable suggestion.

CK

debt_doctor

Hi,

Generally, they look for homeowners to be guarantors, so in default they can target their house via a charging order if they don't pay.

I can understand that you want to help, but in our office we see so much grief come to guarantors, that our most used saying is "never, ever be a guarantor for anyone"

DD

Teen_the_Drama_Queen

Thanks all, don't really want to be a guarantor tbh, but don't think there is any way around it, he's got the necessary dosh to put up front, but I just think his self employment might be an issue.

TheGardener

Hi - similar position with my daughter - after further negotiation, the landlord was happy to accept 6 mths rent up front rather than a guarantor but then we found another place where the landlord was happy with 3 mths rent up front and no guarantor. As DD says, I wouldn't chance it if I were you. Or - make it clear to the landlord how much you will guarantee - a friend of mine did something similar and the landlord accepted the deal that the guarantor (tenants sister) would only guarantee 3 months rent if the tenant defaulted so it was up to the landlord to make sure they didn't let the tenant slip into arrears and notified the guarantor within a week of rent falling due if it was unpaid.

CKhalvashi

Teen_the_Drama_Queen wrote: »

Thanks all, don't really want to be a guarantor tbh, but don't think there is any way around it, he's got the necessary dosh to put up front, but I just think his self employment might be an issue.

How long has he been SE? I ask for 2 years accounts when dealing with lettings.

If he put the money upfront, this won't be an issue. The only issue may be the ML checks, if 12 months (should the LL desire) go over £10,000.

I'd either do it as 3 months + 1 month deposit with monthly payments (always three months ahead), or 12 months + 1 month deposit, with no monthly payments (renewing annually for a year).

CK

dktreesea

Rather than you being a guarantor, if he offers to pay the six months rent up front, that should be enough. That's what we did - it worked like a charm. He might need to save up, but it does take the worry out of it for the landlord, i.e. it will be clear that he can afford the property.