Draconion Deed of Guarantee

Guest101

Ok so you've paid in advance, you've shown the LL that you have money.


So when the other tenants don't pay, who is the LL going to chase? Because id go for the tenant who paid £x,000 in advance....

Guest101

BeatTheSystem wrote: »

Quite, my sentiments exactly.

The landlord will come after whoever they feel will give the best chance of recovery. I have substantial savings and would be a target. It could be any of the guarantors arbitrarily and unfairly that are targeted.

I could not believe the content of the deed of guarantee when I read it, I am amazed that other parents have actually signed this as you say it should be outlawed - disgusting approach, 2 of the 4 have signed it up till now. We, the parents were only given a couple of days to read and sign. This is very bad practice and because there is a lack of accommodation everyone is under extreme pressure to sign up.

A fairer system might be for the university to act as guarantors, if a student absconds or causes damage then they lose their degree and still have to pay fees.

If the deed isn't witnessed it's not going to be valid anyway.
Also if you didn't receive your own copy of the tenancy agreement.

student100

Guest101 wrote: »

Ok so you've paid in advance, you've shown the LL that you have money.


So when the other tenants don't pay, who is the LL going to chase? Because id go for the tenant who paid £x,000 in advance....

But the point is they could go after the *tenant* (who agreed to JSL) or any of the other guarantors foolish enough to provide a guarantee, but not after this tenant’s parents, who didn't sign the guarantee.

The average student tenant is not going to have substantial assets, so a landlord is not going to be successful in recovering large damages from them. In theory it could bankrupt the student, but I doubt most landlords would bother going that far for non-paid rent, etc. The average parent guarantor, on the other hand, might have considerable assets, so are risking more than the tenant is by taking on JSL.

Still, individual tenancies would be much better, but are rarer.

Depends on the housing market in a particular student city what the landlords can get away with. In some places there is an oversupply and it is easier for tenants to call the shots (*before* signing up to the tenancy...)

Lily-Rose_3

anselld wrote: »

It is not. It can only guarantee the daughters obligations under the contract therefore it cannot be "more draconian".

Neither does paying in advance change the daughter's obligations. The OP may have washed their own hands of any issues but that does not change the Daughter's position. For example she could still get a CCJ for someone else's unpaid rent despite having paid a year in advance!

I do hope the OP's celebration is not premature but I can think of plenty of scenarios where they will bitterly regret paying a year in advance.

I doubt she will regret paying a year in advance.

I would be interested to hear all the 'plenty' of scenarios that you envisage. As I said, repairs not being done in a timely manner is irrelevant, because she would not be able to stop paying rent just because a repair hasn't been done anyway.

anselld wrote: »

Nothing beats being told what you want to hear ;-)

You are missing the point that it is Joint and Several Liability tenancy with complete strangers which, if anything, is draconian. You seem quite happy to let your Daughter sign up so long as you are not involved.

Guest101 wrote: »

Ok so you've paid in advance, you've shown the LL that you have money.

So when the other tenants don't pay, who is the LL going to chase? Because id go for the tenant who paid £x,000 in advance....

Unless I am missing something, the OP has not signed the jointly and severally liable agreement. So the LL can NOT chase her for the unpaid rent of others, or damage to the property. She paid the rent for her daughter in advance instead, and the agent agreed to it.

This is exactly what we did with our daughter, so I know for a fact that it's possible. And in the 2 years in her shared student house, she always paid her rent, 6 weeks to 2 months in advance at a time.

A couple of her pals got behind on their rent, and as their parents had signed guarantor agreements, they were chased for the rent of others. But we weren't, because we refused to sign the frankly quite ridiculous guarantor agreement.

We just paid the LL 3 months rent in advance, and then our daughter always paid 1 or 2 months in advance after that. The LL was happy and in agreement, and so was the agent.

Saying that the OP can still be chased when she has not signed a jointly and severally liable agreement is horribly misleading, and plain wrong.

if she didn't sign it, and paid a bulk of rent up front instead (which is what she said she did!) then she won't be chased by anyone.

And so the OP is pleased to hear someone saying what she wants to hear. So what? Anyone would be. Especially when what they're being told is true. She is paying a bulk of rent up front, and she is not signing a guarantor agreement, so no-one will be chasing her for anyone's unpaid rent, or damages to the property.

silvercar

BeatTheSystem wrote: »

Quite, my sentiments exactly.

The landlord will come after whoever they feel will give the best chance of recovery. I have substantial savings and would be a target. It could be any of the guarantors arbitrarily and unfairly that are targeted.

I could not believe the content of the deed of guarantee when I read it, I am amazed that other parents have actually signed this as you say it should be outlawed - disgusting approach, 2 of the 4 have signed it up till now. We, the parents were only given a couple of days to read and sign. This is very bad practice and because there is a lack of accommodation everyone is under extreme pressure to sign up.

Guest101 wrote: »

Ok so you've paid in advance, you've shown the LL that you have money.


So when the other tenants don't pay, who is the LL going to chase? Because id go for the tenant who paid £x,000 in advance....

^^^This exactly. Whenever we have been in the situation we have stated our income to be such a level that it barely reaches the minimum required to be guarantor.

Anecdotedly, a lot of students put a signature on the guarantor form that may or may not resemble that of their parents. Letting agents are happy to file away the form and life continues as normal. Having been guaranteeing my kids' student rents on 7 occasions, I can tell you that only on 2 of those 7 occasions referencing queries were made.