Househunt Guarantor

wary

My son is arranging second year student accommodation and asked me to complete the Househunt Guarantor form:
http://www.househuntltd.co.uk/images/pdfs/Guarantee_agreement.pdf

I have absolutely no experience of the rental system, and hence am unfamiliar with the guarantor system (although obviously I understand what a guarantor is).

Is this a fairly standard form? Or is there anything about it which I should be wary of? ... or should get legally checked to see exactly what I'd be leaving myself open to?

Thanks

G_M

Although a bit wordy, the terms are fairly standard.

Things to note:

1) if 'the tenant' comprises more than one person (ie your son is sharing the property and the sharers are all joint tenants on the same contract) then you are guaranteeing the entire rent, no just your son's 'share'.

2) if on the other hand, your son is the only person named on the tenancy agreement (and his mates each have their own tenancy) then you are just guaanteeing your son.

3) similarly, if another joint tenant causes damage (ie one of your son's mates who is alo on the tenancy) you are resposnible for the cost

Having said that, interestingly the agreement uses the word 'consideration' several times - I suspect this is to attempt to make the guarantee agreement a contract between you and the landlord. This would not stand up in court though - it is not a contract, as you personally are receiving nothing in return for the guarantee.

To be legally binding, it should be a Deed (not a contract). And to be a Deed

a) it must use the word 'Deed'
b) it must be executed as a Deed
c) your signature must be witnessed by someone independant
d) the full terms of the Deed must be known to you - that means you must be given a copy of the full tenancy agreement you are guaranteeing, in advance of your signing.

I strongly suspect that this guarantee agreement would therefore be invalid. You can safely sign it, knowing that if the landlord took you to court based on this document, you'd have a good chance of it being thrown out by a judge.

Although I accept you've just linked o a draft, it's also unclear if 'Househunt' is the landlord or the agent. The tenancy agreement of course should make this clear, as should the guarantee agreement.

eddddy

G_M wrote: »

1) if 'the tenant' comprises more than one person (ie your son is sharing the property and the sharers are all joint tenants on the same contract) then you are guaranteeing the entire rent, no just your son's 'share'.
...

3) similarly, if another joint tenant causes damage (ie one of your son's mates who is alo on the tenancy) you are resposnible for the cost

If it's a shared student house, it's worth emphasising the probable extent of your liability as guarantor (as well as your son's liability).

If your son's housemates fail to pay the rent or damage the house, your son would be liable - and you would be liable as well.

e.g. If his housemates have a wild party and wreck the place, you could be pursued through the courts for the cost of repairs (even if your son wasn't even at the party).

Unfortunately, that's the world of student houseshares.

Have you met all the housemates who you are underwriting in this way?


Edit to add...

(Although as GM says, you could try challenging the validity of the guarantor agreement in court, if things went that far. However, even if the guarantor agreement was found to be invalid, your son would still be liable.)

wary

Thanks both for the detailed info - much appreciated.

Yes, it is a shared student house and I've never met his housemates-to-be.

IIUYC, it sounds like my liability would be less if each individual occupant has their own tenancy contract rather than signing a joint one ... even though the guarantor form will explicitly state my son's name only?

Regardless, assuming that each occupant provides their own guarantor, presumably the worse I could be would be JOINTLY liable for any other tenant's rent default or damage caused?

Thanks

csgohan4

you need to make sure you are the guarantor is only your son.


IMHO I wouldn't be a guarantor if I can help it. They will come looking for you if your son fails to pay. Families get torn apart over money.

Rain_Shadow

I wouldn't be a guarantor if I could help it.


However, the reality of student accommodation doesn't often allow you to be that choosy.


I have stood guarantor for my elder son in three of the last four academic years and will be doing the same for my younger son next year.


I have personally never had any problems and I imagine that is the experience of the vast majority of parental guarantors.

davidmcn

wary wrote: »

Regardless, assuming that each occupant provides their own guarantor, presumably the worse I could be would be JOINTLY liable for any other tenant's rent default or damage caused?

In theory yes, but joint and several liability means that the creditor can choose who to pursue - he could recover the full amount from you and leave you to chase the other tenants to reimburse you their shares.

eddddy

davidmcn wrote: »

... and leave you to chase the other tenants to reimburse you their shares.

Is that likely to be a legally enforceable debt?

I can't see how there is any binding agreement between the guarantor and his son's housemates about reimbursement in those circumstances.

(Unless the guarantor and the son's housemates specifically enter into some kind of agreement to that effect.)

silvercar

csgohan4 wrote: »

you need to make sure you are the guarantor is only your son.


IMHO I wouldn't be a guarantor if I can help it. They will come looking for you if your son fails to pay. Families get torn apart over money.

Families also support each other. If you want your offspring to have the chance of decent accommodation with his chosen housemates, there is often little option but to sign as guarantor.

If you are happy for your offspring to secure accommodation at the last minute by landlords who are not able to find students with guarantors for their property, then you could choose to refuse to help.

Do what you can to minimise the risks, but at the end of the day it may be that you need to be a guarantor.

silvercar

davidmcn wrote: »

In theory yes, but joint and several liability means that the creditor can choose who to pursue - he could recover the full amount from you and leave you to chase the other tenants to reimburse you their shares.

Always better to appear to be the guarantor who only just manages to qualify in terms of income levels etc/ has an address that is going to be difficult to track etc than the one who could pay out money like shelling peas.

G_M

wary wrote: »

Yes, it is a shared student house

IIUYC, it sounds like my liability would be less if each individual occupant has their own tenancy contract rather than signing a joint one
yes, but pursuading a landlord to change the way he lets his property may not be easy!

... even though the guarantor form will explicitly state my son's name only?

Regardless, assuming that each occupant provides their own guarantor, presumably the worse I could be would be JOINTLY liable for any other tenant's rent default or damage caused?

Thanks

In a joint and several tenancy, each tenant is liale for the full rent (and al damage).

And each guarantor is responsible for the liabilities of the tenant they guarantee.]

So if, for example, none of the joint tenants paid rent, the landlord could demand thr entire rent from

* your son OR
* one of the other tenants OR
* you OR
* one of the other guarantors OR
* any combination of the above

In practice, the LL will chase several of the above or the easiest to find/chase.