Releasing Rent Guarantor "between jobs"

Regedit

I started renting a flat from a letting agency just over 3 years ago and at the time, although settled 1-2 years earlier, an IVA still showed on my credit file, therefore my brother kindly signed a guarantor's agreement for my rent, which was "addressed" to the flat owner but handled by the agency.

As a courtesy, I now wish to release him from his guarantee, as I now have a clean and pretty good credit file/rating. The only worry I have though is that I was recently made redundant from my job of 10 years and received a substantial payout, am taking a small break for now but I am concerned that if I ask the letting agency for the guarantee to be released, they may ask me to complete a full statement of means form, which may also ask if I am currently in full employment, and my salary? Although I have plenty of funds to last me some time, I can't help feeling the agency will take a more "computer says no" view and I end up shooting myself in the foot.

Are they likely to ask for this additional info as a matter of course, and indeed can they, if the only grounds for needing a guarantee previously was my adverse credit rating, rather than my salary? I am hoping if I send an email (or a letter?) consenting to them running another credit check, this will be sufficient and they can simply contact my brother to release the guarantee?

Many thanks in advance for any advice!

stator

Well I don't believe there are any rules at all.
You can ask them to release the guarantor and they can say no. They can ask any questions they want and you can refuse to answer them all.
If you've been paying the rent ok for over 3 years the landlord may be fine with it. If they are nasty then they probably won't want to release the guarantor at all because there is no advantage to them if they do.

Regedit

Thanks, appreciate the feedback. My rent has always been 100% paid and on time, I enjoy a good relationship with the agency as well as the landlord, as I've met him on several occasions when things have needed doing. I guess it's still pot luck though, I can ask them to release the gurantee and if they send me a form requesting the other info I guess I could ignore until I am in new work, or suggest that the additional info isn't pertinent, though I also don't want to raise undue "suspicion", if you can call it that. I think the landlord, who has final say, would probably be OK with my situation anyway but that's not something I want to ideally test.

Cakeguts

As you are not going to need the guarantor it won't make any difference.

Regedit

Not sure I agree there, as I said it's a courtesy (it cropped up recently in conversation) and as with all guarantees, company guarantees, securities over properties etc. they are usually released when no longer required. It would be a little flippant for me to not say anything and let it run indefinitely.

[Deleted User]

As you have never needed your guarantor to pay out and don't anticipate him having to.., not sure why you need to mess with the situation now when you have just lost your job and can't prove an income? Timing doesn't seem to be too good.., and there's just no need.

I am an eternal pessimist.., so while you feel able to take a break.., how sure are you of being able to get another job when needed?

Regedit

If that was a risk then I wouldn't be taking a break

Anyway this is drifting a little ways from my original query, thanks for the responses all the same.

G_M

Regedit wrote: »

Anyway this is drifting a little ways from my original query, thanks for the responses all the same.

Your original queries were:

..... I am concerned that if I ask the letting agency for the guarantee to be released, they may ask me to complete a full statement of means form, which may also ask if I am currently in full employment, and my salary?
Almost certainly, but you'll only find out by either
a) making a formal request, or
b) having an informal chat and asking hypothetically (perhaps the LL rather than the agency)

Although I have plenty of funds to last me some time, I can't help feeling the agency will take a more "computer says no" view and I end up shooting myself in the foot.
The agency is employed by the LL partly to manage the rent and property, and partly to advise and protect his interests. So they will err on the side of caution in case things go wrong and the LL blames them

Are they likely to ask for this additional info as a matter of course,
Yes, likely, though it's not guaranteed
and indeed can they, if the only grounds for needing a guarantee previously was my adverse credit rating, rather than my salary?
Yes of course
I am hoping if I send an email (or a letter?) consenting to them running another credit check, this will be sufficient and they can simply contact my brother to release the guarantee?

This is unlikely to alter their approach to a formal request to remove the guarantee agreement. If you really wish to pursue this, and minimise the risk of full vetting, speak to the LL or agent.

But why bother? The only reason I can see for wanting to remove your brother from the obligations under the guarantee agreement, is to protect him from any claim by the LL /agent.

1) if you continue to pay the rent, and cause no damage, no claim will be made against your brother, so stirring up the matter of the guarantee makes no difference to him.

2) if you anticipate a claim might be made against your brother (for rent arrears or damage) then that will simply prove that the LL would be sensible to maintain the guarantee agreement

So the real question is - do you trust yourself to maintain your tenancy obligations, or to rectify any failings under the tenancy yourself, or not?

jbainbridge

It's surely not in the interest of the landlord to end the agreement, especially as you currently don't have a job. I suggest you assure your brother that you will keep paying the ... so long as you do there's no problem.

anselld

The time to do this is when you think you will be able to pass full referencing on your own. Even then they may say no.
Expect to pay the full referencing fee if they say yes.

NeilCr

Had a client a while back who fell out with her guarantor. The guarantor wanted to cease the agreement because of this. I didn't see the final paperwork as client returned with it and saw someone else

However the outcome was that the guarantor was allowed to give a month's notice - but the client had to find another guarantor within that period or face eviction

No idea if it's relevant in your case Regedit but might be worth checking what you have signed - if you haven't already