Sister has asked me to be her guarantor

VJsmum

Hi all - advice asked for, if anyone can.

My sister, who i love, has got herself in a situation...

She and her husband got back together after a year or so's separation, 2 years ago. They;ve been married 13 years altogether and have 3 kids - 20 (hers from a previous relationship that my BiL adopted) and 2 younger ones (12 and 8).

I found out last week that he has kicked her out as she was seeing someone else - I don't know the why's and wherefore's that caused this.

She is trying to get accommodation (he has the kids for now), but says everywhere she is trying either won't take anyone on benefits (she is a full time student, not sure but i think she may have to give up her course) unless she has a home-owner as guarantor. She has asked me to be that guarantor.

My OH has said no, but I feel so bad turning her down... I would be grateful for any advice.. we can afford it to a certain extent but are close to retirement and have two kids of our own...

McKneff

Go with the husband....

tensandunits_2

Can she afford the rent with her income?

VJsmum

tensandunits wrote: »

Can she afford the rent with her income?

She says so - she is a FT nursing student (1st year mature student)with a bursary and a PT job. But..... some time off sick, or she gives it up (which she might, she doesn't have a great track record).

Does anyone know if there are options to limit the liability with these things?

kazwookie

I think you need to see the forms you are expected to sign and read them very carefully, then decide what you will do.

I personally would say no.

barbiedoll

When you say you can afford it "to an extent", does that mean that you can afford to potentially be liable for 6 or 12 months full rent, if she doesn't pay it?

I know you love your sister but this is exactly the sort of situation which drives a huge wedge between families. If you do agree to be her guarantor and she doesn't pay, it may cause problems between you and your husband, not to mention between you and your sis.

I know it's hard but tell her that you'd love to help her but you simply can't afford it. What about her new squeeze, can't he help out? I don't want to judge her but she got herself into this mess, she shouldn't have to rely on everyone else to help her out of it.

How old is she? If you're nearing retirement, and she has a 20 year old, she's obviously a mature student. Will her college/university provide any help on the accommodation front?

Somerset

VJsmum wrote: »

Does anyone know if there are options to limit the liability with these things?

Not really. The whole point is you are on the hook for anything she can't/won't pay - rent arrears, legals, eviction costs, damage etc. And they usually run with the tenancy, not just six months, though at renewal you can 'request' they release you. But they probably wouldn't.

meer53

I would say no too. Unless you can afford to pay her rent every week. Where is she living now ? Can't she live with the new BF ?

VJsmum

She is 43 - I am 10 years older and my OH is 58 hoping to retire at 50. Our own children are 18 and 20 - one about to go to uni and one about to leave (with no forward employment at the moment)

We can afford to pay rent if she doesn't, but it will be from money otherwise invested for our retirement. It is the prospect of it being unlimited liability that bothers me.

The "Squeeze" is long gone and her OH says he is seeing a divorce lawyer on Friday....

When they separated previously, they sold their house and divided the profit. He bought another house, she spent her share......

KxMx

Your local council housing dept likely has a benefit friendly accommodation list.

TBagpuss

Her husband ca't 'throw her out' - she is entitled to be in the house just as he is. Do they own or rent?

If they rent, then it may make more sense for her to stay in the current property and for him to rent elsewhere, if she can afford it and if he is in work and in a better position to rent.

If they own, then she may need to wait until she can obtain her share of the equity, and then look at whether she can pay (say) 6 months up front.

A second option would be to discuss with your husband whether you and he could afford to lend her enough to pay an increased deposit. This is still risky - she should be able to pay you each month instead of paying rent, but obly do it if both you and your husband agree that you can afford to lose the money if she doesn't repay you. And if you do do it, have formal written agreement which makes clear what she will pay and on wht basis (e.g. £x per month with a lump sum paid if/when she gets any lump sum from the divorce to clear any remaining balance)