Sister has asked me to be her guarantor

Pollycat

JReacher1 wrote: »

Yes I don't disagree with this. I would put my family ahead of a potential £8-10k debt. It might not make be financially savvy and I don't even think it makes me compassionate. I thought most people would be the same.

I was told you can't put a price on family. It seems you can and its about £8k

I assume the 'you' is general, not specifically me.....
I'm not sure where the £8K has come from.

Pollycat wrote: »

But....we have helped my sister out financially in a different way.
She didn't ask - we offered.
We could afford to lose the money in worst case scenario but so far, things are going OK.

As per this ^^^^, I've put a price on family - and it's hell of a lot more than £8K.

JReacher1

Pollycat wrote: »

I assume the 'you' is general, not specifically me.....
I'm not sure where the £8K has come from.


As per this ^^^^, I've put a price on family - and it's hell of a lot more than £8K.

The £8k is just a guess based on say £650 a month X 12. I know people say it could be more than that but I am operating on a policy that a sister wouldn't voluntarily stay in a house forever rent free knowing that their sister was liable for the debt. This is obviously based on my relationship with my sister and not the OP's.

I also don't think there would be an issue with Bailiffs as Bailiffs would only be required if when the landlord asked the OP to honour the monthly rent she had agreed to cover the OP then said no.

cr1mson

Maybe slighly morally dubious but I would say sorry but I can't as already acting as guarantor for my children.

easilydistracted

I thought I was going to be really sympathetic to the sister in this situation. When my OH and I were first together and in a long distance relationship his sister guaranteed the rent on the little flat he rented as they would not accept his temporary contract income. He'd had to move as his daughters Mum moved her back to their home area so he moved too. If he hadn't had that leg up life may have been very different for us now. However he is incredibly careful with money. The OP has explained sister is really not careful with money and may be about to lose her main source of finance. She is also married so the primary responsibility for sorting her circumstances out is from marital assets. For all those reasons I'd so no I'm afraid, but think if there is any way you can help out. In my OHs case his sister and husband discussed it and both agreed or she wouldn't have gone ahead. He didn't let them down as his BIL knew would be the case.

VJsmum

JReacher1 wrote: »

The £8k is just a guess based on say £650 a month X 12. I know people say it could be more than that but I am operating on a policy that a sister wouldn't voluntarily stay in a house forever rent free knowing that their sister was liable for the debt. This is obviously based on my relationship with my sister and not the OP's.

I also don't think there would be an issue with Bailiffs as Bailiffs would only be required if when the landlord asked the OP to honour the monthly rent she had agreed to cover the OP then said no.

Stupidly, I came back to the thread ....

It is the fact that being guarantor means she would have no need to move, even if she were served notice. If I am honest, I am not sure she would tell me if she missed a month or two. I have seen first hand how these things escalate - and cost me around, yes, £10k.

What I have done is offer her real, actual, money. Several thousand for increased deposit, an insurance bond to protect the landlord against her not paying the rent and moving in, furniture and even food and petrol costs. Money I don't expect to see again. If I had been guarantor it would likely have cost me nothing. As someone said above, it is the worry of the unlimited nature of what it may cost that I don't need.

Really going this time, thanks again

Voyager2002

I served as guarantor for my son's rent when he was a student.

I read the agreement in great detail, and could see that my liability was only for rent (not legal and bailiff fees), and that I would only have had to pay anything under a fairly narrow range of circumstances. In the event I did not have any issues.

More recently, my little sister agreed to be my guarantor when I moved to a new city and my salary was low in relation to rent levels there. In fact I eventually found somewhere that did not require a guarantor... perhaps the point is that this was not seen as an issue.

Sea_Shell

Like someone said earlier, they may be able to AFFORD the rent....but actually prioritising and PAYING the rent might be a whole other thing.

Personally, I would not be a guarantor, but I might offer other 'quantifiable' financial help.

However, I would want them to prove to me that they are trying hard to save their own deposit/emergency savings etc, beforehand. I'm not just going to throw money at them, if they are (for example) still paying for full Sky package, going out socialising all the time and getting takeaways twice a week.

That would just be enabling their lifestyle...which i'm definitely not prepared to do.

qwert_yuiop

Guarantor means no limit to liability on any money owed. You could only limit liability by making a loan instead, which would likely never be seen again, it seems.

Pop_Up_Pirate

JReacher1 wrote: »

Yes I know what a guarantor is.

I am just saying that if my sister was in need and I could do something to help them which would probably cost me nothing then I would do.

I realise I am in the minority here as nobody else would seem to be prepared to act as a guarantor for a sibling who was in need. I find it a bit sad but I suppose this is how the world is today!

It only costs nothing if the sister is doing what she should be doing. If she doesn't because of losing her job, becoming ill, getting mixed up with a bad guy etc etc, then YOU will be left with a bill running into £thousands of pounds.
But if your sister had a track record of making rash decisions, financially incapable, reckless with money then you might think twice.

Added to which, the sister in this case is 43 years of age. Helping a 43 year old out in this way with her track record would only be enabling her and would not be helping her manage money and financial obligations.

JReacher1

Voyager2002 wrote: »

I served as guarantor for my son's rent when he was a student.

I read the agreement in great detail, and could see that my liability was only for rent (not legal and bailiff fees), and that I would only have had to pay anything under a fairly narrow range of circumstances. In the event I did not have any issues.

More recently, my little sister agreed to be my guarantor when I moved to a new city and my salary was low in relation to rent levels there. In fact I eventually found somewhere that did not require a guarantor... perhaps the point is that this was not seen as an issue.

I'm glad I'm not the only person here who would be a guarantor to a family member!

I've started to feel there was something wrong with me as I am prepared to help my family out and not let them suffer!