Guarantor

lookstraightahead

My daughter has returned from uni full of joy as she’s found a uni house next year for just three good friends. She needs a guarantor. I live with her stepdad and we rent at the moment. As he earns the lions share of our income we are thinking it’s best for him to be guarantor. Hopefully you can be a guarantor if you rent??

I’m lying awake researching what exactly we will be responsible for - I haven’t seen the contract yet. As per usual DD is lastminutepanic.com and everything needs to be with the agent tomorrow. I’ve worked out that I really don’t want to be responsible for her mates rents and that it needs to be the right wording for the tenancy and deposit scheme etc.

One of my main concerns is that we want to buy next year. Will this guarantor business affect our credit rating as it looks like we are paying her rent / she’s still a dependant?

What credit checks do letting agencies do on student guarantors? Will we need bank statements etc?

Looks like I’m going to have a sleepless night. Might get a cup of tea ...

HampshireH

I hope you got some sleep.

To ensure you would never be liable for the whole rent and just your daughters she would need an individual tenancy agreement/deposit etc.

If they all sign 1 document they are all liable if 1 doesn't pay. If none pay the guarantor is expected to.

You dont say if the other 2 are getting guarantors or if they as a whole need one.

Seems very rushed. Just make sure it's all read properly before she or you sign anything.

You only need to search the forum to find the parents threads whose kids didn't read before they signed.

silvercar

One of my main concerns is that we want to buy next year. Will this guarantor business affect our credit rating as it looks like we are paying her rent / she's still a dependant?

It shouldnt do. In fact I doubt the lender would be aware of it.

What credit checks do letting agencies do on student guarantors? Will we need bank statements etc?

Variable. Some do nothing, others check out credit rating and employment.

Some dont execute the guarantor form as a deed, making it worthless.

Bottom line is that if you dont agree to be a guarantor, you are restricting your offsprings rental opportunities to the private rentals that no one else wants or to live in halls again.

csgohan4

negotiate and see if the LL will accept 6 months upfront rent for example


I wouldn't want to be a guarantor tbh, unless you have seen the small print and if your liable for the other house mates?

DCFC79

Your credit rating is only seen by you, your credit history is what lenders see.

saajan_12

Good news and bad news (x2)

BAD 1) If daughter is on a joint & several agreement on one tenancy with her friends for a whole property, then each tenant is liable for the full rent, there's no 'shares'. So as her guarantor, you'd be liable for the whole rent + damage to the whole property. You can then claim off the housemates if you've agreed they'll pay x% of the rent, but if they don't pay, the LL can just chase you for everything.

BAD 2) Most student LL's demand guarantors as the students don't meet affordability themselves, and will have enough offers who will oblige so if daughter doesn't have a guarantor, she won't get a good rental with her friends. The only way of avoiding being responsible for her friends' rent is to have an individual tenancy for her room only, but this is rare/more expensive.

GOOD: Often the agent doesn't properly execute a guarantor deed, meaning you can agree to what they ask for to get the tenancy and then later point out the deed is invalid and get off the hook. Ofcourse they might just do it properly.

Comms69

lookstraightahead wrote: »

My daughter has returned from uni full of joy as she’s found a uni house next year for just three good friends. She needs a guarantor. I live with her stepdad and we rent at the moment. As he earns the lions share of our income we are thinking it’s best for him to be guarantor. Hopefully you can be a guarantor if you rent??

I’m lying awake researching what exactly we will be responsible for - I haven’t seen the contract yet. As per usual DD is lastminutepanic.com and everything needs to be with the agent tomorrow. I’ve worked out that I really don’t want to be responsible for her mates rents and that it needs to be the right wording for the tenancy and deposit scheme etc.

One of my main concerns is that we want to buy next year. Will this guarantor business affect our credit rating as it looks like we are paying her rent / she’s still a dependant?

What credit checks do letting agencies do on student guarantors? Will we need bank statements etc?

Looks like I’m going to have a sleepless night. Might get a cup of tea ...

If the tenancy is joint (which is most likely will be) your husband will be on the hook for 100% of the rent, should they not pay. in addition any damage caused.

lookstraightahead

Thank you so so much everyone. I think the agent is a good one, my daughter did have the sense to get the contract checked out with the uni etc and as guarantor we are only responsible for her part of the rent (seen the for now). I think it!!!8217;s the best we can hope for rather than her not having anywhere to live next year. One of her friends is house sharing with 10 next year - at least the odds of damage are reduced with only 3 (who all seem sensible). I am on such a budget diet I!!!8217;m thrilled when I sell a £2 pair of gloves on eBay, only to be met with hundreds of pounds deposit so far in advance. Not sure how some families cope, although it takes a strong character to be a student landlord as well!

saajan_12

lookstraightahead wrote: »

as guarantor we are only responsible for her part of the rent (seen the for now).

Please quote the wording that makes you think this is the case, as I highly doubt that's correct.

It may well still be the best choice as a family, but don't misunderstand the financial implication of making sure daughter has somewhere to stay with friends.

lookstraightahead

I!!!8217;ve not seen the wording yet (came through to my husbands email) but OH said it!!!8217;s for her £4000 only. I!!!8217;m guessing however that liability for damage rests with us and the other guarantors. It does say on the agents website that the students are jointly liable but guarantors only for their !!!8216;child!!!8217; (well adult). I!!!8217;m not sure any of it joins up really. Nice valentines evening ahead reading contracts. Yeay.

lookstraightahead

I’m going to stop using apostrophes ... sorry