2 guarantor questions

TamsinC

eddddy wrote: »

Maybe.

So if your daughter owes the LL money and doesn't pay (and you don't pay) that might mean the LL has to get a CCJ against your daughter.

The LL might then choose to apply to freeze her bank account, seize her assets (e.g. car?), make an attachment of earnings.

(e.g. Her first job after graduating, and her employer is contacted by the court to say she hasn't paid her debts, so money must be deducted from her salary.)

I guess some parents might prefer to volunteer to pay their child's debt to the LL before it reaches the CCJ stage.

Luckily there are NO debts , no assets either mind.

It was purely an interesting thought - had she ever not been able to pay we would've paid. She now no longer needs guarantors.

Owain_Moneysaver

JJMerida wrote: »

1. I have recently bought a property and, because I'm a student and don't have a salary, have to keep it as a buy-to-let. I'm also about to move into a shared rented property and was told by the landlord that I would still need a guarantor. My parents can do this, but I'm not sure I understand why I would still need one, given I'm a homeowner?

As a buy-to-let landlord you're reliant on your tenants paying their rent for your income (which may be largely taken up by mortgage and other landlord expenses) and that's not the most reliable of incomes. A landlord can easily lose 6 months' unpaid rent before he can get repossession of the property through the courts and bailiffs.

A recently-purchased buy-to-let may not have any equity in it if it was purchased with vacant possession but could only be sold with sitting tenants.

The landlord may want the guarantee witnessed by a solicitor or at least identity verified by a solicitor (or their office) as they think it will make it harder for the guarantor to later claim they did not understand what they are signing or did not have an opportunity to take legal advise. Whether that actually has any effect is another matter.