Garuantor status in jeapardy for strange reason

Slithery

Blackavar wrote: »

As stated, this is a 6 month let.

I think you'll find that you're guaranteeing the tenancy for as long as it lasts. If the tenant chooses not to leave at the end of the fixed term then the tenancy continues indefinitely with you as a guarantor.

Thrugelmir

Blackavar wrote: »

The pot won’t deplete too much over the 6 months of thevrental agreement.

And if your family member accumulates arrears, refuses to vacate and causes damage to the property?

Thrugelmir

AnotherJoe wrote: »

I don't think that companies and organisations are set up for those whose income is in part or whole drawdown, and voluntary.

Totally set up. Companies and organisations will decide on their terms of conducting business. If a customer doesn't meet same or cannot provide the required undertakings. That's not their issue. Horses for courses. Never been any different.

csgohan4

Although unlikely for you, be very careful when considering being a guarantor


https://forums.moneysavingexpert.com/discussion/5846251/being-chased-for-unpaid-as-a-guarantor

AnotherJoe

Thrugelmir wrote: »

Totally set up. Companies and organisations will decide on their terms of conducting business. If a customer doesn't meet same or cannot provide the required undertakings. That's not their issue. Horses for courses. Never been any different.

It will become their issue, if they cannot do business with an increasingly large % of their customers who dont fit patterns that belong in the last century when everyone dutifully bought an annuity or collected their DB.

saajan_12

Blackavar wrote: »

As stated, this is a 6 month let. The LL may or may not extend after this - his choice. He must decide between a garuantor with a provable pot of cash that would cover the rent for years or one with a ‘regular wage’ who could get sacked next week. I know which I would choose but I am not a LL. I think if we were dealing with an actual LL it wouldn’t be an issue but management company is just doing a box ticking excercise.

No, It is an indefinite let for a MINIMUM of 6 months. You're potentially guaranteeing all the tenant's obligations, not jsut £Rent x 6 months, but also
- rent for the subsequent periodic tenancy (which the LL can't 'choose' to not extend)
- property damage
- eviction costs of court, bailiffs, months of unpaid rent..

If you're arguing the potential pitfalls of a salaried guarantor, you should also consider the pitfalls of someone with a pot of cash that they could spend on a house/car/holiday tomorrow. IF you refuse to pay and the LL secures a CCJ, enforcing that on a salaried guarantor has more options - get an attachment of earnings. If you give away or hide your cash, what will they do?

Ultimately the LA's position DOES make sense, but even if it didn't, its not up ot you. Its the LL's choice to determine the criteria, and you don't fit the bill.

Thrugelmir

AnotherJoe wrote: »

It will become their issue, if they cannot do business with an increasingly large % of their customers who dont fit patterns that belong in the last century when everyone dutifully bought an annuity or collected their DB.

Think you've gone off piste somewhat. As they are not conducting business with the guarantor. They require a guarantor to conduct business with the family member.

lincroft1710

Thrugelmir wrote: »

Easier to pursue someone in gainful employment than a pensioner with a progressively depleting savings pot.

But if that someone becomes unemployed?

Thrugelmir

lincroft1710 wrote: »

But if that someone becomes unemployed?

No one would ever obtain a mortgage either. Nothing is totally risk free. More a question of minimising. Will be a number of factors taken into consideration not just one.

parkrunner

Blackavar wrote: »

I am being assessed as a guarantor for family member renting a flat.
I am early retired living off savings pending SP kicking in soon.
I have no salary/other income but can demonstrate cash in bank accounts, pension pots, ISA’s which I would have thought would be looked on more favourably as a salary which can disappear tomorrow.

As can savings.