Being a guarantor for students

steampowered

I agree with silvercar. It's reasonable to be a guarantor for your kid.

It is all very well all these other posters saying "don't do it". Would they prefer the DD drops out of uni unable to secure accommodation?

It would be worth perhaps telling the letting agent you will only guarantee your daughter's share. Not sure that will fly but worth a go.

SmashedAvacado

There is a solution to this. Ask each of the guarantors to enter into a cross indemnity with each other (the landlord does not need to be involved) whereby they indemnify the others in respect of any claims as a result of the default of their relevant offspring . The landlord can go after anyone, but that means the guarantors then agree with each other that they will pay up if the claim is made against the wrong parent. Obviously that still leaves a hole where one parent has no money and therefore can't repay but it works better than nothing.

LandyAndy

silvercar wrote: »

It is what parents of students do.

Students want to live in shared houses. Landlords won't lend to anyone with no income and no previous landlord reference, so require parent guarantors.

If you don't trust your daughter in choosing her friends and in paying the rent, then how do you expect anyone else to?

This ^^^

I have been guarantor for both my sons over the past 7-8 years. Indeed, I still have to act as guarantor for my elder son, even though he is halfway through a PhD because his landlord won't accept his funding income as income. Younger son is one year into a D.Phil and no doubt I'll have to do the same for him in twelve months time when he is no longer in College accommodation.

99.9999999% of parents who stand guarantor for their children while at university have no trouble at all. I certainly never have.

Out,_Vile_Jelly

It's standard for parents to have to be guarantors for student tenancies. Why else would landlords take the risk?


Unfortunately there is a small risk that other housemates can abscond without paying and leave one tenant with the full debt (happened to my brother and really rocked his confidence; he thought they were his friends). So make sure your daughter and housemates are aware of the consequences.

Housebuy12345

You only guarantee her rent

Marvel1

steampowered wrote: »

I agree with silvercar. It's reasonable to be a guarantor for your kid.

It is all very well all these other posters saying "don't do it". Would they prefer the DD drops out of uni unable to secure accommodation?

Local uni, there are other options.

need_an_answer

Housebuy12345 wrote: »

You only guarantee her rent

It depends on how the tenancy is worded.

Ideally you only guarantee your own offsprings rent although many contracts are written so that its the total rental payments.

2 Years ago our uni offspring entered into a multiple occupancy rental but we were able to agree with the agency/LL that it was just their rent we were guarantor for.

It turned sour quite quickly between the housemates,within weeks but luckily whilst no one spoke to eachother for the best part of a year,they all had the sense to pay their rent.

OP you can but ask for an agreement to just be guarantor for your daughter.....

Yellow_mango

Whilst in theory the contract is likely to make your child (and so you as guarantor) jointly and severally liable for the whole rent, in reality the agent will require ALL tenants to have guarantors. So in the event of default they are most likely, initially at least pursue the relevant guarantors in the appropriate proportions. Apart from anything else that has to have the greatest chance of success with least conflict.

That doesn’t completely remove the risk that someone else’s guarantor will pull a fast one, and you end up getting pursued for the whole amount, but that’s the risk you’re taking on, not the risk of any of the other students themselves defaulting.

I actually had a situation recently where my daughter and her flatmate were late with their rent. Both guarantors were contacted. (The girls sorted it out in the end).

If you’re totally unwilling to take the risk, there are professional guarantor companies you / the student can pay to take the risk. At a cost obviously.

Jox

Just say you can't do it. My cousin asked me to be her guarantor, I needed to earn over £40k to do so, I told her I don't earn that much so couldn't help thankfully!

welnik

Thanks for all your replies. I have been forwarded part of the "contract" which makes interesting reading:-

"******** charge an ‘Application Fee’. This fee is to cover the costs of processing your tenancy request and once paid is non-refundable. The cost includes; administration, credit checks, landlord references, employment references and residency checks. Each individual tenant must complete an ‘Application for Tenancy’ and pay the application fee. NB: Where a guarantor is required, this may attract an additional charge"

Now correct me if I am wrong but I thought the new legislation states that all of the above are prohibited under the new act?