Acting as a guarantor for a student

thehistorygirl

Long story, but my son has decided to return to uni in Sept. He had a few mental health issues earlier in the so we're really glad he's decided to go back. Anyway, as he wasn't sure until a few weeks before the end of term whether he was going to go back or not, he hadn't looked into accommodation for next year.

Anyway, after much panicking about finding somewhere to live, he has now found a room in a shared student house. All good, until the tenancy stuff came through from the agent yesterday. I've been a guarantor for his older sister when she was at uni, but was only liable for her portion of the rent and was happy to do so. This agreement for my son though is 'joint and several' so means I could be liable for the entire rent at an eye-watering £2990 per month! I'm not happy to do this, but wondered if it's worth trying to negotiate agent for a change in the agreement or offer to pay 3 months up front instead. They also say you must be a homeowner - I'm not.

I'm not actually sure if the agreement is legally valid anyway, as I'm sure a guarantor agreement must be a deed and needs to be witnessed independently. There is no space for this on the form they've sent.

I'm so proud of him for sorting himself out, that I don't want to put a spanner in the works, but also don't want to expose myself to potential financial ruin!

da_rule

Guarantor agreement doesn’t need to be a deed. They sometimes are as it increases the enforceability period from 6 to 12 years.

It seems like a bad deal from your perspective as it sounds like you could be liable if one of the other tenants defaults.

How are the tenancy agreements arranged, is it a joint tenancy between all of the residents or are there separate agreements?

I would raise the no house issue and also say that you want your liability capped to your sons share of the rent and his share of any damage costs etc.

thehistorygirl

It’s a joint and several tenancy between 6 students. I think I’m going to call the letting agent up on Monday and see if they will allow me to only guarantee my son’s part of the rent. No way am I am agreeing to all of it!

da_rule

That sounds fair. It doesn’t sound reasonable to make you stand as guarantor for 5 people you do not know and who’s finances you cannot vouch for etc.

[Deleted User]

thehistorygirl wrote: »

It’s a joint and several tenancy between 6 students. I think I’m going to call the letting agent up on Monday and see if they will allow me to only guarantee my son’s part of the rent. No way am I am agreeing to all of it!

As it’s a joint and several tenancy then legally speaking there isn’t your “son’s part of the rent” as he he liable for the whole rent the same as the other tenants.

Guarantor agreements do need to be executed as deeds to stand up in court.

00ec25

it is very common for student guarantor agreements to be joint and several as that is how many properties are let. So, as you spotted yourself, you would be liable for 2,990 pcm if everyone stops paying

it is a huge risk that most student parents face (many without realising)

of course you can ask for different terms and solo "liability" guarantee is possible, though uncommon. You won't know till you ask, same as not being a homeowner - for obvious reasons the LL wants a guarantor who has the wherewithall to pay if the LL needs to chase them for a debt.

and yes, guarantees do need to be done as deeds if the tenancy has already been signed
https://england.shelter.org.uk/legal/housing_options/paying_for_accommodation/guarantors

Slithery

da_rule wrote: »

That sounds fair. It doesn’t sound reasonable to make you stand as guarantor for 5 people you do not know and who’s finances you cannot vouch for etc.

Unfortunately 'fair' doesn't come into it. This is the status-quo for student tenancies and the majority of the LL's won't entertain a different contract for one tenant.

dimbo61

Most student tenancy agreements are done as " joint and several " so that the whole group are responsible for damage to the property.
If you had individual contracts then damage could be done to the property with No one admitting responsibility.
Students receive loans spead over 3 payments during the university year September to June which landlords and letting agents are well aware of.
Guarantor for students comes up every year with thousands and thousands of parents being asked to be guarantors without any problems.
The LL/Letting agents will already have 6 X deposit from the 6 tenants before they move in.
Would you be happy to rent your home to Six 19/20 year old students ? Without asking for some security

wesleyad

As above its completely standard in uni-land for this sort of thing. It's really up to you, hopefully the agent can sort something out.

Yes there is a risk, but it's low. Past experience I have had is that the joint and several nature is ignored, if one student doesn't pay they go after his guarantor, not the others (even though they could).

Also for you to be liable for the 2900, all 6 students would have to stop paying, the chances of that are astronomical.

t0rt0ise

It's not only up to you because your son is also signing himself up to be responsible for everyone's rent. Does he realise that and want that?

davidmcn

t0rt0ise wrote: »

It's not only up to you because your son is also signing himself up to be responsible for everyone's rent. Does he realise that and want that?

Yes, I think this is the more significant issue. Elsewhere we advise people not to guarantee even close relatives' debts, but it seems standard to be jointly and severally liable for the strangers students share with. And even if parents aren't formally guarantors, in practice their children are likely to be relying on them for finances.