Guarantor for family member’s flat rental

queenofbargains

My relative’s workplace is closed due to lockdown. He is a hairdresser and self employed. He didn’t qualify for SEISS as too newly qualified. He will not receive any income so won’t have enough to cover all his bills. He does get a small amount of UC. If he can’t pay all his rent can the landlord legitimately ask me to make up the shortfall? 

Does he have any “rights” to request paying a lower amount of rent during lockdown? His landlord isn’t the easiest of people to deal with. 

Is he eligible to apply for any bounce back loan to get him through this current period?

I helped him through the last lockdowns but now desperately trying to source any help that might currently be available. Thank you in advance!

Grumpy_chap

Your relative may get some useful advice in the benefits board as to whether there is any further support available or mechanisms for UC to be reviewed / increased.

He has no rights to ask the LL for a rent reduction, but can try to appeal to the LL's better nature.  A reduced rent may be preferable to a void, depending on what the local market and demand is like.  However, there seems little reason for the LL to agree, given the LL can simply come after you for payment as the guarantor.

BBLS may be available.  When did he start as sole-trader?

MattMattMattUK

queenofbargains said:

My relative’s workplace is closed due to lockdown. He is a hairdresser and self employed. He didn’t qualify for SEISS as too newly qualified. He will not receive any income so won’t have enough to cover all his bills. He does get a small amount of UC. If he can’t pay all his rent can the landlord legitimately ask me to make up the shortfall? 

As you are the guarantor then yes, you are legally liable for the amount unpaid, that is what you signed up to.

queenofbargains said:

Does he have any “rights” to request paying a lower amount of rent during lockdown? His landlord isn’t the easiest of people to deal with. 

No.

queenofbargains said:

Is he eligible to apply for any bounce back loan to get him through this current period?

Was he trading before 01/03/2020? If not then he would not be eligible, there are other eligibility criteria as well, however it is almost impossible to get a BBL at the moment, especially if one does not already have a business bank account with a bank which offers them. 
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/for-businesses-and-advisors/

queenofbargains said:

I helped him through the last lockdowns but now desperately trying to source any help that might currently be available. Thank you in advance!

Has he checked he is claiming the correct benefits that he is entitled to claim? As a renter he should find that UC covers his rent, bills and food, although it will not give him much left after that.
https://www.entitledto.co.uk/

macman

Did he start trading on or before 1/3/20? If so, BBL may be an option.

queenofbargains

Thank you SO much! Yes trading prior to 1/3/20. Will get him to check they’re getting the correct UC as it doesn’t cover rent, food and bills at all. I was pretty sure where I stood as a guarantor - thanks for clarifying. 

This forum is fantastic!! 

poppy12345

queenofbargains said:

 Will get him to check they’re getting the correct UC as it doesn’t cover rent, food and bills at all. I was pretty sure where I stood as a guarantor - thanks for clarifying. 

This forum is fantastic!! 

When he first claimed UC if he put all the correct information into the form i can't see how he wouldn't be receiving the correct amount of money for his circumstances.

If he's a single person with no dependant children then he would be entitled to the standard allowance of either £409.89 (over 25) or £342.72 (under 25) If he's under 35 and privately renting then he would only be entitled to the shared rate of local housing allowance, unless he's claiming a disability benefit such as PIP daily living or DLA mid/high rate care then he would be entitled to the 1 bedroom rate of LHA.

If he's over 35 then he would be entitled to the 1 bedroom rate of LHA.

LHA will most likely not cover all of his rent because it rarely does, especially a single person. Living off benefits very rarely covers all bills as well as food on top, it just depends what bills he has.

Using a benefits calculator will tell him what he should be claiming.

Also for the shortfall of any rent then he could apply for a dsscretionary housing payment from his local council. https://www.gov.uk/government/publications/claiming-discretionary-housing-payments/claiming-discretionary-housing-payments

He also needs to make sure he's claiming council tax reduction, which isn't part of UC and can be claimed from his local council.

queenofbargains

Thank you Poppy12345!

We now have a bigger problem.  The landlord has put a letter through the door saying he won’t be renewing his contract when it expires at the end of February. He has told him he needs the property for a relative who needs to isolate. Whether that’s true or not I don’t know. The contract was the second 6 month one he’s had. He will have been there a year at the end of Feb. He needs to find somewhere else as there is no other option but private rental. If he can’t find anywhere in the next six weeks, is he able to get an extension due to the current Covid lockdown situation? The landlord is also frightening him by saying he’ll get a bad reputation with other landlords if he doesn’t leave at the end of Feb. He’s a young man under 25. 

I would be so grateful for help in this matter. 

Thank you!

Grumpy_chap

This might well be worth posting on the House Buying, Renting and Selling Board.
The LL would need to serve proper notice and cannot simply evict at the end of a fixed term tenancy.  It does not sound like the letter necessarily meets that.  It is a common mis-conception that a fixed term tenancy just ends if nothing is done - it becomes a periodic tenancy.  Please read this: https://forums.moneysavingexpert.com/discussion/937335/a-tenants-guide-to-renting item F.
@greatcrested will probably have some very useful advice.
From a practical perspective, it may make for an easier life to look for alternative accommodation and may even be possible to get something more affordable.

queenofbargains

He became self employed 18/01/19
He wasn’t able to claim SEISS - could he now?

CKhalvashi

The end of February isn't happening for the LL, as a 6 month notice period hasn't been given.

BBL will be an option for him, as may SEISS if he is unable to work now. This should provide him with enough cash in the meantime to ensure that his living costs can be paid.

Exchanging part of the 6 month period for cash may or may not be an option, however 6 months rent (to your relative) and deposit returned in full on the day the keys are handed back (no bank transfer = no keys) should be a starting point for negotiations, with an aim to settle around the 3 month mark plus deposit, payable on the day of vacating the property.

If the LL becomes abusive, it's a police matter, as he will be protected from eviction as long as the rent is paid. If the LL won't pay, no property back for him without 6 months notice. Your relative has a right to this notice, so it's fair to be compensated to give up rights early.

Grumpy_chap

queenofbargains said:

He became self employed 18/01/19
He wasn’t able to claim SEISS - could he now?

The eligibility for SEISS 1, 2, 3 are all unchanged.  Based upon (up to) 2018-19 tax return and must be greater than 50% SE income.  Given he only became self-employed in January 2019, it is likely that income from earlier in the year is greater than 50% so ineligible.

Has he looked into securing a bounce back loan?  Does he have a business bank acocunt, which will make it much simpler to apply for BBLS if eligible.

Has he looked again at what benefits are available as set out by @poppy12345 ?

Was the letter from the LL prompted by a request to review rent?

I know you want to help, but this thread seems a little bit "panic-stations".  At the age of 25, what has your male relative done to take ownership of the situation himself?  Is it your son?