questions on being a guarantor

euanovsky

I have been asked to be a guarantor of a friend's daughter in university. My friend has moved away from the UK and the estate agent requires a guarantor in the UK. I know my friend fairly well and I trust him so I expect I'll only be a guarantor in name only. 

The estate agent has now provided a guarantor deed for me to sign. My friend's daughter is living in an HMO and in the deed it seems that I'm agreeing to be the guarantor for other tenants and that I will be liable to any rents that are not paid. There is a cover letter which says I am only going to be the guarantor of my friend's daughter and not for other tenants but that cover letter doesn't form part of the deed. I have reached out to the estate agent and they reassured that I would only be guaranteeing for my friend's daughter but then by law a guarantor is responsible for the non payment of rent for the whole property, which is why the deed was drafted that way and that each of the other tenants have their own guarantors too.

I'd just like to double check if this is normal as this is my first time being a guarantor.

Thanks a lot.

davilown

You’re net ours never a guarantor in name - YOU are the guarantor for this individual.

Personally, I have only done this for my children and refused for anyone else.

Grumpy_chap

If you are to be guarantor for the friend's daughter, before you sign, get the friend to deposit an amount in your bank account that covers the full sum to which you could be exposed in the event that the daughter defaults.  As the friend is only asking because of the need for practical convenience, I am sure the friend will agree.

moneysavinghero

Yes it's normal for Estate / Letting Agents to be sneaky. If you sign that deed you have liable for the total rent, all you can do is cross your fingers and hope the LL will only come after you for the friends daughters portion of it.

pbartlett

you need to see the tenancy agreement. 

if the house is rented to the group as one, then it is likely each tenant is jointly and severally liable for the whole rent.

this means that in the event of default of all.or any of the others, the daughter (and thus you) would be liable for everything, including unpaid rent, utilities, phone bills, amd damage caused to the property, etc

you cannot be a guarantor in name only. You are either a guarantor or you are not. The letter is  irrelevant - it is what is in the deed that counts.

you are letting yourself into being responsible for all and any debts the whole group run up.

NinjaTune

Don't do it.  I've been on a few forums (including this one) where unsuspecting guarantors ended up in thousands of debt through no fault of their own.

Does your friend have no family in the UK they can ask to be a guarantor?

As said, if the flatmates are flaky you will also be responsible for their debts.

Your friend should liaise with the agent to find a viable alternative, i.e. rent in advance.

This might sound harsh but not your child, not your responsibility.

lookstraightahead

pbartlett said:

you need to see the tenancy agreement. 

if the house is rented to the group as one, then it is likely each tenant is jointly and severally liable for the whole rent.

this means that in the event of default of all.or any of the others, the daughter (and thus you) would be liable for everything, including unpaid rent, utilities, phone bills, amd damage caused to the property, etc

you cannot be a guarantor in name only. You are either a guarantor or you are not. The letter is  irrelevant - it is what is in the deed that counts.

you are letting yourself into being responsible for all and any debts the whole group run up.

This. We've been our daughters guarantor at uni for the last 3 years. You are responsible for all, and there's usually no way of changing it as that's just 'how it is'. 

You are taking a risk most parents take - but you do have a choice in saying no.

AdrianC

euanovsky said:

I have been asked to be a guarantor of a friend's daughter in university. My friend has moved away from the UK and the estate agent requires a guarantor in the UK. I know my friend fairly well and I trust him so I expect I'll only be a guarantor in name only.

Never mind her parent, do you trust HER?

The estate agent has now provided a guarantor deed for me to sign. My friend's daughter is living in an HMO and in the deed it seems that I'm agreeing to be the guarantor for other tenants and that I will be liable to any rents that are not paid.

You are guaranteeing her debts arising from her tenancy.

Is she in an HMO, or is she sharing a single tenancy with housemates?
If she has a tenancy JUST over her room, then you are guaranteeing her liabilities, which are just for her room.
If she is part of a joint tenancy with others, then you are guaranteeing her liabilities, which are joint and several for the entire property.

So extend that first question to "Do you trust her housemates?"

There is a cover letter which says I am only going to be the guarantor of my friend's daughter and not for other tenants but that cover letter doesn't form part of the deed.

It isn't part of the deed, so it isn't part of the legal guarantee...

I have reached out to the estate agent and they reassured that I would only be guaranteeing for my friend's daughter but then by law a guarantor is responsible for the non payment of rent for the whole property, which is why the deed was drafted that way and that each of the other tenants have their own guarantors too.

Even if they do have, every tenant is jointly and severally liable - which means every guarantor is, too.

So if every other guarantor turns out not to have the money or not be traceable, you're on the hook.

AdrianC

Grumpy_chap said:

If you are to be guarantor for the friend's daughter, before you sign, get the friend to deposit an amount in your bank account that covers the full sum to which you could be exposed in the event that the daughter defaults.

Which could be several months rent plus thousands in damages...

user1977

Also bear in mind that your guarantee (even if it's never called upon) is a potential liability which is likely to be taken into account when you apply for lending etc.

GrumpyDil

user1977 said:

Also bear in mind that your guarantee (even if it's never called upon) is a potential liability which is likely to be taken into account when you apply for lending etc.

I can't ever recall having been asked that question on any previous mortgage or loan application. Genuine question is this really true because if you answer no there is no way of verifying the existence or otherwise of any guarantee you gave signed?