questions on being a guarantor

AdrianC

GDB2222 said:

AdrianC said:

GDB2222 said:

I see no reason why you should give an unlimited guarantee. If you limit the amount to say £5k, and the landlord accepts that, you may feel that you can sign it. But, an unlimited guarantee is just not something anyone should sign. 

There is no compulsion on anybody to sign a deed of guarantee.

Equally, there is no compulsion on the landlord to accept a tenant without a guarantor...

Which is why I suggested that a reasonable compromise is to limit the guarantee. 

I understand that for student HMOs it is possible to have a guarantee that is limited to just a share of the rent, rather than accepting liability for all the tenants. 

As you say, the landlord will not necessarily accept that, but that doesn’t mean that the op should accept a silly liability.

The ball is in the landlord's court. It's up to them to decide what's "reasonable", not the guarantor.

After all, if the guarantor trusts their offsprog implicitly, there's not going to be any outlay under the guarantee, right, let alone one hitting the cap... So why is the guarantor trying to cap their liability? What do they know about the putative tenant...?

Don't need the risk. Next putative tenants, please!

GDB2222

AdrianC said:

GDB2222 said:

AdrianC said:

GDB2222 said:

I see no reason why you should give an unlimited guarantee. If you limit the amount to say £5k, and the landlord accepts that, you may feel that you can sign it. But, an unlimited guarantee is just not something anyone should sign. 

There is no compulsion on anybody to sign a deed of guarantee.

Equally, there is no compulsion on the landlord to accept a tenant without a guarantor...

Which is why I suggested that a reasonable compromise is to limit the guarantee. 

I understand that for student HMOs it is possible to have a guarantee that is limited to just a share of the rent, rather than accepting liability for all the tenants. 

As you say, the landlord will not necessarily accept that, but that doesn’t mean that the op should accept a silly liability.

The ball is in the landlord's court. It's up to them to decide what's "reasonable", not the guarantor.

After all, if the guarantor trusts their offsprog implicitly, there's not going to be any outlay under the guarantee, right, let alone one hitting the cap... So why is the guarantor trying to cap their liability? What do they know about the putative tenant...?

Don't need the risk. Next putative tenants, please!

You are rather assuming that it's a seller's market.  Otherwise, it's a negotiation.

As to trusting the offspring, the real issue may be the co-tenants defaulting.

Annisele

Has your friend (or more to the point, your friend's daughter) looked properly at alternatives to asking you? For example, if you google "'[university name] rent guarantor scheme" you might find that this particular university will have some scheme where the university itself acts as guarantor for internationals students (for a fee...).

euanovsky

Hello all - thanks for all your comments. I'll take them onboard and speak to my friend to see what the best course of action is