Holding deposit for rental and subsequent viewings

canaldumidi

reheat said:

I'm trying to assist our daughter, who is in the process of trying to find herself a new rental property.

Once an agent has taken a holding deposit, can our daughter then be turned down, and her deposit returned, simply on a whim of the agent or landlord? Or can she only be turned down if there are legitimate problems with her rental application? How much of a safeguard does paying a rental deposit give to a rental candidate?

See

Tenant Fees Act 2019: guidance for tenants (updated September 2020)

reheat

canaldumidi said:

reheat said:

Also a further question.

In the sample rental guarantor agreement I've been looking at (in the event I need to act as guarantor), it says ...

Should the Guarantor die during the currency of this agreement, the Guarantor’s estate will be liable as surety and co-principal debtor 

Would this mean that if I died, then my wife, who is co-owner of our house, would then effectively become the guarantor? And if she did not have the funds required were they to become due, would in the extreme case have to release money from her property, either by selling her home, or by taking out equity release on it?

I clearly states your 'Estate', not your wife.

Though of course if you wife is a Beneficiary of your Estate then what she inherits will be reduced by any debts of the Estate which have to be paid befoe distribution by the Executors.

What I'm not so sure of is liability once Probate has been granted, the Estate wound up and distributed. I can't see the Estate being liable ad infinitum as that would mean the Executors would have to retain for ever sufficient assets to pay any future liability that might arise. Again thus reducing what your wife inherits.

But liability could not pass to the Beneficiary.

Sorry, I realise I'm probably being a bit thick here, but I still don't properly understand.

If I die then my wife would automatically inherit everything, which is mostly the house, plus a few other odds and ends. But if as a beneficiary, the only way she could pay off my debts (say due to my being a rental guarantor) were to sell the house, then I need to understand if that clause in the guarantor agreement really does mean that or not.

Does that clause mean my wife might be legally obliged to sell the house if that were the only way she could settle any debt I might have been liable to as a rental guarantor, given there is that explicit clause in the guarantor agreement?

dimbo61

I have No idea which part of the country you live and the local rental market or the type of Rental your daughter is looking at but what seems to be the case for many parts of the country is the shortage of rentals.
My son is searching for a property to buy and there seems very few houses that tick all the boxes. Location, size, garden, bedrooms etc.
Now her age ? Job ? Credit checks and sometimes luck might help her get this rental.
20 years ago I was the 8th person to view a brand new 3 bed semi available for Rent and it was only my job that helped me secure the tenancy.
The Landlord will be the person that decides

canaldumidi

reheat said:

canaldumidi said:

reheat said:

Also a further question.

In the sample rental guarantor agreement I've been looking at (in the event I need to act as guarantor), it says ...

Should the Guarantor die during the currency of this agreement, the Guarantor’s estate will be liable as surety and co-principal debtor 

Would this mean that if I died, then my wife, who is co-owner of our house, would then effectively become the guarantor? And if she did not have the funds required were they to become due, would in the extreme case have to release money from her property, either by selling her home, or by taking out equity release on it?

I clearly states your 'Estate', not your wife.

Though of course if you wife is a Beneficiary of your Estate then what she inherits will be reduced by any debts of the Estate which have to be paid befoe distribution by the Executors.

What I'm not so sure of is liability once Probate has been granted, the Estate wound up and distributed. I can't see the Estate being liable ad infinitum as that would mean the Executors would have to retain for ever sufficient assets to pay any future liability that might arise. Again thus reducing what your wife inherits.

But liability could not pass to the Beneficiary.

...

If I die then my wife would automatically inherit everything, which is mostly the house, plus a few other odds and ends. But if as a beneficiary, the only way she could pay off my debts (say due to my being a rental guarantor) were to sell the house, then I need to understand if that clause in the guarantor agreement really does mean that or not.

Does that clause mean my wife might be legally obliged to sell the house if that were the only way she could settle any debt I might have been liable to as a rental guarantor, given there is that explicit clause in the guarantor agreement?

If you die your Estate takes over all your assets including the house, bank accounts etc.

Your Estate will be managed by whoever you appoint as Executor(s) in your will.

If you don't write a will, someone, usually a close relative, will have to apply to the Probate Office to be the Administrator of your Estate.

The Executor/Administrator will have to pay off your mortgage, your credit cards, and any other debts you have. They will also have to pay HMRC any Inheritance Tax that is due. They do not use their own money for this - they use whatever money, or assets, is in the Estate.

The Executor/Administrator also applies to the Probate Office for a Grant of Probate.

Once all the above is done, the The Executor/Administrator can wind up (close) and distribute the Estate. Assuming your wife is the sole Beneficiary in your will (if you have written one) it is at that point that she will inherit what remains in the Estate.

That clause applies to your Estate, and hence it is the The Executor/Administrator, not your wife, who would have to pay, using the assets in the Estate.

However, you are correct in that if there are no other assets other than the property then yes, your The Executor/Administrator might have to sell the property to pay the debt before distributing what remains to the Beneficiary (your wife).

reheat

canaldumidi said:

If you die your Estate takes over all your assets including the house, bank accounts etc.

Your Estate will be managed by whoever you appoint as Executor(s) in your will.

If you don't write a will, someone, usually a close relative, will have to apply to the Probate Office to be the Administrator of your Estate.

The Executor/Administrator will have to pay off your mortgage, your credit cards, and any other debts you have. They will also have to pay HMRC any Inheritance Tax that is due. They do not use their own money for this - they use whatever money, or assets, is in the Estate.

The Executor/Administrator also applies to the Probate Office for a Grant of Probate.

Once all the above is done, the The Executor/Administrator can wind up (close) and distribute the Estate. Assuming your wife is the sole Beneficiary in your will (if you have written one) it is at that point that she will inherit what remains in the Estate.

That clause applies to your Estate, and hence it is the The Executor/Administrator, not your wife, who would have to pay, using the assets in the Estate.

However, you are correct in that if there are no other assets other than the property then yes, your The Executor/Administrator might have to sell the property to pay the debt before distributing what remains to the Beneficiary (your wife).

Am I right in thinking that if there is nothing owing by me as guarantor, then the guarantee would just cease with no liability for my wife, and there would be no automatic transfer to my wife of being guarantor? Presumably our daughter would then need to reassess her tenancy status, and sort with her landlord if need be.

canaldumidi

Am I right in thinking that if there is nothing owing by me as guarantor, then the guarantee would just cease with no liability for my wife, and there would be no automatic transfer to my wife of being guarantor? Presumably our daughter would then need to reassess her tenancy status, and sort with her landlord if need be.

As I said earlier:

What I'm not so sure of is liability once Probate has been granted, the Estate wound up and distributed. I can't see the Estate being liable ad infinitum as that would mean the Executors would have to retain for ever sufficient assets to pay any future liability that might arise. Again thus reducing what your wife inherits.

But liability could not pass to the Beneficiary.

glennevis

If the possibility of dying whilst a guarantor bothers you take out a life assurance policy which pays out an appropriate amount (12 months rent?)

Slithery

glennevis said:

If the possibility of dying whilst a guarantor bothers you take out a life assurance policy which pays out an appropriate amount (12 months rent?)

Where did you get 12 months from? Most guarantor agreements carry on indefinitely until the tenancy is ended which is a timescale that the guarantor has no say in.