Tenant contract and guarantor?

blackiejones77

Hi, I am a private landlord in Wales who rents out one buy to let property. The couple who rent out my property have split up and the husband has moved out and has requested to take his name off the contract. The other partner wishes to remain in the property by herself and has requested her name to be on the contract. So far so good...

When we did initial credit checks as part of the tenancy agreement it was on both partners before they moved and all was good. The partner who wishes to remain has provided evidence via pay slips and universal credit statements that she can pay the rent and also says she has a 'verbal child maintenance agreement' payment every month with the partner who has moved out, all this will cover the rent.

The problem I have is that the partner living alone in my property would not now pass a credit check due to the fact she is partly in receipt of Universal Credit and if she defaulted on rent then it would no longer be covered by my insurance policy (because of failed credit check). Is there any way other than cancelling their tenancy to provide some sort of guarantor for rent into the contract?

Voyager2002

The simplest solution is for both parties to remain on the contract, meaning that they are both liable for any rent arrears. In effect the partner who has moved out is in the same position as if he were a guarantor: so long as the rent is paid it makes no different to him, but he is liable for any shortfall.

saajan_12

Yes, the ex partner or someone else could be there as a guarantor, agreeing to cover any of the tenant's obligations if the tenant were to fail to pay. The guarantor would need to have sight of the tenancy agreement, and then sign a deed of guarantee in the presence of a witness who would also need to sign. 

These can be tricky to get right, plus if its the ex partner, they would end up with less rights as a guarantor, since they can't unilatterally terminate the tenancy if the tenant isn't paying. So it might be easier to just leave it with both names as tenants. 

theartfullodger

Do nothing, you're better off as you are now.  See what extra they offer. 

blackiejones77

theartfullodger said:

Do nothing, you're better off as you are now.  See what they offer. 

I don't understand what you are saying?

HillStreetBlues

blackiejones77 said:

theartfullodger said:

Do nothing, you're better off as you are now.  See what they offer. 

I don't understand what you are saying?

Refuse the request, see what happens.

Olinda99

say no - the.person moving out is still liable and is thus effectively a guarantor