PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

2 guarantor questions

Options
JJMerida
JJMerida Posts: 1 Newbie
in House buying, renting & selling
1. I have recently bought a property and, because I'm a student and don't have a salary, have to keep it as a buy-to-let. I'm also about to move into a shared rented property and was told by the landlord that I would still need a guarantor. My parents can do this, but I'm not sure I understand why I would still need one, given I'm a homeowner?

2. The landlord has asked that the agreement and clauses be signed by a solicitor (or someone in the solicitors office). It is usual for a solicitor to be specified? I thought it could be anyone official who could vouch for your guarantors identify, such as a GP or accountant.

Help/advice is much appreciated.
«1

Comments

  • eddddy
    eddddy Posts: 16,448 Forumite
    First Anniversary First Post Name Dropper
    Options
    Unfortunately, the bottom line is that the landlord can impose whatever terms they choose.

    If you don't agree to their terms, you would have to find another property with a different LL.

    And this LL would have to find a different tenant, who will agree to their terms.


    Although, maybe you can try negotiating with this LL, to see if they will relax/change their terms (because you own a property).
  • theartfullodger
    theartfullodger Posts: 14,603 Forumite
    Name Dropper First Anniversary First Post
    Options
    See what you are being asked to sign: Surprising how many landlords/solicitors don't understand what is required for cast-iron guarantees.


    If you think the documented guarantee is non-enforceable DON'T TELL LANDLORD!


    See..
    http://england.shelter.org.uk/legal/housing_options/paying_for_accommodation/guarantors
  • mchale
    mchale Posts: 1,886 Forumite
    Options
    If you can, make sure the guarantor only applies to your room not the communal areas as you could be liable for damage caused by other housemates.
    ANURADHA KOIRALA ??? go on throw it in google.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    JJMerida wrote: »
    My parents can do this, but I'm not sure I understand why I would still need one, given I'm a homeowner?

    Income is what matters not what you own.
  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
    First Anniversary First Post
    Options
    mchale wrote: »
    If you can, make sure the guarantor only applies to your room not the communal areas as you could be liable for damage caused by other housemates.

    That's a very difficult one to insist upon.

    I agree that you should be looking at guarantor to only the named person you are supporting,however damage in communal areas is usually split however many ways equally unless someone specifically admits the damage.
    in S 38 T 2 F 50
    out S 36 T 9 F 24 FF 4

    2017-32 2018 -33 2019 -21 2020 -5 2021 -4 2022
  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
    First Anniversary First Post
    edited 21 May 2018 at 5:12PM
    Options
    Thrugelmir wrote: »
    Income is what matters not what you own.

    TBH I think that there are many combinations of what constitutes needing a guarantor and its almost whatever the LL sees fit to ask for.

    I have recently had to set up one for the offspring at uni next year.
    The LL requested that the guarantor was a homeowner and in employment,no witness signature needed and certainly not rubber stamped by a solicitor.

    I am not "in employment " as such as I too am a LL of several properties and it wasn't until I pointed out to the other LL that his own guarantor conditions would presumably no allow him to act as anyones guarantor as I assumed him to be in the same position as me that he relented and allowed me to act as guarantor.
    in S 38 T 2 F 50
    out S 36 T 9 F 24 FF 4

    2017-32 2018 -33 2019 -21 2020 -5 2021 -4 2022
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Name Dropper First Anniversary First Post
    Options
    JJMerida wrote: »
    The landlord has asked that the agreement and clauses be signed by a solicitor (or someone in the solicitors office). It is usual for a solicitor to be specified? I thought it could be anyone official who could vouch for your guarantors identify, such as a GP or accountant.
    Are they actually insisting on the solicitor giving the guarantor legal advice about the guarantee? Or just to act as a witness?

    In any event, it's up to the landlord what hoops they want to make you jump through.
  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    As explained, a landlord can ask for whatever they want. You can agree, refuse, or try negotiating.

    To be legally valid, a Guarantor Agreement should be Executed as a Deed. That means:
    * It must specify that it is a Deed
    * all signatures must be witnessed (does not matter by whom)
    * the guarantor must fully understand what they are guaranteeing - so must have been given a copy of the tenancy agreement.

    Of course, the landlord may also want
    * to be sure the guarantor is who he says he is (so some kind of ID check)
    * be sure the guarantor is worth having eg a home-owner, and/or income-earner, not a bankrupt etc





    No solicitor required, though
  • TamsinC
    TamsinC Posts: 625 Forumite
    Options
    G_M wrote: »
    As explained, a landlord can ask for whatever they want. You can agree, refuse, or try negotiating.

    To be legally valid, a Guarantor Agreement should be Executed as a Deed. That means:
    * It must specify that it is a Deed
    * all signatures must be witnessed (does not matter by whom)
    * the guarantor must fully understand what they are guaranteeing - so must have been given a copy of the tenancy agreement.

    Of course, the landlord may also want
    * to be sure the guarantor is who he says he is (so some kind of ID check)
    * be sure the guarantor is worth having eg a home-owner, and/or income-earner, not a bankrupt etc

    No solicitor required, though

    Ah, this shows that the two contracts we signed for our daughter whilst at uni as guarantors were useless then - digitally signed them online, so no witnesses, and certainly neither were deeds of trust. Interesting.:cool:
    “Isn't this enough? Just this world? Just this beautiful, complex
    Wonderfully unfathomable, natural world” Tim Minchin
  • eddddy
    eddddy Posts: 16,448 Forumite
    First Anniversary First Post Name Dropper
    Options
    TamsinC wrote: »
    Ah, this shows that the two contracts we signed for our daughter whilst at uni as guarantors were useless then - digitally signed them online, so no witnesses, and certainly neither were deeds of trust. Interesting.:cool:

    Maybe.

    So if your daughter owes the LL money and doesn't pay (and you don't pay) that might mean the LL has to get a CCJ against your daughter.

    The LL might then choose to apply to freeze her bank account, seize her assets (e.g. car?), make an attachment of earnings.

    (e.g. Her first job after graduating, and her employer is contacted by the court to say she hasn't paid her debts, so money must be deducted from her salary.)

    I guess some parents might prefer to volunteer to pay their child's debt to the LL before it reaches the CCJ stage.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards