Guarantor question from a prospective guarantor

Then do not do it ,there is a risk

It’s interesting to read this thread, since in the absence of a third party guarantor, the landlord is always the guarantor - just one of the many joys of being a landlord!
However, here’s a link for non-landlords who are thinking of becoming guarantors.

I have been and am Guarantor to all my kids and step kids. The debt risk I take on is mitigated by parental relationship/responsibility and the ability to exit them and put them up back at home if it goes wrong. Some student contracts commit you for a year, jointly and severably - big potential worst-case risk, with extremely low likelihood. Anyway, for close family, it is worth it in my opinion and you can get invloved a lot more in mitigation.

For outside of family, I would not take the risk. A close friend I may help financially, but I have been burnt when it comes to renting out to friends of family with implied guarantor. That level of financial log term financial dependency puts a strain of friendships irrespective because it becomes an unequal relationship. So, for me it’s a no for non-family.

Interestingly and something you may need to note - some tenants who have guarantors seem to think the responsibility expires when the contract goes into periodical. It doesn’t - the Gaurntoor is on the hook perpetually unless they insist after the initial period that it is withdrawn, meaning the Tennant has to re-apply for a new contract without you as guarantor, risking evictions as the landlord may still consider them a risk. This is something for consideration - how long are you happy to be on the hook for?

I have a couple of tenants I have had to remind on this when late with a payment.

I do not believe this is right. The LL can get you a CCJ and then force you to make payment by bailiff, attachment of earnings, charge on your house, etc. The LL can do this each time he requests payment and you don’t pay. He does not have to evict the tenant.

Yes you can however, it depends on whether the LL agrees to it. I personally would not.

Thanks for all your replies, it seems the majority think the LL wont have to evict the tenant so getting a time limit written in if I can seems the most sensible option.

Thanks for your reply John, yes I was aware the guarantorship doesnt expire when it goes periodic, in fact that was what made me wonder how to prevent it from potentially going on forever should the LL choose not to evict. And yes this is family and they will never be able to get a place in their own right without some help hence me wanting to assist. I got help when I was younger and without it I would never have got started so I know how important it can be to have a helping hand.

1 Like

for my children I would do anything ,so I get this. I have helped with a, mortgage for one daughter, fortunate to be able to buy a place for another, cheap rent commercially for another . If we have the ability to help our children we must do it. when i first started out my Landlady gave me a private mortgage for my first home, I have never forgotten that, and we were not related. I am sure there are others on this forum who have done even more for their children. However for me it stops with the children

1 Like

As I explained he CAN, but he won’t. Firstly, it’s bad business. Secondly, how is he to explain to a judge that he is still renting the place to a non-paying tenant and demanding payment from a third party without mitigating losses.

1 Like

Well I have claimed from guarantors on several occasions and successfully got the debts paid.

To answer your question, with one tenant who rented from me for several years, I got the tenant and the guarantor 3 CCJs and later after trying everything to recover the money, that was owed to me from the tenant, I applied to the court for a charge on the guarantor’s property and combined all three CCJs and successfully after attending the court 3 times got charge of the property and eventually got paid a sum of around £18,000.

The judge at no point stated that I should have mitigated my losses and evicted the tenant although, I did eventually. As far as I know, there is no law saying that if the guarantor ends up having to pay the rent the LL must evict the tenant or words to that effect.

1 Like

Thanks Clint, thats interesting and very helpful. Looking more and more like I need to get this written into the guarantor terms or ask for a limit/renewable guarantor agreement. Thanks again

There is no legal requirement for a landlord to mitigate rental losses with fixed term tenancies.

This reply is the best one . The LL isn’t going to start eviction proceedings when he has a Guarantor who is legally obliged to pay the rent. If the Guarantor doesn’t pay the rent then its simply a MCOL against the Guarantor which will focus the Guarantors mind. If the Guarantor has any assets eg a house ,car, savings ,job etc he’s on the hook and the LL can just be patient as the only way he won’t get his money is if both the tenant and Guarantor both declare bankruptcy. So in answer to the question the Guarantors liability is very open ended if the tenant refuses to leave and the final bill will only be.known at the very end of any eviction process which could take years these days .