Not sure if I can post it in the landlord legal section, but any help would be appreciated
I have been asked by a very close relative if it is okay to be the guarantor for renting, since currently he is applying with his own proofs since spouse and kids are yet to travel to the country and they wanted the house ready before that and estate agents wanted a guarantor, in few months his spouse will be joining and will be start working too. Once they both are having bank statements they will no longer need a guarantor. So at this point if they create a new rental agreement in the names of both of then, would that end my guarantor agreement ? My goal is to get out of the liability once the spouse joins and has the formal payslips . Any advice on how to deal with this?
Yes, a new tenancy agreement without you as a guarantor would mean your liability would end. However, there’s no guarantee that the LL would be happy to create such an agreement and then you would be liable as long as your close relative lives at that property.
It can take years from moving to the UK to establish a good credit score and therefore convince a LL that they don’t need a guarantor when they offer you a tenancy. Simply getting a job and a bank account is not sufficient proof that you can manage money and reliably pay rent.
If I were you, I would recommend that you only agree to be their guarantor if you are happy being liable for their tenancy for many years to come.
“Yes, a new tenancy agreement without you as a guarantor would mean your liability would end.”
However, I don’t know of an agent who would offer a new agreement that has a Guarantor, for an agreement without one. This would usually be 12 months and then roll. This means if no new terms are agreed, the tenancy rolls and you stay a guarantor for the full length of the tenancy, until they leave. This can be a year or two or 10+, you will have no control over this. My friend has a tenant with a guarantor of around 10 years now. It’s quite likely, the Guarantor has forgotten their obligations by now. However, if the tenant stops playing for any reason, the Guarantor is liable for unpaid rent, even after 10 years on a rolling contract. Even if you have fallen out and are no longer friends, even if you move. You are in a contract.
If you’re okay with this, go ahead. But life does throw you curveballs. Would you be able to pay for 2 homes, should you need to.