Being a guarantor - don't do it!!

Good advice- thanks

Definitely good advice Anniepa thank you. That's a long time to be guarantor, I think there should be an opportunity to review the situation every three years or so. Circumstances can change so quickly.
I'm sorry you have this worry on your shoulders.

I didn't realise it was impossible to dissolve the agreement.

Could you ask your stepdaughter to use a guarantor company instead?

I didn't know that either ExDancer. It must be a worry for you Anniepa, I hope the situation never arises.

If your step daughter has paid the rent for 10 years and you have never been called on, she seems a reliable sort of person. Try not to worry. You could talk to her about it. She may have a bit of savings so if she lost her job she could cope.

We had a very lucky escape doing this. Daughter asked us to act as guarantor for her rent. Husband wanted to I said no as it is too legally binding. (We have been bailing her out for years)Daughter not happy but I didn’t trust her partner as he was very controlling - I was very pleased when they split up. He took everything away from her before the split her Bank cards, National Trust cards, passport.

Anniepa

After 10 years of being a guarantor for my step daughter's rent I am now in a position where I could not afford to pay out if she did not pay. Tbh this situation has not arisen and there is a reasonable chance that it won't in the future however now that I am a pensioner I would like to remove that worry from my life but find out that I can't. Once you sign up to be a guarantor you are stuck unless another guarantor can be found - which in this case is not going to happen. Please don't get yourself in this position however much you would like to help out.

I'm not sure, but I read somewhere ages ago that if the terms of the guarantee change, ie, the Landlord increases the rent - then it automatically terminates the guarantee. Or if a new tenancy agreement is entered into which changes the original terms, then the same applies.

It might be worth checking this out?

If your SD moves to another accommodation - is this likely? - then that should also end the guarantee.

It's not only the rent, but any tenancy obligations they can't meet.

So sorry you're in this pickle.

Sorry to read your post Anniepa and believe me I understand. I did with a member of my family and lived to regret it.

Interesting, that’s not how it worked for me. My ex husband initially acted as guarantor for my daughters first flat after leaving university. After a few months, he fell out with her ( a common problem as my daughter did not like his new wife) and contacted the property company to be removed at guarantor. My daughter got a letter saying she had to get another guarantor or her lease would be terminated in thirty days. So I stepped in, signed the paperwork and it was fine.

Not all landlords require guarantors, it’s just easier for them than do their own financial checks on prospective tenants. The property company we use to let out my mums house do similar checks of income that mortgage companies do so do not require guarantors.

i think they are demanded where prospective tenants do not have much credit history to check; so eg, students, or people leaving a relationship where all bills were previously in joint or partner's name.

I wouldn't do it for my own DC never mind SDC

Are you sure you can’t opt out? It doesn’t make sense, as there are many scenarios where you may need to...not just about having less money.

I would take advice.

Being a guarantor for the rent of a student or a family member should not be a problem because the only consequence is loosing the tenancy.
It’s the open ended guarantee for a house purchase that can go wrong in a big way that should be avoided at all costs.

Surely, if you are guarantor for her rent that would be all you would have to pay if she defaults. Quite simply, if she doesn't pay she loses her home and you lose one months rent??
Personally, I would never be guarantor for anyone under any circumstances.

We acted as rent guarantor for our son and DIL and were quite impressed with the information provided by the lettings agency as to what we were letting ourselves in for - definitely not a decision to be made lightly. The Guarantor Deed was also clearly written and we felt it was fair - included a review after 12 months and also confirmed that if the tenancy changed, eg rent increase, then it automatically ended. They have been in the tenancy almost 5 years now and our guarantor arrangement ended at the 12 month point - landlord happy it was no longer required. Am surprised that you would still have guarantor liability after 10 years unless this is for a number of different tenancies.

but if they default and refuse to pay the rent, you could be liable for many months unpaid rent plus court costs /enforcement costs if they are evicted.
it could severely damage your own credit rating.

Too late, have already been guarantor for my daughter for this year's rented accommodation. I'm sure she'd tell me if she was unable to meet her rent payment.

One of my late husband's friends was persuaded to act as guarantor to his wife's brother in the late 80's. A very bad experience for him, poor man ended up having to sell his home to pay the BIL's £20K debt. His marriage broke up, and he left the area. We saw him at King's Cross station about twenty years later, he had aged beyond his years.

You can tell the Landlord that you no longer wish to be a guarantor when your daughters lease is renewed,( usually annually).

If she has paid her rent for 10 years it shouldn’t be a problem, if it is a problem then your daughter will need to find a new guarantor, but presumably after 10 years she will have a decent credit score and all should be ok.

* You can tell the Landlord that you no longer wish to be a guarantor when your daughters lease is renewed,( usually annually).*

You can’t simply tell the Landlord you no longer wish to be guarantor. The guarantor has no legal right to end the agreement and it’s a common misconception that a guarantor will only be liable for payments for the initial period of a lease agreement - commonly 6 or 12 months at a time. Liability as guarantor will not just run out at the expiry of the fixed term, but will continue through subsequent renewals of the lease until the end of the tenancy. To be released from liability, the tenancy must be brought to an end via formal notice given by the landlord or tenant.

Sorry - posted too soon. You can ask the landlord to release you from liability - formally in writing - but they are entitled to refuse. Unless there is a specification in the agreement to end guarantor liability under certain circumstances, legally it will remain until the tenancy is formally ended by either landlord or tenant.

I would not be Guarantor for anyone.

We have been guarantors for our five children many times. For four of them this was never a problem -they were sensible with money and paid their bills. One son however it was a different story- I was on first name terms with the letting agents! After paying his debts a couple of times , at least, we refused to be guarantors for him ever again when he swapped rental property the next time.

I'm a guarantor for my sons rented flat as is his girlfriends Mother. I've never had to bail him out ever and it's not a high rent so between the two Mums we could manage it if it was ever necessary. I do know he is saving very sensibly so I'm not worried. The only reason he needed one was because he had no credit rating as he's never owed anything and hadn't got even a credit card and has never been overdrawn. A good deal more sensible with money than I was at his age!