Many Letting Agents will ask for the guarantor information when letting a property, this acts as a safeguard for Landlords to ensure that their rent is paid in accordance with the tenancy agreement. Landlords have more legal standing to obtain their rent arrears and any additional costs incurred through the court when a guarantor is in place.
When paying your initial fees for your tenancy, you will have to pay referencing fees for yourself and for your guarantor, these fees cover any credit checks and additional administrations fees. that Letting Agents or Landlords charge.
Most Landlords require that a guarantor resides in the United Kingdom, has a full time job and is usually a home owner. The guarantor information will be checked thoroughly by any credit checking agencies.
The agency will consider the reliability of the guarantor information that they have been supplied with before making a decision of their suitability.
Most guarantors will not be aware of their liabilities in regards to joint tenancies, because they do not always read all the terms on the guarantor form.
The guarantor information is important as this could affect their credit rating in future. On a joint and several tenancy any of the guarantor’s are liable, regardless of how many tenants rent the property.
Should you agree to be a guarantor for your child, friend or relative and they are sharing a property with others, you as a guarantor are liable for the whole rental amount, not just the portion payable by your said child, friend or relative if any of the joint Tenants default on the rent payment.
Any liability of the guarantor will only cease when the tenancy ends, either by mutual agreement or through a court possession order. If the tenancy falls into a periodic tenancy then the guarantor is still liable for any overdue or unpaid rent.
There are two alternative ways to sign up a guarantor, they can be included in the actual tenancy agreement or they can be added as a “special deed of guarantee”. Any demands relating to the tenancy must be made against the guarantor in writing at the address provided on the form they have signed.
Should the unfortunate circumstance arise whereby a claim is warranted against the Tenant, all damages must be itemised. All invoices, receipts or estimates must be obtained for the repairs that need undertaking. Should the guarantor not adhere to the agreement and refuse to make payment, the Landlord will pursue the matter through the County Court in the appropriate way of which the guarantor will be liable for all costs.
Our professional advice is that the guarantor should always read the guarantor information thoroughly. Reading the guarantor information will give a greater understanding to the guarantor, so that they are aware of their guarantor liability and responsibility towards an agreement that they sign on behalf of the tenant/s.
If ever in doubt about the implications of the guarantor information you have been given, we would advise that you seek legal assistance, rather than just sign the agreement. Please remember that if you sign an agreement, you are bound by it’s terms.