Guarantor for Tenancy

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Guarantor for Tenancy

    Hi

    Could someone explain to me how a guarantor for a tenancy works?

    Can anyone recommend going down this route?

    I've had my property advertised and have had lots of calls but the majority were from tenants in receipt of DSS/HB and some have said they have a working guarantor (and homeowner) as well as cash deposit and months rent in advance.

    Many thanks.

    #2
    A guarantor signs a legal document that promises that the tenant will pay everything they are meant to. By itself that promise is worthless, so the guarantor promises that they will pay if the tenant doesn't.

    It is important that the paperwork is legally watertight (and best if executed as a deed) so it is probably worthwhile getting a solicitor to create it for you.

    Comment


      #3
      The G should be checked more closely than T ie work refs and Land register for ownership of property. Often your only recourse to obtain T debt from G is by placing a charge on Gs property, to be paid if/when property is sold.
      Also G should be offered a copy of Ts AST a few days before signing a Deed of Guarantee. eg send Deed & AST to G for signing and returning prior to T signing the TA

      Comment


        #4
        Originally posted by mariner View Post
        The G should be checked more closely than T ie work refs and Land register for ownership of property. Often your only recourse to obtain T debt from G is by placing a charge on Gs property, to be paid if/when property is sold.
        Also G should be offered a copy of Ts AST a few days before signing a Deed of Guarantee. eg send Deed & AST to G for signing and returning prior to T signing the TA
        Thanks for this. If I do end up going down the guarantor route, I will make sure I follow the advice given by yourself and snorkerz.

        Comment

        Latest Activity

        Collapse

        • Reply to Tenant in situ
          by jpkeates
          It's almost impossible to reset the tenancy with a new agreement.
          The buyer will inherit the previous tenancy at the same point that they're able to let the property on the new agreement, so any new tenancy is going to be a follow on tenancy.
          So things that need to be done at the very start...
          24-01-2022, 14:57 PM
        • Tenant in situ
          by Bridge2020
          I’m looking at buying another property to rent out. The one I’m looking at has a tenant in situ. I have seen a copy of the AST and payments to the agents.
          Anyone have any experience of this please ?...
          20-01-2022, 08:29 AM
        • Reply to Rent a Room scheme
          by jpkeates
          You're really going to struggle with that not being a tenancy.
          If the tenant can lock the door to exclude you, and they could wash in a sink, that's likely to be a dwelling house.
          24-01-2022, 14:52 PM
        • Rent a Room scheme
          by lgr001
          I have a mobile home next to my property. Do I qualify for the rent a room scheme if I rent out the mobile home but the occupant must use the shower and washing facilities in my house i.e. so that the mobile home is not a separate unit of accommodation? There is a provision by the council that it...
          24-01-2022, 14:25 PM
        • Reply to Regulated Tenancy
          by AVJ113
          Yep, that's exactly what has happened....
          24-01-2022, 14:12 PM
        • Regulated Tenancy
          by AVJ113
          I have a basic understanding of regulated tenancy. I'm looking to buy a property with a tenant in situ on a regulated tenancy. In the real world, what are the pros and cons? Is there anyone with any experience?
          24-01-2022, 13:38 PM
        • Reply to Regulated Tenancy
          by DoricPixie
          How basic is your understanding?

          From your other thread you are seeing a broker about a BTL mortgage. I think you will struggle to secure a BTL mortgage against a property with a Regulated Tenancy in place....
          24-01-2022, 14:05 PM
        • Reply to Regulated Tenancy
          by jpucng62
          Unless it is REALLY cheap - don't!

          I inherited a property with a regulated tenant. The rent can only go up once every 2 years, by a specified amount, although more often if you improve the property, but it will always be cheap.

          Most tenants have been in a very long time and...
          24-01-2022, 13:58 PM
        • Reply to Tenant in situ
          by Interlaken
          Agree with above but if the property is in poor condition and the tenant elderly (or could be child of tenant who may be middle aged) then steer clear. I would definitely speak with the tenant.
          24-01-2022, 13:30 PM
        • Reply to How to track down landlord
          by kelbol
          Emailing means the person may or may not receive it, and if they do, they may or may not reply. I didn't want to wait around to find out if I do get a reply. I wanted to get a phone number.
          In any case, I managed to get hold of the Landlord via the business. The ball is now in his court.
          ...
          24-01-2022, 13:15 PM
        Working...
        X