Risk of being guarantor / Signing student tenancy / EU citizen

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    Risk of being guarantor / Signing student tenancy / EU citizen

    I had a call from my cousin, who is a Spanish citizen. I was asked, if I could be a guarantor for his daughter, who has been studying in Brighton. He wondered if this was something easy or complicated.

    For last year, she was in a student let. She only had to pay 3 months rent in advance.

    For this academic year, she has found another place. This new agency is asking for 12months rent in advance. He is frustrated by their terms. Those with UK guarantors, only need to pay one month's rent in advance. They don't accept non-UK guarantors.

    There are 4 girls in total. The other 3 students are British and have parents as guarantors.

    The rent for the entire property is £25k per year.

    I was n't keen on being a guarantor, mainly due to the hassle of paperwork. I did n't want to disclose my personal finances.

    I also remembered the tenancy clauses tend to be "jointly and severely liable". So I did n't want to be liable for the entire £25k i.e. all four students. I can vouch for my cousin, but I can't vouch for the other 3 students.

    I did express some concerns about signing a new student tenancy, given that we may have another lockdown, if cases explode. Given COVID-19, I don't know what happens. Will students be entitled to student financing? Or if their parents (guarantors) loose their jobs. There are many unknowns.

    Many of the lessons will be online. However, the daughter is determined to go to Uni and salvage something of student life.

    What are people's thoughts?


    #2
    It would not be something I would do for all the reasons you have outlined, unless 25k is pocket change it could prove to be very expensive.

    Comment


      #3
      It is the same old story as usual. If it was not such a palava getting rid of rogue or non-paying tenants, then life would be a lot easier for people like your cousin. But those who make the laws don't give a stuff, because your cousin is not the their type of tenant.

      Comment


        #4
        Tricky to refuse family but maybe point out that you don't want to be liable for the whole lot. Could you maybe offer to help out with the 12 months in advance - £6250?

        Comment


          #5
          You could ask for the tenancy or guarantor agreement to be altered to limit your liability to your neices debt only.

          Comment


            #6
            I signed one because I had had no sight of the AST and think it would be unenforceable. Additionally all tenants in the shared house have to have guarantors which also dilutes risk (I know my son will pay what is owed and if he doesn't I will but as above I don't want to be liable for the rest!)
            Unshackled by the chains of idle vanity, A modest manatee, that's me

            Comment


              #7
              Cousin? I'd think twice before doing it for a sister.

              My cousins are jerks.

              Comment


                #8
                Originally posted by Section20z View Post
                Could you maybe offer to help out with the 12 months in advance - £6250?
                I don't think he needs financial help. He wanted to pay quarterly or even monthly. Spain is coming out of lockdown and everyone is licking their wounds.


                Comment


                  #9
                  There are a number of options - probably the most common is for the landlord to accept that they get 3 guarantors. This is only possible if the parents of those 3 have enough income to cover the rent. The other parents will be happier with this if 3 months is paid up front.

                  Some universities will act as guarantor, that is rare.

                  There are companies that do this for a fee e.g. https://ukguarantor.com/about-us/ and https://www.housinghand.co.uk/guarantor-service/

                  A lot of guarantor agreements are not worth the paper they are not written on. My child's landlords didnt always send me a copy of the AST before I virtually signed the guarantor agreement, they were fortunate they had decent tenants and never needed to try and enforce those.

                  I didnt even want to guarantee my child's friends, I would find an excuse not to do that for a cousin. Most agreements mean you guarantee not only rent but any damage they do, this is a very big ask for your cousin.

                  Comment


                    #10
                    As above, in my case I have not seen the AST and virtually signed the agreement....
                    Unshackled by the chains of idle vanity, A modest manatee, that's me

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