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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To not be a guarantee for my adult friend

89 replies

Rufusgy · 12/09/2015 07:33

I've got a very close friend that is moving homes. She's ask me to be her guarantee for the next rental place.

Firstly I'm not sure why she needs one apart from the rental on the new place is ridiculous high in comparison to her earnings. She needs someone that earns in excess of 45k and this is more than double what she earns.

She is wanting to rent a two bed flat in london on her wages. For what its worth I rent a one bed in a city much cheaper.

She says she can afford it from the "profit" on her buy to let's, Shes just buying another one. However I'm concerned as she sees any money left over as being profit from these buy to lets and is counting on nothing ever going wrong or no matainace. I think if something did go wrong, had a void or interest rates rose she would very quickly come a cropper.

So aibu to just say no? She's saying that she would never hold me to it, but the rental is probabaly close to her net income each month. Her parents can't be it, as they don't earn enough.

I haven't been asked to have a guarantee since I was a student. Are they doing this because of the low wage and high rent?

OP posts:

VimFuego101 · 12/09/2015 07:35

It could be because of the rent amount, or because they ran a credit check on her and she has something in her history which caused her to fail - CCJs, defaults, late payments. Being a guarantor is a huge commitment - I wouldn't do it.

CrohnicallyAspie · 12/09/2015 07:36

YANBU- it doesn't matter if your friend would never hold you to it, her LL or agent might. They're probably asking for a guarantor because they can't count the BTL properties as income.

sanfairyanne · 12/09/2015 07:38

I wouldnt be a guarantor for 99% of people i know. It is as if you are signing the lease yourself - it is you who will be chased for the money not her - and they are really hard to 'stop' until they move to a new house. Can she pay a big deposit instead?

Shenanagins · 12/09/2015 07:38

Don't do it unless you are happy to pay the rent which you would be liable for if she doesn't pay up.

londonrach · 12/09/2015 07:38

No way. You be liable for the rent if she defaults. are her btl registered tax wise.

Cabrinha · 12/09/2015 07:38

I don't even know why you're asking!
Are you happy to potentially pay her rent for the full duration of the contract?
No.
So the answer is no.

Original poster

Rufusgy · 12/09/2015 07:39

Ah I see thanks. It makes me sound like a bitch to say no. But as close a friend as she is we have very different attitudes to money, I'm a saver she's a but it on the credit card.

If I said I'm already a guarentor for my mums rent so wouldn't pass the credit check, is that something valid?

OP posts:

GaryBaldy · 12/09/2015 07:40

YANBU- it doesn't matter if your friend would never hold you to it, her LL or agent might.

^^ this.

You would be guaranteeing to pay her rent if she doesn't.

LieselVonTwat · 12/09/2015 07:40

No, don't do it. It isn't her who'd hold you liable anyway, it's the agency!

Bearbehind · 12/09/2015 07:40

She says she can afford it from the "profit" on her buy to let's, Shes just buying another one.

Something doesn't add up here.... How does someone who earns less than half of £45k have multiple BTL properties?

Stay well away from it.

Original poster

Rufusgy · 12/09/2015 07:42

Her buy to let's are registered for tax apparently, but she's never paid tax on them. Something to do with offsetting stuff, she pretended that her new kitchen in her flat was in the rental and wrote it off against that.

Thanks everyone I'm not going to feel guilty by not doing it. I'm very nervous about her financial situation.

OP posts:

DirtyMugPolice · 12/09/2015 07:42

Your initial reactor and feeling is right - yanbu. Nobody needs that kind of uncomfortable feeling in a friendship.

Spartans · 12/09/2015 07:42

I thought when you were a guarantor it wasn't up to the person you were doing for to hold you to it. It's for the agent/LL to hold you to it. So her promise of not holding you to it means nothing.

If she comes a cropper you could find yourself in the crap regardless of her actions. If I am right yanbu. I wouldn't do it, even if I was sure they could afford it. You never know what might happen in the future. I worry enough about what would happen if my business folded or I lost contracts. Don't want to be worry about what would happen to me if someone else did.

Original poster

Rufusgy · 12/09/2015 07:43

She has buy to let's as she's inherited some Money and stuck it in there.

OP posts:

Bearbehind · 12/09/2015 07:43

There's no credit check for guaranteeing a rental, only a public record check for CCJ's etc.

Just tell her you can't do it- end of.

Spartans · 12/09/2015 07:43

Have you posted about her before?

Scoobydoo8 · 12/09/2015 07:43

I would never be a guarantor for anyone.

I might lend them a bit of money then regret it when I don't get it back but being a guarantor means you can be taken to court to pay for stuff you have nothing to do with.

ObsidianBlackbirdMcNight · 12/09/2015 07:44

If she got a windfall and bought a btl with it, the banks will keep lending based on properties she already has. That's why btl is such a fucker for regular folks because people with no capital can buy properties based on capital in their other property and rent it out.

Scoobydoo8 · 12/09/2015 07:45

..... and how can she KNOW the lives of her tenants, that they'll never fall on hard times, break a leg, lose their jobs and end up not paying the rent??

ObsidianBlackbirdMcNight · 12/09/2015 07:45

If there was a property crash or something and her btl income tanked, she wouldn't have the option to not hold you to it. Don't do it.

londonrach · 12/09/2015 07:45

Run away op. Her tax situation is dodgy, she owns btl but rents. No way i suspect she default if her wage that low compared to rent. She needs to rent cheaper or sell her btls. You were right first time dont do this!

WizardOfToss · 12/09/2015 07:47

This reply has been deleted

Message withdrawn at poster's request.

ThomasRichard · 12/09/2015 07:47

The only people for whom I would act as guarantor are my DC. It is a huge commitment, YANBU. You don't need an excuse, just say you don't feel able to take on such a big commitment.

Bearbehind · 12/09/2015 07:48

She has buy to let's as she's inherited some Money and stuck it in there.

In that case I wouldn't just be saying no to being a guarantor, I'd be questioning the entire friendship as she sounds extremely selfish.

She's basically put all her money into property to secure her financial future but is asking you to risk yours in order to cover her back- sod that.

goawayalready · 12/09/2015 07:49

say no i refused to guarantee an ex of mines car loan we had just been bailed out by my mom and he wanted a new car now we could pay less for all the other bills (consolidation loan she was guarantor for me as it was in my name) anyway my instincts were right and he left me within a month i ended up almost defaulting on the loan because he refused to pay a penny my mom took it over for me in the end and paid it off out of her mortgage she forgave me the loan which was the nicest thing she could do for me but i would never do it for someone if i could not a, afford to pay it and b, they were my child (or parent)

but affordability is the key if you cant afford to cover it say no

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