Can't believe no friends will act as guarantors - why do they think they have to pay?

[IWillAlwaysBeinaClubWithYouin1973]

I mean do they literally think I am going to refuse to pay my rent?

Split from H last year, my home of over 30 was sold I have the equity in the bank still because I've just pulled out of a house purchase and decided to continue renting. Found a new flat within days now I am actually scared I'm not going to get it, nor anything else to rent, unless I have a guarantor. New letting agents/landlord not accepting equity, they want a guarantor as well as 6 months in advance.

I've just stood guarantor for my youngest DD and her uni flatmate, didn't think twice. I know what's involved, I would have thought it's obvious you assume the person will pay their rent - surely you just use your judgement? But had some awkward conversations with friends - we're all professional people, but they actually they think its going to affect their credit rating, ability to get a mortgage and that it will "stretch them financially"? I work, have the equity from the house in the bank, I'm 60 bloody 2! How much of a flight risk do I appear to these friends?! So far 2 said no, 2 ghosting me, I need to provide info to the agent first thing in the morning. Going to move on further down my list but it's getting more and more tenuous. I feel a bit sick to be honest.

Do you know what a guarantor is/does or would you too think you stood a reasonable chance of losing £000s, or even that I was actually asking for money in some way? Is it something that people just don't feel comfortable to do?

This is all very interesting and helpful, thank you. This is where MN can be useful!

I have watched too much Judge Judy to ever co sign for anything!!

I wouldn't say that's normal. The NRLA deed of guarantee would only cease to apply if an entirely new contract were issued. The agreement can become periodic and the rent can be increased by using form something or other (forgotten the name of it) while keeping the guarantor on the hook.

Yay! :)

The Independent Landlord is a former lawyer called Suzanne (I think) who is a really reasonable, fair person, and she is worth following, both for LLs and tenants alike.

Quarterly inspections are a mandatory requirement of many property licensing which many Councils have introduced. I'm a landlord in Newham. My licence requires me to do quarterly inspections on all my properties and to send the reports to the Council.

Absolutely not.

I know someone who had no plans to not pay rent, was furloughed in covid and then nearly died of a health issue so couldn't work any other job during lockdown.

Two completely unpredictable things. You never know what life might throw your way, leaving you suddenly unable to work and your mates responsible for your rent.

And of course you'd do it for your child! That's not at all comparable.

Fair enough. But this was a private rent. And I've never come across it before, nor in my three tenancies since. Hence, I think that particular one was insurance-led.

What does he need a guarantor for then? He’s getting the entire term’s rent upfront. He can’t fail to get the money. Seems to me he’s just being bloodyminded.

I think you’ve had some harsh replies. I wouldn’t be offended if a friend asked me, even if the answer was no.
This thread has been an eye opener. How exactly is a 62 year old meant to find a guarantor? If I were in your position I’d be stuffed. I’m older than you, parents dead, few living relatives, no friends. If I had to leave DH and find a rental I don’t see how I’d do it.

Because guarantors have to be homeowners (as well as having a decent income) so if they go after them, the debt can be secured against their house.

Unsecured debt is always riskier as the person could die tomorrow thus no more income and if there’s no estate (or not enough to go around depending on other debt) then that’s it, they’ve lost the money.

I was going to say, sign up for a Uni coarse, take the Uni flat and get a guarantor! They are about £300 for the year for students!

Im sorry you are having a hard time, rentals are an all time low -

Could you stay with a friend instead? That way they can make a bit of extra cash and it gives you breathing space. I would let a friend stay, not sure as guarantor.

I'm talking about private rent. Property licensing is for private landlords and it's spreading quickly round the country. I think all of London is now covered by it. It contains many regulations with quarterly inspections being one.

Because there’s no guarantee OP will leave at the end of the term, is there? What happens if after the 6 months OP decides she’s not leaving nor is she paying anymore rent?

It can take over a year to evict someone so by having a guarantor, the landlord is ensuring someone is on the hook for rent past the initial 6 months if needs be.

"and it's spreading quickly round the country."

Good to know, thanks.

If eviction becomes necessary, the guarantor is needed to cover the time between the end of the fixed term (when the pre-paid rent runs out) and when the landlord manages to get the eviction through the courts. This is generally an additional 12 months or so from start to finish (assuming the landlord starts the eviction process as soon as the first rent payment is missed).

He is also covered for the cost of the eviction and any damage caused.

That’s a lot of money he could fail to get if something goes wrong.

OP is on the hook though. She has a pension so the landlord will be able to sue her.

When I have signed as a guarantor fir DC they haven't required proof I was a home owner and even if you are there might not be any equity on the property. I don't think the debt can be secured against the house unless the court orders it to be anyway. I have only been asked for proof of income.

I've been asked to do it previously and I said very sorry but no too. The thing is, I don't really know anyone's financial situation, and as a single parent on a very average income, I just can't take the risk of being responsible for someone else's rent. Why would I? I wouldn't even do it for a close friend or family member tbh.

It's a shit situation to be in though OP and I do empathise.

See my other response to you which explains it more.

I have responded to that.

1. They don’t require you to prove you’re a homeowner, you usually agree to appropriate checks and they then look you up on the land registry based on your address

2. Yes there may be no equity in the property but it’s still safer than unsecured debt, it’s about minimising risk rather than having a 100% guarantee

3. Yes debt can only be secured against a house with a court order, the person I was replying to was specifically talking about suing in court for the debt hence my response

Becoming a guarantor could affect your credit rating in that they will run a credit check on you. It should be a soft search but may still show up to lenders if you're applying for a new credit card/loan. It's a temporary thing rather than permanent.

Sorry didn’t realise you were the same poster! 😂

I’m quite a kind person and there’s lots I would do for friends but I would not guarantee for anyone but my kids or elderly parents one day because that is my duty. I would not take that risk when I have the responsibility to provide for my family and I couldn’t possibly do that if your rent fell to me for whatever reason.
its not your friends fault, don’t be annoyed with them. It’s the housing systems fault.

Gosh it sounds really hard to rent op
I thought the powers that be were making things better for tennants , allowing pets and things
Perhaps not tho
Is it supply and demand causing this ,so so many people needing to rent landlords can ask for ridiculous terms

I’m glad you got your situation sorted.

I wanted to sell and rent with equity and I didn’t know this was rule! So it’s a good thing I saw this thread and didn’t plow on with the idea. Is that a rule only when you are paying 6 months to a year upfront? Or is it even applied to the deposit and first months rent?