Agreeing to be a guarantor is an important decision with legal and financial implications.  Therefore, it is important you fully understand the extent of what you are guaranteeing and for whom you are providing the guarantee before you sign our guarantor form.

Situations when we require a guarantor

Guarantors may be required where the tenant is in one or more of the following situations: -

• Tenants who are students or sharing a tenancy with someone who is not a relative/partner
• Tenants in receipt of Housing Benefit
• Tenants with a County Court Judgment against them or with other credit issues
• Tenants who have come into the UK from other countries and are unable to prove a credit record
• Tenants who are unable to provide satisfactory references
• Where there are concerns the tenant may struggle to meet the monthly rental payment.

A Guarantor must be able to prove they are in a position to take on the responsibilities of a guarantor and must therefore be: -

• A UK resident and ideally a home owner
• Able to pay the rent they are guaranteeing, either because their income is sufficient to cover it or they have adequate savings
• Able to satisfy our credit check criteria
• If not found on the Electoral Roll, they must be able to provide Proof of Residency by another means
• Able to sign the Guarantor Agreement at least 24 hours before the tenant signs the Tenancy Agreement.  Please note that this does not affect your statutory rights under The Consumer Protection (Distance Selling) Regulations 2000.

The Guarantor’s guarantee

When a tenancy is entered into, the occupants named on the Tenancy Agreement are no longer individuals but are considered collectively as one entity known as the “Tenant”.  As such, they are jointly and severally liable for the rent and the costs of any damage caused by the tenant during the tenancy. The responsibilities and liabilities of the guarantor are also deemed to be “joint and several”. This means that, if more than one tenant is included on the Tenancy Agreement, the guarantor’s liability extends to guaranteeing any losses caused by any or all of the tenants named on the Tenancy Agreement.

By signing a Guarantor Agreement, the guarantor agrees to indemnify the Landlord against all costs, losses and expenses arising through any breach of the Tenancy Agreement by the tenants named on the Tenancy Agreement, including rental payments.  The guarantee lasts for the entire length of the tenancy including any extension, continuation or renewal of the tenancy.  The guarantee will also apply to any rental increase agreed by the Landlord and Tenant during the tenancy.

Recovering losses

We will attempt to recover outstanding rent payments and/or losses from the tenant.  However, if this is unsuccessful, the guarantor will be responsible for settling any debts outstanding from any of the tenants named on the Tenancy Agreement.  The Guarantor Agreement is a legally binding contract and if you do not fully understand the nature of the agreement, you should take independent legal advice before signing the contract.