Guarantees For Residential Property Tenancies
Many residential landlords require some form of guarantee from new tenants.
Landlords, tenants, and guarantors must obtain expert legal advice to ensure they understand their rights and obligations under a guarantee for a residential property tenancy.
Our Residential Property Department is one of the most successful and busy in Coventry and Warwickshire and have been advising all parties to residential tenancies for many years. Our Solicitors will provide clear, practical advice on residential property guarantees to ensure everyone understands what is involved.
We are a diverse, multi-lingual law firm that uses best-in-class technology to provide clients with streamlined, modern, and highly effective residential property law advice and representation. Our years of experience in residential property law means we have a robust reputation for excellence with the UK’s best Barristers and Queen’s Counsel, Estate Agents, Independent Financial Advisers, Surveyors, and Mortgage Brokers who can bring additional support to our Residential Conveyancing Department if required.
Below are some frequent questions we are asked about residential tenancy guarantees.
What is a guarantee?
A guarantee is a promise by one person (the Guarantor) that another person will fulfil their obligations. If that person fails to do so the guarantor becomes liable to fulfil those obligations which can include paying any relevant outstanding payments not honoured by the third party.
Given the profound consequences facing a guarantor of a residential tenancy should the tenant default on their obligations, expert legal advice should be sought before signing a Guarantor Agreement.
How are guarantees used in residential tenancies?
Put simply, if a person acts as a guarantor in a residential tenancy, if the tenant does not pay rent, the guarantor will be liable. The guarantor will need to sign a Guarantor Agreement which sets out all the details relating to liability including when the guarantor is required to pay money and how long the guarantee lasts.
When would a residential landlord require a guarantor?
If a landlord is concerned a tenant will not be able to meet their monthly rent payments, they are likely to ask the tenant to provide a guarantor. A guarantor is likely to be required if the tenant:
- Has little income or no credit history in the UK.
- Is a student or renting for the first time.
- Is unemployed or on a benefit.
- Has recently moved to the UK from overseas.
Who can act as a guarantor?
Guarantors are usually family members or close friends of the tenant. They will need to provide evidence of good credit history and reliable income. Landlords will often reject guarantors or at the very least ask for more information if they are:
- Live overseas
- Do not own a property
It is highly advisable that all guarantors get legal advice before signing a Guarantor Agreement. There are several pitfalls that may not become apparent until liability under the guarantee is triggered. For example, if the tenant has entered into a joint tenancy (common in student flats) unless the Guarantor Agreement states otherwise, the Guarantor will be liable for the unpaid rent of every tenant, not just their relative’s or friend’s share.
Why choose us?
People choose and recommend us because we care about them, their family, and their future. We are focused on results and achieving them cost-effectively and efficiently. Our Residential Conveyancing Solicitors will provide practical advice on all matters relating to personal guarantees, ensuring all parties feel confident regarding what is being agreed to.
To talk to us about residential tenancy guarantees, please use the form below.
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Depending upon the complexity we are able to offer fixed fees in some cases. In other cases our solicitors chargethe following hourly rate:
- Partner/Member SolicitorHourly rate of £250 + VAT
- Senior Solicitor or Head of Dept: (PQE 8yr+)Hourly rate of £225 + VAT
- Assistant Solicitor/Fee Earner (PQE 3/7yr)Hourly rate of £200 + VAT
- Newly Qualified Fee Earner (PQE 1/3yr)Hourly rate of £170 + VAT
- Paralegals/TraineesHourly rate of £120 + VAT
- Support ParalegalsHourly rate of £100 + VAT