Advice Guarantors This information is accurate as of March 2016
1
Guarantors Many private landlords will ask you to provide a guarantor for your rent before they will rent a property to you.
It is important you and anyone considering becoming your guarantor fully understand what this means and what is required
What is a guarantor?
A guarantor is someone who agrees to pay your rent if you do not or cannot pay it. For students, this is likely to be a parent, a close relative or a close friend. Your landlord can ultimately take legal action to recover any unpaid rent from your guarantor so it is important they are fully aware of the responsibility they are taking on. Your landlord may want to check your guarantor is able to pay by carrying out a credit check. Your guarantor is usually required to be a UK resident. If you are an international student and unable to get a UK-based guarantor, you may be required to pay a larger deposit or pay rent in advance.
Is a guarantor liable for anything other than unpaid rent? In many cases, a guarantee agreement can extend to other conditions under the tenancy agreement such as damage and disrepair. If it does, then it’s best if both you and the guarantor check the tenancy agreement to see exactly what obligations they are guaranteeing.
Guarantors of tenants in shared accomodation As a student, you are likely to live in shared accommodation with a joint tenancy, and in this case, it is common for the guarantee to apply to all of the rent i.e. for the whole property and not just your share. It may be possible to negotiate with the landlord for a variation to a guarantee agreement to ensure the guarantor’s liability is limited to your share of the rent, or damage and disrepair caused by you.
http://www.goldsmithssu.org/advice
This information is accurate as of March 2016
2 When does a guarantors liability end?
This will depend on what the guarantee agreement says. Many are open-ended and refer to liability ‘under this tenancy/agreement’ which means liability could extend beyond the fixed term to any extension, as well as to certain variations such as rent increases. If this is the case, the guarantor’s liability may continue as long as the tenancy exists and will only end if the tenancy is legally ended. It may be possible to argue that an open-ended guarantor agreement is not enforceable, but this decision would have to be made in court.
Checking the guaratee agreement
Check your guarantee agreement carefully so the guarantor knows how and when their liability ends. It may be possible to limit the guarantee agreement to a set period of time by specifying the start and end dates the agreement applies to covering the length of the original fixed term.
Rent guarantor scheme for Goldsmith students Goldsmiths can act as a guarantor for UK students who do not have access to a UK-based guarantor or international students with no family living in the UK in some circumstances. To be eligible you will also need to meet the following criteria: • • • •
No debt to Goldsmiths Satisfactory academic standing Sufficient financial backing to maintain rent payments A satisfactory accommodation reference
The guarantee will cover rent only and Goldsmiths will limit the amount it will agree to guarantee. In Academic Year 2015-16 the limit is £125 per week/ £500 per calendar month.
http://www.goldsmithssu.org/advice
This information is accurate as of March 2016
3 To apply you will go through the following stages: • Find and secure a room or flat • Get the tenancy agreement (do not sign at this point) • Download and complete the Rent Guarantor Application Form 2015-16 • Submit the application form, your bank statements from the last two months, and proof of your income to the Student Centre (RHB 117) If Goldsmiths is required to pay rent on your behalf, this amount will be added to your Goldsmiths account and should be paid within four months. Further information about the scheme can be found on the Goldsmiths website: http://www.gold.ac.uk/student-services/guarantor/ Please be aware that Goldsmiths does not guarantee that all students meeting the criteria will be able to receive help from the scheme.
Contact Us Visit us on the Goldsmiths Students’ Union website and click on Advice or contact us via e-mail: advice@goldsmithssu.org. http://www.goldsmithssu.org/advice
This information is accurate as of March 2016