There can be a variety of reasons why a tenant may need a guarantor.
Have you been asked to be a guarantor on a tenancy but not entirely sure what it means or your obligations ?
Then look no further here we’ve created a go to guide on being a UK guarantor.
What is a UK guarantor?
A guarantor is someone who observes the legal responsibilities of the tenancy and is jointly and severally liable for the whole rent in the event that the tenant does not make payments.
Who can act as a UK guarantor?
Usually a guarantor would be a parent or guardian however in order to be considered as a guarantor you must be:
• A UK resident
• Be able to prove 36 times the monthly rental this can be made up of any combination of employment/pension and/or savings for example £1000 pcm rental x 36 = £36000 income to be proved.
A guarantor will be required to complete a full reference through our preferred referencing company.
Once referencing has been completed satisfactorily we will draft the Deed of Guarantee which is a legally binding document which will form part of the tenancy terms.
The Deed of Guarantee must be signed in the presence of an independent witness who is not related to you before the Assured Shorthold Tenancy is signed by the Landlord and Tenant.
How long does the Deed of Guarantee last?
The guarantor will remain associated with the tenancy agreement for the full term of the tenancy and for any renewed term.