Guarantees For Residential Property Tenancies
Many residential landlords require new tenants to provide some form of guarantee.
It is crucial for landlords, tenants, and guarantors to seek expert legal advice to fully understand their rights and responsibilities under a residential property tenancy guarantee.
Based in the heart of Nuneaton, our specialist Residential Property Department is one of the busiest and most successful in Nuneaton and Warwickshire. We have been advising all parties involved in residential tenancies for many years. Our expert Solicitors offer clear, practical advice on residential property guarantees, ensuring everyone is well-informed.
We are a diverse, multi-lingual law firm that utilises state-of-the-art technology to deliver streamlined, modern, and highly effective residential property law advice and representation. With years of experience in residential property law, we have earned a robust reputation for excellence. We collaborate with the UK’s top Barristers and King’s Counsel, Estate Agents, Independent Financial Advisers, Surveyors, and Mortgage Brokers who can provide additional support to our Residential Conveyancing Department if needed.
Common Questions about Residential Tenancy Guarantees
What is a guarantee?
A guarantee is a commitment by one person (the Guarantor) that another person will meet their obligations. If that person fails to do so, the guarantor becomes responsible for fulfilling those obligations, which can include paying any outstanding payments not honoured by the third party.
Due to the significant consequences a guarantor may face if the tenant defaults on their obligations, it is essential to seek expert legal advice before signing a Guarantor Agreement.
How are guarantees used in residential tenancies?
In a residential tenancy, if a person acts as a guarantor, they become liable if the tenant fails to pay rent. The guarantor must sign a Guarantor Agreement, which details their liabilities, including when they are required to pay and the duration of the guarantee.
When would a residential landlord require a guarantor?
A landlord may require a guarantor if they are concerned that a tenant may not be able to meet their monthly rent payments. A guarantor is often required if the tenant:
- Has a low income or no credit history in the UK.
- Is a student or renting for the first time.
- Is unemployed or receiving benefits.
- Has recently moved to the UK from overseas.
Who can act as a guarantor?
Guarantors are typically family members or close friends of the tenant. They must provide evidence of good credit history and a reliable income. Landlords may reject guarantors or request additional information if they are:
- Retired
- Living overseas
- Do not own property
It is highly advisable for all guarantors to seek legal advice before signing a Guarantor Agreement. There are several potential pitfalls that may not become apparent until the guarantee is enforced. For example, if the tenant has entered into a joint tenancy (common in student housing), the Guarantor could be liable for the unpaid rent of all tenants, not just their relative’s or friend’s share, unless the agreement specifies otherwise.
Why Choose Us?
Cocks Lloyd Solicitors provides exceptional Guarantees For Residential Property Tenancies and Residential Conveyancing services to clients. People choose and recommend us not just in Nuneaton, Tamworth, Atherstone, Hinckley and Leicester, but across Warwickshire, Staffordshire, Leicestershire and the West Midlands, and the whole of the UK, because we get results.
To receive expert advice and representation regarding Guarantees For Residential Property Tenancies and Residential Conveyancing, please contact us using the form below, call us on (0247) 6641642, email via the Request a Callback form on this contact page.