Guarantor

[Meg888]

A friend of mine has asked me to stand as a guarantor to a rented property he is about to take on. He's had some problems in the past, and I've helped him financially and he has always paid me back. I know basically what it means, but can anyone explain in more detail. My concerns are if he doesnt have enough to pay his rent, does that mean I have to while he continues to live in the house? I have faith that he will pay it every month, but I just wondered what the worse case scenario would be for me if he couldnt meet the rent.

TIA

[CheekyChops]

Yes, you are guaranteeing that he will pay his rent and if he doesn't then you will.

The worst case scenario is that you become liable for any months he misses his rent!

[R1Geezer]

yep as above. You are guarenteeing the rent. In fact this is the most dangerous kind of guarantouring you can do. essentially you are agree to pay his rent perpetually withot limit. If he stops paying the rent then the landlord will pursue you rather than eviction. If he's the sort that welshes on debts I'd run a mile if I was you. You may be friends now but people with bad credit are usually the sort that look after no 1 above all else. Don't do it!

[minuteman]

A friend in need is a pain the arse !
Dont do it ! A true friend wouldnt ask you to commit
to such an onerous guarantee.

[sandmaster]

I agree - don't do it. it is a commitment without end.
As an aside - you welch on something - not welsh!!

[Oneeyedvic]

Worse case scenario - the document is a Guarantee and Indemnity in which you Indemnify the landlord against any thing that your friend does.

eg, he stops paying his rent and claims squatters rights. The landlord has to fight this legally and costs around �5000.

You are liable for this amount.

[Twenty20]

As Oneeyedvic says, its not just rent but dilapidations (damage, cleaning etc) and anything else that's in the AST.

As a landlord I do ask for guarantors sometimes, but personally I would never stand as guarantor for anyone, its too risky.