Before agreeing to be a Guarantor, it is important you understand the extent of what you are guaranteeing and whom. Please read the following guide carefully before downloading the Guarantor Application Form.
When does Kings’ Lettings Ltd require a Guarantor?
Guarantors will normally be required in the following situations:-
- Students/sharer tenancies
- Tenants in receipt of housing Benefit
- Where a tenant has detrimental credit registered against him/her
- Where a tenant has come into the country overseas
- Where a tenant is unable to fulfil/satisfy the minimum referencing criteria i.e. tenant is in their first employment
- Where a tenant is financially weak and unable to meet the monthly rental or a proportion of the rental
A Guarantor must be able to fulfil the following criteria:-
- Be a UK resident
- The rent being guaranteed must be less than 40% of their salary
- Must not have any detrimental credit registered against them
- If not found on the Electoral Roll, they must be able to provide Proof of Residency which must go back 6 months but not older than 2 years
- Must be able to sign the Agreement of Guarantee a minimum of 24 –hours prior to the tenancy commencing as shown on the Tenancy Agreement-this does not affect your statutory rights under the Consumer Protection (Distance Selling Regulations 2000)
Does a Guarantor guarantee the whole rent?
When a tenancy is entered into, the occupants named on the Tenancy Agreement are no longer individuals but become collectively one entity known as the “Tenant” and are therefore jointly and severally liable for the rent and the costs of any damage caused by the tenant during the tenancy.
The responsibilities /liabilities as a guarantor are then also deemed to be “joint and several”. This means that, if there is more than one tenant included in the Tenancy Agreement, the liability will extend to guaranteeing any losses caused by any or all of the tenants named on the Tenancy Agreement.
The “Guarantee” will be limited to the proportion of the monthly rent shown on the Agreement of Guarantee.
In case of sharers, if any one of the sharer requires a guarantor, the guarantor can guarantee a proportion of the rernt, provide the Agreement of Guarantee shows all the tenants as “jointly and severally “responsible.
What does an Agreement of Guarantor cover and what is a Guarantor’s maximum liability?
By signing an Agreement of Guarantee the guarantor agrees to indemnify the Landlord against all costs, losses and expenses arising through any breach of the Tenancy Agreement by the tenants named on the Tenancy Agreement, including rental payments.
Your liability for rental payments will be limited to the proportional amount stated on the Agreement of Guarantee.
How long does the “Guarantee “last?
The guarantee lasts the entire length of the tenancy including any extension. Continuation or renewal of the tenancy.
Does the “Guarantee” cover any rental increase agreed at a later date?
Yes - the guarantee will continue to apply to any rental increase agreed by the Landlord and Tenant at a later date.
When does Kings Lettings Ltd approach the Guarantor to recover any losses?
Once every attempt to recover outstanding rent payments or losses from the tenant have been unsuccessful.
The guarantor will be responsible for settling any out debt standing from any of the tenants named on the Tenancy Agreement.
The Agreement of Guarantee creates a legally binding contract.
If you do not fully understand the nature of the agreement then it is recommended that you take independent legal advice before signing.