UK Landlord Forum / Life

Hi i have a property which is let to two professionals whom both earn. However, since taking up tenancy, they have had a baby and sadly their relationship has failed. The mother wishes to remain as the sole tenant. She can now only work part time and is applying for universal credit. Her fathers has agreed to be a guarantor but reading other posts, this stands for nothing. They have until now been good tenants and i would like to support the lady and her child by allowing a new tenancy agreement, but this now has risks attached and the household income will be reduced. What do i do, permit a new agreement and undertake new credit references, and if so can i include the guarantor? Or am i entitled to terminate the agreement and look for new tenants? Any advice would be appreciated.

It depends on the value you associate with "i would like to support the lady and her child".

Because from a purely mechanical business perspective, absent the noise, what you're asking is, should I take on a tenant who cannot afford the property without universal credit?

If you do wish to proceed, consider making the potential guarantor a joint tenant instead. This is much more reliable than them being a guarantor, they're as liable as the other, resident, tenant for everything. There are two downsides: it's a much less conventional setup (although perfectly valid and legal) and the father can serve notice and end the tenancy. But, if the father really wants to help, that's the way forward. If they have concerns, suggest that they get some legal advice to explain things, because, you're right,  ourside student letting, a guarantor agreement is next to valueless in practice.

Thanks for your valuable comments. I like your thoughts on making the guarantor a joint tenant, and this could be an option if i decide to proceed. I shall keep you updated how things work out. Thanks once again.