THE SIMPLEST SOLUTIONS ARE SOMETIMES THE BEST
GUARANTOR TRUST is a new solution that uses an old and well-tested mechanism to make life easier for tenants — and for landlords too.
THE PROBLEM
We all need somewhere to live. If you aren't buying a house or flat or living with family, this means renting somewhere to live.
Landlords and agents require tenants to pass checks to establish that they're financially stable and have the resources to keep up rent payments.
Tenants can be considered "higher risk", if they—
Poor Credit History or CCJs
Past financial difficulties can make it harder to pass standard tenant referencing checks.
Recently Self-Employed
New business owners may not yet have the financial track record landlords look for.
Recently From Overseas
International workers and students often lack UK credit history and UK-based guarantors.
Landlords will ask higher risk tenants to give extra financial comfort and security before agreeing to proceed with a tenancy.
GUARANTOR TRUST can help provide this.
HOW CAN WE HELP?
In some cases landlords ask for additional comfort — for example by asking for prospective tenants to find a "guarantor", who makes a formal agreement to pay outstanding rent if the tenant falls behind with rent payments.
Who can be a guarantor? UK landlords will usually insist that guarantors are UK residents with enough resources to cover arrears if the guarantee is triggered. It can be difficult for tenants from outside the UK to find a suitable guarantor.
OUR SOLUTION
GUARANTOR TRUST is a service provided by an independent UK based trustee company. We establish a simple legal arrangement — a trust — into which a prospective tenant or their family member (such as a parent) deposits money. The money is held in trust for the tenant. Our trustee can provide a robust rent guarantee up to a specified amount.
The funds must remain in the trust while the guarantee is in place. But if the tenant no longer needs the guarantee — for example after buying a home — the trust can be closed and the money returned.
Tenants who engage GUARANTOR TRUST to provide a guarantee must still pay rent as normal. The trust isn't there to make normal regular rent payments. But if something unforeseen happens and a tenant defaults on paying rent when due, the landlord or agent can follow a simple process — "calling in" the guarantee — and the trustee will pay any arrears, up to the maximum amount of the guarantee.
It's simple, clear and transparent.
Simple
A straightforward trust mechanism that's easy to understand and set up.
Clear
Transparent fees, clear terms, and a well-established legal framework.
Transparent
Your money stays safe on deposit with UK banks. No lending, no speculation.