England | Start of a Tenancy (England) | Tenant References and Guarantors (England)

Satisfied CCJ on credit report, applicant now would rather not use a guarantor….

12 Oct 2020 | 1 comment

Good morning,

I’ve done an application for a tenancy who disclosed he has a satisfied CCJ from last year for around £500. Last week, he said he could provide a guarantor so I proceeded with his application.  Homelet have sent the final report stating he is Acceptable with Guarantor but the applicant now would rahter avoid having to provide one, saying his CCJ is satisfied and his income is more than enough to cover the rent.

If the landlord is happy to proceed without a guarantor then happy days, it does seem harsh when his CCJ is satisfied and wasn’t for a huge amount. But, if the landlord decides not to proceed, is the applicant entitled to all of his holding deposit back or does the fact that he no longer wants to provide a guarantor classed as not taking all reasonable steps to enter into an agreement? Who pays for the credit check in that case?


1 Comment

  1. guildy

    That’s a tricky one.

    There are essentially two relevant scenarios which could allow you to retain the holding deposit:

    1. Tenant provides false information
    2. Tenant withdraws

    Point 1 is not applicable because they did inform you of a possible credit problem which just leaves point 2.

    Because you’ve informed them beforehand of the conditions of proceeding with a tenancy it’s arguable them now not agreeing to those conditions, is them withdrawing. But, it’s not that clear because they still wish to proceed with the tenancy.

    We’re not entirely sure if they are deemed withdrawing or not. You could always start by issuing the written notice (as required) of your intention to retain the holding deposit and see what develops. Not sure this is an ideal one to risk going too far though.

    Please see here for more information about the holding deposit rules.

    And, here for the notice of intention to retain.

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