Information for tenants
Bond Guarantee Scheme
A Bond Guarantee is a non-cash deposit that can be provided to a landlord before a tenancy starts. The bond works by us acting as guarantor on behalf of the tenant, we will pay the landlord up to the value of the Bond for certain losses such as unpaid rent or major damage during the tenancy. You, as the tenant, are liable for any successful claims against them.
Who is eligible to apply?
You can apply for a Bond if you are:
- homeless or threatened with homelessness within 28 days or you are in extreme housing need
- in receipt of a means tested benefit or low income
- in a household with an income of £15,000 or under per annum
How long does it last for?
To receive the Bond you will be asked to set up a savings account with the West Cheshire Credit Union and make regular deposits. Ideally the full Bond amount should be saved within 12 months although this can be extended for another six months if savings are being made but the full amount hasn’t quite been saved. Funds in the account can’t be used until the full bond amount has been transferred to the landlord/letting agent’s account by the Credit Union.
What can happen once it expires and the you want to remain in the tenancy?
After the initial six months one of the following four things will happen:
- we will agree to extend the Bond providing you have stuck to the Credit Union savings plan
- the landlord may want a partial payment towards the full deposit, a ‘gesture’ payment by you
- the landlord is happy with you remaining without a deposit in place and may not provide a new tenancy agreement; however, you would then remain as a ‘periodic’ tenant
- the landlord may choose to regain possession and will serve the appropriate notice seeking possession on you If you need further information on the Bond Guarantee Scheme contact Housing Solutions
For more information about the Bond Guarantee Scheme, please contact our Housing Solutions team:
- Email: housingoptions@cheshirewestandchester.gov.uk
- Phone: 0808 175 3595
