Taking on a lodger
Discussion
I'm not entirely sure this is the right place for this question but here goes.
For the last few years a friend and myself have rented a 2 bed property (both single, no kids etc). I've recently managed to save enough for a deposit on a mortgage, so I will hopefully be buying very soon.
I have no objection to renting a room out to my friend and current co- tenant, and I think the best way to facilitate this might be through a basic tenancy agreement. I'm thinking of doing this for 12- 24 months until he has saved enough for his own place.
I would be interested to hear of any experiences anyone may have had in keeping this arrangement above board. I'd be comfortable financially either way, and as I understand it I can't include rent in a mortgage calculation so that isn't a consideration. Would many mortgage providers have objections to a live in tenant?
Thanks in advance.
For the last few years a friend and myself have rented a 2 bed property (both single, no kids etc). I've recently managed to save enough for a deposit on a mortgage, so I will hopefully be buying very soon.
I have no objection to renting a room out to my friend and current co- tenant, and I think the best way to facilitate this might be through a basic tenancy agreement. I'm thinking of doing this for 12- 24 months until he has saved enough for his own place.
I would be interested to hear of any experiences anyone may have had in keeping this arrangement above board. I'd be comfortable financially either way, and as I understand it I can't include rent in a mortgage calculation so that isn't a consideration. Would many mortgage providers have objections to a live in tenant?
Thanks in advance.
I did pretty much exactly what you're suggesting. When I started my current job I moved into rented accommodation with 3 other new graduates at the same company. A year and a half later I bought a house and two of them moved in as lodgers.
There are no tax implications to doing so because of the "rent a room scheme", you don't even need to tell the tax authorities as long as you're not taking more than £7500 a year in rent: https://www.gov.uk/rent-room-in-your-home/the-rent...
I think (this was a long time ago now!) in terms of contract, I got a generic "excluded occupier" contract from someone I knew who worked for the CAB.
I've never heard of a mortgage provider having an issue with having a tenant, although your insurer may need to know.
There are no tax implications to doing so because of the "rent a room scheme", you don't even need to tell the tax authorities as long as you're not taking more than £7500 a year in rent: https://www.gov.uk/rent-room-in-your-home/the-rent...
I think (this was a long time ago now!) in terms of contract, I got a generic "excluded occupier" contract from someone I knew who worked for the CAB.
I've never heard of a mortgage provider having an issue with having a tenant, although your insurer may need to know.
Edited by kambites on Wednesday 28th April 14:03
https://www.citizensadvice.org.uk/housing/renting-...
Generally, you NEED to carefully read your own mortgage T&Cs, to see if they have any objections, or require written consent. If they don't then crack on.
You need to look for a lodger contract, not a tenancy contract, as you might easily be binding yourself when you don't need to. Rough differences - tenancy entitles you to the property, lodger entitles you to the occupancy of a place to stay until you decide otherwise.
Generally, you NEED to carefully read your own mortgage T&Cs, to see if they have any objections, or require written consent. If they don't then crack on.
You need to look for a lodger contract, not a tenancy contract, as you might easily be binding yourself when you don't need to. Rough differences - tenancy entitles you to the property, lodger entitles you to the occupancy of a place to stay until you decide otherwise.
I've had one or two lodgers staying in my house for several years and I find it works well. I started by having someone just Monday-Friday, so someone who worked somewhere nearby but had a permanent home elsewhere in the UK. This worked well while my kids were still at school and the lodger wasn't around at the weekend when things were happening with the kids.
Since my kids have got their own places/gone to uni, I've had full-time lodgers. Fortunately the house is big enough that we don't fall over each other and have plenty of space to do our own thing. As far as I'm aware there's no requirement to tell the mortgage company. Of course there are some weirdos out there, but I generally suss them out early on and get rid. Several have stayed for 2 years or so and we've become friends. I'd recommend it, although I know some people think their home's their castle and don't want a stranger stepping over the threshold. I'm not that bothered.
Since my kids have got their own places/gone to uni, I've had full-time lodgers. Fortunately the house is big enough that we don't fall over each other and have plenty of space to do our own thing. As far as I'm aware there's no requirement to tell the mortgage company. Of course there are some weirdos out there, but I generally suss them out early on and get rid. Several have stayed for 2 years or so and we've become friends. I'd recommend it, although I know some people think their home's their castle and don't want a stranger stepping over the threshold. I'm not that bothered.
Kambites has given a good summary already. The rent a room scheme allows you to earn £7500 tax-free each year.
I’ve done this for the past 5 years at my place. Works better the bigger the place you have, obviously. Not sharing lots of space / bathroom is a factor in how happy you’ll ultimately be.
I’ve earned decent money from this, though I don’t do it any more.
I’ve done this for the past 5 years at my place. Works better the bigger the place you have, obviously. Not sharing lots of space / bathroom is a factor in how happy you’ll ultimately be.
I’ve earned decent money from this, though I don’t do it any more.
Pulse said:
kambites said:
Also worth noting that if you have a lodger, your house has to conform to all of the same safety requirements that it would if you were renting it out, including all the furniture meeting the current fire safety requirements, etc.
Now that I didn’t know! coppernorks said:
Seems to work for many house owners in love with maximising their income, oh Hortense is off to Uni,
we have a free room , what will we do ? invite a total stranger to have the free run of our
house and our underwear drawers, that sounds good.
I had lodgers precisely because I didn't want to live on my own. I did know them well beforehand, mind. we have a free room , what will we do ? invite a total stranger to have the free run of our
house and our underwear drawers, that sounds good.
I went to university as a mature student and was able to buy a flat in my third year of a four year degree. I'd previously rented with a bunch of friends. As soon as I took on a couple of the friends as lodgers, it became clear I'd made a rod for my own back. Everything that went wrong was my fault, they resented paying my mortgage, despite having spent the previous three years paying some faceless landlord's mortgage. One of them came home pissed one night having lost his keys and kicked the front door in. The next day, he complained that the place wasn't secure.
Even if you think you know people well, relationships change dramatically once the financial dynamic alters. When you're all in it together, it's fine. Once one of you is perceived to be making a buck from the others, it goes to rats
t. In my opinion and experience, at least.
Even if you think you know people well, relationships change dramatically once the financial dynamic alters. When you're all in it together, it's fine. Once one of you is perceived to be making a buck from the others, it goes to rats
t. In my opinion and experience, at least.I had lodgers when I had my first property was a good way to spread the bills and pay the mortgage, definitely worth doing and a way to make some tax free cash. few bits of advise, be very careful having a friend a a lodger you will probably fall out. You can get a lodger agreement from wh-smiths. Make sure you type up any house rules for the lodger to agree to, I didn't have many just things like keep the place tidy and only overnight guests one night a week. One lodger tried to move his new Mrs in on the quiet thinking I wouldn't notice.
On the whole was a good experience and a nice way to make legal tax free cash. There are a few web pages to find lodgers and advertise I used spare room.
On the whole was a good experience and a nice way to make legal tax free cash. There are a few web pages to find lodgers and advertise I used spare room.
BoRED S2upid said:
Pulse said:
kambites said:
Also worth noting that if you have a lodger, your house has to conform to all of the same safety requirements that it would if you were renting it out, including all the furniture meeting the current fire safety requirements, etc.
Now that I didn’t know! What the rulebook says and what happens is different
Until your sofa is on fire
He's your friend, and you already live together, so that eliminates most of the friction/risk of doing this with some random.
I've done it myself for a friend in exactly the same situation, who has now been able to buy his own place.
Just remember he's paying you, so don't go into "my house, my rules" arsey parent mode.
I've done it myself for a friend in exactly the same situation, who has now been able to buy his own place.
Just remember he's paying you, so don't go into "my house, my rules" arsey parent mode.
When I bought my first house a short while after a friend moved in as a lodger. It worked well for a year or so until he moved in with his girlfriend.
Then advertise on rentaroom, few calls from people that sounded odd, a couple that sounded promising. The first person I actually suggested come and have a look turned out to be completely genuine, he stayed for 18months but we remained friends after.
As you live with each other already it should be fine.
Then advertise on rentaroom, few calls from people that sounded odd, a couple that sounded promising. The first person I actually suggested come and have a look turned out to be completely genuine, he stayed for 18months but we remained friends after.
As you live with each other already it should be fine.
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