Renting my house to friends.... possibly

oakesy2001uk · 7 December 2011 at 11:09PM

Werdnal wrote: »

When you say "if you don't sell soon" - are you planning to rent to your mate, but still keep it on the market? This too is never a wise move - it can limit the interest you will get as any possible buyers will be advised to wait until you have vacant possession before they proceed (this is a requirement of residential mortgages as I am sure with your financial experience you will appreciate).

If you are intending to offer your mate a proper, legally binding AST agreement, you cannot "evict" them until at least 6 months from the tenancy start date. If you do get any interested buyers, ask yourself whether they would be willing to wait that long?

The property is not on the market. Hence me asking how best to rent it.... By selling I meant in a year or two's time... or rent long term, possibly not to my friend, on either my or his part this could well be short term....

I would rather have him and my godson in there than a stranger regardless of the possible pitfalls. I trust him more than a stranger. With that being said, I want to do this properly to avoid any issues just in case.

I'll look at joining a landlords association so I can get a tenancy agreement from them. Thanks for that advice.

I have read somewhere that you can have small amounts of rental income like this taxed through PAYE, is this not true?

G_M · 7 December 2011 at 11:13PM

I second all the advice above.

1) Make a decision - sell or rent. Not both. And not "I'll rent for a bit and see how it goes." Make a decision.

2) If you rent - do it properly. See here and start reading.

3) Don't rent to a mate. Or a relative. Just don't. It's not a question of trust. Trust doesn't help if he loses his job/gets sick and the rent isn't paid and the ortgage arrears mount up. A stranger you can deal with. A mate.... sympathy /understanding gets in the way.

4) Tenancy Agreement? Here.

Yorkie1 · 8 December 2011 at 8:19PM

I don't know whether HMRC simply adjust future tax codes if there is tax payable - but you will have to do a self-assessment tax return first. How else can HMRC assess what tax you owe?

louisa_84 · 8 December 2011 at 8:25PM

Yorkie1 wrote: »

Oh dear. Renting to friends or family is almost universally a really really bad idea. It leads to different expectations and massive fallings-out. What if he lost his job? Would you be prepared to evict him?

Read this thread all about renting. It all applies.
http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

I don't understand your comments about 20%. What do you mean and where did your info come from?

CGT is not payable within 3 years of the property ceasing to be your principal residence. After that it applies in principle if you make a profit and subject to allowances.

I lost my entire family from renting from my mum. Dont do it is my advice.

PLEASE READ BEFORE POSTING

Renting my house to friends.... possibly

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free