renting out room

alexneale442

Greetings all

I own a 3 bedroom property and i am planning to rent out 2 of the rooms and live in the 3rd one myself. Can anyone help me by informing me of the legal documents needed, and any further requirements for this type of rental. Your help would be greatly appreciated!!!

Alex

homer_j_3

google rent a room scheme or seach forums. You have a tax free allowance on money received but I think you need to register this with hm customs and revenue and if you exceed the tax free part pay tax on the above amount.

There are no legal agreements involved as far as I am aware, however, you will need to inform your mortgage lender and they may ask for some paperwork to be completed which ensures that they agree to give up all rights to the property should they have to repossess

clutton_2

you really should get a lodgers agreement. try https://www.landlordzone.co.uk where all manner of good forms are available - including a tenant application form, do use it, and do check them out.

homer_j_3

im not sure how a mortgage company would see a formal agreement.

To be honest, rent a room schemes are not my strong points but if a legal agreement is in place between you and the person renting then you could be in a different situation in the fact the legalities change thus so does the lenders risk.

Before you do anything speak to your mortgage co and get as much info on the rent a room scheme