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Difference between lodging and renting
giddypenguin
Posts: 808 Forumite
Hi, we are looking at a house, which as a bathroom and two bedrooms in the roof. IF everything goes well with the sale of our house (fingers crossed this time!) and purchase of the new house, one of our friend's is interested in staying in the roof, having one bedroom, a small living room and bathroom to himself, and sharing the kitchen with us - would that still make him a lodger as he'd have more than one room? Would we have to inform the mortgage company, there would be 3 of us in the house, does that make it a HMO?
Cheers.
Cheers.
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Comments
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He would be a lodger with no security of tenure. It's not self contained and it is your home.
It's not an HMO either. It doesn't qualify - you and your OH are a single household.Everything that is supposed to be in heaven is already here on earth.
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Do the mortgage company need to know? Or is that only when you rent? Do HMRC need to know? Thanks for answering my (probably stupid) questions!0
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Yes. Condition of your mortgage is almost certainly that the property will be occupied by immediate family only. However it's usually a formality to get approval for a lodger. Lodgers' rights are here.giddypenguin wrote: »Do the mortgage company need to know? Or is that only when you rent? Do HMRC need to know? Thanks for answering my (probably stupid) questions!
Same with your insurance. Important you tell them /get their agreement or insurance will be invalid!
HMRC and tax - see here.
More info here.
Have a clear agreement, preferably written, covering everything you can think of. Can friend have overnight guests? How often? 6 nights a week? (puts your utility costs up!).
Does rent include utilities? If so, what if he installs hugely expensive electric fire in winter? What about phone? Broadband?
Access to rest of house?
Cleaning of shared areas?
Arrangements/access for cooking, sharing of kitchen utensils/staples etc and cleaning in kitchen
etc etc
May sound petty but even (especially!) friends fall out over misunderstanding of things like this.0 -
Thats fantastic information. Thanks!0
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