renting my house to my friend

johnnyren

hi , ive got the landlords insurance and the gas certificates sorted out already, been to the halifax this morning, there going to sort me out with the consent to lease mortgage.
its just whether they get nasty over my pal being there the last 5 year and backdate.
i dont claim any benefits, neither i believe does my friend.
just need to start thinking about the tax thing.

kingstreet

Assuming this is a leasehold flat, is there no block buildings insurance policy in place?

johnnyren

sorry, im not sure what you mean, its a 3 storey tenament building, i bought the house 20 years ago, 5 years left on mortgage.
there is just obv my normal insurance on the flat.

mjdh1957

As it's a tenement flat, are you in Scotland?

The law is very different in England. For instance, in Scotland landlords may have to register with their local council so that's something else to consider.

serious_saver

First things first how long ago did you move away? If it's recent then you can probably get in touch with your lender and seek permission without too much hassle but you will need to sort out proper agreements/ insurance etc.

For the duration that you both shared the flat you should be covered by the governments rent a room scheme. Provided their payments were below the threshold there's no need to be concerned as you only need to declare for money above the threshold. http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

theartfullodger

johnnyren wrote: »

.......................
just need to start thinking about the tax thing.

Rather, you need to fill in 5 years tax returns & pay what is owing plus fines & penalties for late filing.

(No offence ..I'd say the same to anyone from anywhere,,,) but we don't want people in this country who ain't prepared to pay their taxes & play by the rules.. Is that too much to ask??

Cheers!

Artful

johnnyren

hi, i already have the landlords insurance and the relevant gas/safety certificates covered, i have been on to my bank and they
are sending out my new consent to let mortgage forms to fill in and return.
regarding the tax situation, i was recieving 300 pounds a month from my friend, i was paying a portion of that to a property management company. im not trying to be evasive or dodge my responsibilities, it was just pure ignorance on my part.
ive indeed learned my lesson and had a fright, but if i can keep any penalties ect to a mimimum obv i will
im planning to aedjust my tax code accordingly and hope that will do it.

hcb42

Why did the bank go out in the first place though? Just curious, I didnt think they did follow up house calls..

johnnyren

that has been puzzling me, and anyone else ive spoke to, my friend said it was a woman and she definitely said she was from the bank.
she also said the reason she was asking the questions she was, was that the bank had a vested interest in the property. i suposse that sounds reasonable.