We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Choosing between a one vs two bedroom apartment...

pred02
Posts: 220 Forumite



Hi,
I am in the process of buying a new flat in London. I am considering either a 1 or 2 bedroom. The 2 bedroom would stretch my finances a little but would still be in the range.
My parents are suggesting I should get a two bedroom to give scalability as I am not that young any more and may grow a bit soon. To get a 2 bedroom - it would probably make sense to rent out one of the rooms.
A mortgage advisor told me that it is not legal to rent out a room on your own property without mortgage lender approval and if you do have a lodger that you can collect maximum £95pw without declaring to the government. Is this true?
I understand the obvious tax implication (e.g., additional income that has to be declared) but in practice it seems to me London is full of landlords who sublet out a room to tenants. Is this all done under the table? Does the tenant have rights (e.g., difficult to kick him out)
Many thanks
I am in the process of buying a new flat in London. I am considering either a 1 or 2 bedroom. The 2 bedroom would stretch my finances a little but would still be in the range.
My parents are suggesting I should get a two bedroom to give scalability as I am not that young any more and may grow a bit soon. To get a 2 bedroom - it would probably make sense to rent out one of the rooms.
A mortgage advisor told me that it is not legal to rent out a room on your own property without mortgage lender approval and if you do have a lodger that you can collect maximum £95pw without declaring to the government. Is this true?
I understand the obvious tax implication (e.g., additional income that has to be declared) but in practice it seems to me London is full of landlords who sublet out a room to tenants. Is this all done under the table? Does the tenant have rights (e.g., difficult to kick him out)
Many thanks
0
Comments
-
Details of rent-a-room scheme:
http://www.hmrc.gov.uk/individuals/tmarent-a-room-scheme.shtml
This applies to lodgers i.e. those who rent a room in a house/flat where the landlord is resident; and they have very few rights.
Try www.landlordzone.com for further advice.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
I would go for a two bedroom, can easily rent it out one room to a lodger. Also if you have child later you don't have to think about moving so quickly again.0
-
Most people I know who have bought one bedroom wish they had bought two!!0
-
Mortgage advisor told me that it is not legal to rent out a room on your own property without mortgage lender approval
That's absolute codswallop
and if you do have a lodger that you can collect maximum £95pw without declaring to the government. Is this true?
That part is true.
I understand the obvious tax implication (e.g., additional income that has to be declared) but in practice it seems to me London is full of landlords who sublet out a room to tenants.
They are not sub-letting and the people who live in the properties with them are not tenants, they are lodgers.
Is this all done under the table? Does the tenant have rights (e.g., difficult to kick him out)
Tenants have rights but lodgers have few, if any. The main things to bear in mind are that you must continue to occupy the property permanently yourself and should you choose to take in a lodger at some point in the future is to have them sign a LODGERS agreement and not a tenancy agreement.0 -
sorry to be thick but what is the difference between a tenent and a lodger?0
-
i agree with most on here, - and would personally go for the 2 bed, you will really appreicate the extra space, and worse happens get a lodger or a exchange student to pay the bills for a while.
Ok it may push you, but I'd be willing to make cut backs elsewhere (eg no Sky subs/cheaper phone deal etc)
Good luck anyway!0 -
PrincesaGuerrera wrote: »sorry to be thick but what is the difference between a tenent and a lodger?
A lodger is someone who has non-exclusive use of a room in the LL's house while the LL is still living there.
They have very few rights and can be asked to leave quickly.
A tenant lives in the LL's property (either sole occupation of a room plus shared areas, or the whole property) but the LL does not live there too. A tenant has lots of rights including protection from eviction without going through the court process first.0 -
So according to this are exempt up to £4250 per year however over that amount (if you charge higher rent) you must pay taxes at 40%?
Are there any issues with the mortgage companies if you rent out a room?
Thanks0 -
Listen to your parents and go for the 2 bed.They deem him their worst enemy who tells them the truth. -- Plato0
-
So according to this are exempt up to £4250 per year however over that amount (if you charge higher rent) you must pay taxes at 40%?
Are there any issues with the mortgage companies if you rent out a room?
Thanks
You pay tax at your top marginal rate, which may not be 40%.No reliance should be placed on the above! Absolutely none, do you hear?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.3K Work, Benefits & Business
- 599.5K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards