How much to charge my friend as a lodger?

Bazshawkins

We've got a mate staying in our spare room for three weeks - we rented with him previously but now we've bought our own place. We're not charging him anything, however he is only with us for 3 weeks until a room becomes available in another rental property, and he did cover some extra rent on our previous place as we moved out a month earlier than both our old flat-mates.

But, we are lucky in that other than a bit of extra gas/electric, and a bit of space, it isn't costing us anything really to have him around. We can afford the mortgage and bills fine between us.

If his stay was indefinite, and he didn't have a place sorted to move in to in a relatively short space of time, we'd probably charge him a nominal 'mates rates' sort of rent - a couple of hundred pounds or something (probably about 40% of what we could get for the room).

Yorkie1

In addition to the insurance aspect, it is always advised to draw up a lodger's agreement to avoid misunderstandings about who is responsible for what, how many times a week you're happy to have someone staying as your lodger's guest, which bills are included, etc. Treat it in a business-like manner and there's less likelihood of problems.

If you have gas in your property then you must get a LL's gas safety certificate.

Do you have a single occupier CT discount? If so, you'll need to declare your lodger to the council - bear in mind the increased cost there.

ultrarunner

The key thing to remember, if your lodger is a friend or otherwise, is that it is a business relationship, even if the environment, your home, is not necessarily one you would think to be a business one.

Fenders

Interesting thread.

My daughter has presented my wife and I with a situation.

She is in a well paid salaried position and has always worked very hard and saved hard over the years.

She finally decided to buy her first property and after alot of searching she found a beautiful one bed flat in a very well managed complex.
The owners were very keen to sell so she made a very cheeky low offer as she was in a good position to move quickly. This very low offer was accepted. She eventually moved in in August 2012. In order to get the mortgage she wanted at a lower % she went for a 75% mortgage, so putting down 25% as a deposit. To achieve this she used all her savings and I made up the difference.

Hope I haven't lost you yet.

The last few months she has been dating someone and now advises me that they are getting serious and she would like him to move into her flat and he would share the bills.

That is all ok, but if that was allowed and say later in the future they fall out, what claim could he have on her property and contents. Can he make a claim because he has contributed to the household bills??

I would be most grateful for any advise.

Thanks

bubblegum1985

Fenders wrote: »

Interesting thread.

My daughter has presented my wife and I with a situation.

She is in a well paid salaried position and has always worked very hard and saved hard over the years.

She finally decided to buy her first property and after alot of searching she found a beautiful one bed flat in a very well managed complex.
The owners were very keen to sell so she made a very cheeky low offer as she was in a good position to move quickly. This very low offer was accepted. She eventually moved in in August 2012. In order to get the mortgage she wanted at a lower % she went for a 75% mortgage, so putting down 25% as a deposit. To achieve this she used all her savings and I made up the difference.

Hope I haven't lost you yet.

The last few months she has been dating someone and now advises me that they are getting serious and she would like him to move into her flat and he would share the bills.

That is all ok, but if that was allowed and say later in the future they fall out, what claim could he have on her property and contents. Can he make a claim because he has contributed to the household bills??

I would be most grateful for any advise.

Thanks

I think this has been covered before; try doing a search for it on the forum under something like "partner moving in"

19lottie82

Can he stake a claim on her flat further down the line?
If he contributes to the mortgage....... Possibly.
If he doesn't contribute to the mortgage, but chips in for bills and housekeeping.......then no.

Kynthia

Fenders wrote: »

Interesting thread.

My daughter has presented my wife and I with a situation.

She is in a well paid salaried position and has always worked very hard and saved hard over the years.

She finally decided to buy her first property and after alot of searching she found a beautiful one bed flat in a very well managed complex.
The owners were very keen to sell so she made a very cheeky low offer as she was in a good position to move quickly. This very low offer was accepted. She eventually moved in in August 2012. In order to get the mortgage she wanted at a lower % she went for a 75% mortgage, so putting down 25% as a deposit. To achieve this she used all her savings and I made up the difference.

Hope I haven't lost you yet.

The last few months she has been dating someone and now advises me that they are getting serious and she would like him to move into her flat and he would share the bills.

That is all ok, but if that was allowed and say later in the future they fall out, what claim could he have on her property and contents. Can he make a claim because he has contributed to the household bills??

I would be most grateful for any advise.

Thanks

This is a different topic so perhaps you could start a new thread.

By the way, did you get a Trust Deed to protect the money you put into the property?

LisaLou1982

Back to the OP:

Check what the going rate is for a room in your area.

I think its pretty cheeky of your friend to think that £300 a month is a lot to cover the room and bills etc. Where i live, £400 a month is normal for Monday to Friday Lodgers. £450 for a 7 day lodger.

Fenders

Thanks everybody for your replies.

After I posted I realised that I should have started a new thread and I apologise if it appears that I had hijacked this thread. That was not my intention.

Sorry

BitterAndTwisted

A live-in partner can never have the status of a lodger. In order to protect herself she should not accept a single penny which could later be construed as a contribution towards the mortgage or rent. Council tax and all other utility bills in her name. Nothing potentially open to misinterpretation later like "you pay for the the bills and food and I'll pay for the holidays and the costs of running the car".