Friend living with me - am I a landlord?

buzzyzoe

I've struggled to find information about this so far. I'm looking to buy a two bed house in London (FTB). I'm hoping to pay for the majority of the property up front, and get a 60k or less mortgage for the remainder. I will be paying the mortgage myself from my own salary.

I was then hoping to live in the house, but rent the extra bedroom to a friend. Would I be a landlord? Would I have to declare this to anyone? Would I need a BTL mortgage? Very clueless about all of this, so looking for advice well in advance!

I_have_spoken

So long as you are also living in the house, anyone else staying in the house is a lodger with very few rights compared to a tenant. IMHO you won't need consent to let from your mortgage provider.

The Rent a Room Scheme lets you earn up to a threshold of £4,250 per year tax-free from letting out furnished accommodation in your home. More than this and you'd need to declare as income to HMRC.

buzzyzoe

Lodger - that makes more sense!

Thanks for the link - it looks very helpful

Not relishing the thought of filling out a tax return again though!

theartfullodger

Yes you will be landlord, lodger or tenant: With all the legal responsibilities...

Yorkie1

Don't forget that you will need a LL's gas safety certificate if you have any gas appliances, including a boiler, in the house.

G_M

theartfullodger wrote: »

Yes you will be landlord, lodger or tenant: With all the legal responsibilities...

except that the legal obligations are much more stringent if you have a tenant....

See also:

LODGERS (Licencees/Excluded Occupiers)
A lodger (broadly) lives in the same property with their resident landlord, and shares facilities. Unlike tenants, lodgers have few rights.

The Housing Act 1988 provides definitions of 'Resident Landlord' and 'same property'.

There is advice for landlords considering taking in lodgers here:

LodgerLandlord (General information site)

Landlordzone (General advice on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (Government scheme for tax-free income from lodgers)

buzzyzoe

Thanks all! Much appreciated