Renting part of the granny annex

Guest101

taffer87 wrote: »

Its a risk v reward decision, If there is a way to avoid a tenancy and accepting lower rent - then that's what I would like to do.

Obviously if there is no way this is possible at all within the laws then I will have to reconsider.

Thank you

See post #30 for risk vs reward.

taffer87

But it has now been allowed in London legally - you can check the link I had in my post. Thanks

HouseBuyer77 wrote: »

I'd note air bnb is getting in legal trouble (or rather the providers of rooms on air bnb) all over the world due to the legal grey area it occupies.

Guest101

taffer87 wrote: »

But it has now been allowed in London legally - you can check the link I had in my post. Thanks

Repealing an Act does not make a companies business model water tight.

People were already getting lodgers in prioir to the repeal.

This just made it official.

HouseBuyer77

Thanks to a change in the law, Londoners can now rent their spare rooms on a short-term basis

I suspect the change of legislation referred to by the article may not cover your precise situation (for the exact same reason you couldn't call them a lodger).

taffer87

Just a prefernece thing - if I can legally (even with a lower rent) make it a lodger agreemnt then that's what I would like to do.]

Sorry, I meant sharing an en-sute with no cooking facilities. Is that legal or not? What is the law that makes this illegal?

Yeah its not en-suite. The washroom access is from the kitchen of the granny annex not from the bedroom. So in theory I could share that and also the kitchen.

Agree re consequences if its deemed a tenancy that's why I am getting advice and reseraching this now. Except for the mortgage bit - the mortgage lender just charges a 1% higher interest for unauthorise letting so its not as big a deal as mortgage being recalled.

Guest101 wrote: »

If i understood your reasons for avoiding a tenancy, it would be easier to assist you. i.e. allaying your fears.

Renting an en-suite room, and providing cooking facilities in the room is not illegal - its a bedsit style, which may get you some lower rent. The problem is, this is a stand alone structure. You do not live in the property. You'e only real defence (and im still not clear if this is right) is that you share a plot of land with the property.

Sharing the bathroom - would invalidate your claim that it's ensuite.

Loophole lawyering on this kind of things to save a few quid could end up costing you much much more.

Think about it, you take a £500 deposit? probably more in london. You dont protect it, court rules it a tenancy, tenant sues you for 1-3x the deposit. Straight away upto £1500 down.

You evict the 'lodger' by changing the locks, he goes to court, court rules its a tenancy - thats £200 per day for lack of access (court can take upto 6 week) so that potenitally £8k in damages you're paying them.

Mortgage lender finds out and decides (its unlikely, but lets go worst case on this one) to cancel your mortgage, do you have £x00,000 in the bank to pay it off?

PasturesNew

If it were me I'd be looking at renting it out on a Mon-Fri basis, and/or AirBNB. That way you've neither a lodger, nor a tenant, but an occupier under license.

taffer87

It was built 12 years ago as a living accomodation when the house was owned by the council so no planning permisison was needed... it was built by the council.. when the previous owners bought it from the council no conditions were attached on the property and so it has been used for 12 years with no conditions on renting.

martindow wrote: »

Has this been built or converted to residential recently? If so it would probably have needed planning permission.

Some towns like Slough are very concerned about 'sheds with beds' such as those recently discovered after an aerial survey. There are issues with poor conditions or lack of fire escapes as well as tenants being exploited.

In seaside resorts it is not unknown for some residents to camp out in converted sheds or garages at the end of the garden so they can rent out their houses by the week. These sometimes appear to be tolerated by local councils.

taffer87

I suppose it could - its in london near canary wharf... anything priced reasonably in london gets lines of people wanting to rent it short term / long term...

terrierlady wrote: »

could it become a holiday let? are you in an area which may be sort after?

taffer87

Thanks a lot for sharing your thoughts.

I can't seem to find the link re law - I know you posted some guidance but that wasn't really law?

Guest101 wrote: »

It's in the link i posted earlier.

taffer87

Yeah maybe this is what I should pursue... where can I find the rules surrounding this??

PasturesNew wrote: »

If it were me I'd be looking at renting it out on a Mon-Fri basis, and/or AirBNB. That way you've neither a lodger, nor a tenant, but an occupier under license.