Renting 1 room in 2 room flat. Is that buy to let?

beatallica

As the topic says, I think I may be able to afford a 2 bedroom flat but would like to rent the other room. Would banks count this as buy to let? do I need to inform them about this at all? I obviously want to do whatever is correct and will be very happy to pay taxes on the rental income on the other room etc.

Would appreciate if you can share your experience.

Thank you.

Foxy-Stoat_3

Lodger you mean, if you will be living there also and you can take £4250 a year tax free if you don't have a partner. Your mortgage contract will state if you have to notify the lender or not.

Its not a BTL.

scottishblondie

As long as you are living there yourself the other person would be your Lodger. I think some mortgage providers may want to be informed, you'd need to check your paperwork. For help with tax, take a look at information on the "Rent a Room Scheme".

beatallica

That is very helpful, many thanks !

RedFraggle

You also used to have to notify your insurance company. I may be out of date with that, I'm going back 20 years, but it probably still stands.