Implications of friend moving in?

steevi

Hi all,

I have a shared ownership property, mortgage with Leeds Building Society.

A friend of mine is having to move out of his family home. He is self-employed and in receipt of Working Tax Credits, and will therefore be receiving Housing Benefit.

We've discussed it, and I'd like him to move in with me. What implications will this have for me and for him? Do I need to inform anybody - I assume I can write my own tenancy agreement for him?

Any advice would be gratefully appreciated.

RAS

The starting point is that you do NOT write a tenancy agreement. It is likely that your mortgage provider, owner and insurance companies would need to consent and they may well all decline.

Your friend will be a lodger. This means he has no or limited rights to remain in the property if any of the above need to repossess it.

You need some house rules (who pays what in terms of untilities etc). He needs a letter setting out what his rental payment is and what that covers.

You will lose your single person CT reduction, so make sure you declare that yourself.

steevi

RAS wrote: »

The starting point is that you do NOT write a tenancy agreement. It is likely that your mortgage provider, owner and insurance companies would need to consent and they may well all decline.

Your friend will be a lodger. This means he has no or limited rights to remain in the property if any of the above need to repossess it.

You need some house rules (who pays what in terms of untilities etc). He needs a letter setting out what his rental payment is and what that covers.

You will lose your single person CT reduction, so make sure you declare that yourself.

Thank you for this post, really helpful.

House rules will be sorted. The letter will be sufficient as proof for the Housing Benefit people, then? It seems to be on the form I looked at.

I'd thought about Council Tax and all ready to declare that.

Thanks again!

duchy

So long as he is a friend and a genuine lodger it won't make a difference - however if anything like credit agreements for anything were in joint names it might raise a flag with his WTC/HB so council tax aside his name shouldn't be added to any of your household finances. If they think you may be a couple it can cause complications

topcat007

RAS wrote: »

The starting point is that you do NOT write a tenancy agreement. It is likely that your mortgage provider, owner and insurance companies would need to consent and they may well all decline.

Your friend will be a lodger. This means he has no or limited rights to remain in the property if any of the above need to repossess it.

You need some house rules (who pays what in terms of untilities etc). He needs a letter setting out what his rental payment is and what that covers.

sorry for jumping on tour thread OP but curiosity got the better of me!


You will lose your single person CT reduction, so make sure you declare that yourself.

If a friend was a lodger does this have to be legally recorded anywhere so that if anything went strange they could not claim any of the house?

Socksey

Other thing to check is the tax implications... You can charge some £80 (may have changed) per week to a lodger on the 'rent a room' scheme without having to pay tax on it but it all needs to be declared...

steevi

Thanks, guys.

So, I just need to let the Council Tax people know and write a letter stating that he is lodging here and rent is x amount per month?

How do I then go about the Rent-A-Room scheme? Ignore it or sign up later? Very confusing