family member as lodger

w00519772

My sister has worked abroad for ten years. She is planning to come home at Christmas permanently.

She will live with my parents initially who live close to me. I own the house. She has dropped hints that she would like to live at my house as a lodger until she finds her feet.

If this happens (and it is a big if) then I will lose my single persons allowance for council tax and would have to notify the mortgage company. What would you charge a family member for rent and bills? I don't want to be too tight but I don't want to be a walk over either. Does anyone have any experience of this scenario?

missbiggles1

How much will she be earning?

w00519772

Don't know. I assume she will have to look for a job. She has a degree and is a hard worker with teaching experience.

McKneff

I wouldn't do it......


you have got used to doing what you want,when you want, you can make as much noise as you want.


you will end up resenting her doing what she wants, when she wants and making noises that you don't want to hear.

HappyMJ

w00519772 wrote: »

My sister has worked abroad for ten years. She is planning to come home at Christmas permanently.

She will live with my parents initially who live close to me. I own the house. She has dropped hints that she would like to live at my house as a lodger until she finds her feet.

If this happens (and it is a big if) then I will lose my single persons allowance for council tax and would have to notify the mortgage company. What would you charge a family member for rent and bills? I don't want to be too tight but I don't want to be a walk over either. Does anyone have any experience of this scenario?

You will lose the single persons discount nothing really you can do about that if your guest has nowhere else to stay. If the guest has a permanent home elsewhere you don't lose the single persons discount.

If your guest isn't paying anything to stay there is no need to inform the mortgage company as they are a guest.

If your guest is paying to stay then yes they become a lodger. Most mortgage companies will accept one lodger without any problem at all.

What would I charge a family member. Close family..i.e brother, sister, mother, father, son, daughter...nothing. A little removed. Nieces, nephews, aunts, uncles. Not much. Any further removed exactly what you would charge a lodger that you don't know at all.

G_M

Even if she pays rent, as a lodger (not a tenant) the mortgage lender need not be informed.

What to charge her?

* obviously the difference in council tax
* an amount to cover other increased costs (utilities, household staples etc)
* something for food (if you provide it) or an arrangement

Beyond that it depends

* on your relationship
* how long she plans to stay
* on her income/savings (ie ability to pay)
* on your income/savings (ie in comparison to her)

If your sister is really hard up, and you are comfortably off, then I'd charge nothing or a token amount, at least initially.

If she's been a highly paid executive abroad and is rolling in foreign income, and you can only just make ends meet, then check out the market rate for local rents (and possibly double it!)

xylophone

Is there any reason why she can't live with her (your ) parents until she has found a place of her own?

kinger101

HappyMJ wrote: »

What would I charge a family member. Close family..i.e brother, sister, mother, father, son, daughter...nothing. A little removed. Nieces, nephews, aunts, uncles. Not much. Any further removed exactly what you would charge a lodger that you don't know at all.

I spent 18 years living with my brother. Sharing a room. I'd charge him at least 4 times the market rate.

Kynthia

As others have said it depends on the circumstances. If you're comfortably off and she's hard up and trying to save a deposit or job hunt then I'd charge just the increase in costs. If she can afford to rent anywhere but wants to live with you for now and money I'd tight for you then market rate for a room. If the situation is something in between then charge something in between.

hign10pines

Remember she won't be able to claim HB at either property. Does she have savings?

Prothet_of_Doom

Month Zero : £200 deposit in advance.
Month one : the cost of the food she eats.
Month two : The extra cost of council tax, and heating and electric.
Month three : 70% of the average prevailing "market rate" as determined by picking 10 house share adverts off https://www.spareroom.co.uk and taking the mean average.
Month 12 : 100% of the market rate.

Personally I wouldn't let my sister stay one week, but hey.