First time buyer - looking to rent out rooms

jack5r

Boatdweller wrote: »

If you rent somewhere that is not your 'main home' you don't have an AST as it falls outside the scope of the 1988 Housing Act.

That makes sense. But how can anyone possibly determine if it is your main home or not and even if they could, when would this be an issue?

marliepanda

jack5r wrote: »

I wasn't aware that my initial idea was against the law so I've changed my plans in the later posts to see if they are within the law. Thank you for the infomation once again. Please do not take my replies as ignoring your advise. I am just trying to assess the situation for what it is, hence my tedious questions.

The property would likely be less 30 minutes away from my dad's. I would have belongings and my bills sent to the property. I'm not sure how an eviction of a tenant would be any different if I was there 2 nights a week as apposed to 5? I won't have anyone dodgy living in my home either. Likely a young professional in an honest career like myself. I can't see a tenant recording how often I stay at the house with video proof and then going to the authorities? How else could any court determine that I am not living there 7 days a week.

As for tenant vs extended occupier. I'll have to read up on that.

But you, a young professional in an honest career, is looking to commit mortgage and tax fraud.

Honest?

jack5r

marliepanda wrote: »

But you, a young professional in an honest career, is looking to commit mortgage and tax fraud.

Honest?

I'm yet to see a clear-cut definition of main home vs secondary home so is it really mortgage fraud? What if I was spending most my nights at a girlfriend's house (this is very common) or I spent much of my days in the road like some of my friends in sales. Is it still fraud? Well I work in healthcare improving the lives of sick people everyday so I'd say it was a fairly honest career.

G_M

As others have said, it is the definition of 'main home' that matters.

You can certainly argue that it is your main home; you can leave belongings there; you can get post directed there; you can tell the 'occupant' that he is a lodger; you can claim the Rentaroom scheme tax allownace.

And all might be fine (unless you rent the 2nd room - that really would be a no-no).

However, HMRC, your mortage lender, or the courts may decide otherwise if matters were looked into.

The reality is, as you are well aware, that you plan to live with your dad and use the property to generate income "to get on the property ladder ... asap."

So you know you don't plan for it to be your main home. And we know it. Whether tweaking certain practicalities ( 1 night a week? 2?)will be enough to convince those authorities is a gamble.

And however laudable your career choice, that is not going to sway the views of anyone!

marliepanda

jack5r wrote: »

I'm yet to see a clear-cut definition of main home vs secondary home so is it really mortgage fraud? What if I was spending most my nights at a girlfriend's house (this is very common) or I spent much of my days in the road like some of my friends in sales. Is it still fraud? Well I work in healthcare improving the lives of sick people everyday so I'd say it was a fairly honest career.

Main home is the home you mostly live in.

For every situation you have described, thats your dads house.

If you are on the road, your home is still your home. For you, your dads.

Bluebirdman_of_Alcathays

jack5r wrote: »

I'm yet to see a clear-cut definition of main home vs secondary home so is it really mortgage fraud? What if I was spending most my nights at a girlfriend's house (this is very common) or I spent much of my days in the road like some of my friends in sales. Is it still fraud? Well I work in healthcare improving the lives of sick people everyday so I'd say it was a fairly honest career.

There is no clear cut definition. If there was, it would be simple for people to get around it in order to do what you're trying to do.


If it somehow got as far as a judge/court, they would make an assessment based on the facts in front of them. As you are living with your family, and (presumably) not paying a commercial rent for 5 days of the week, that will no doubt be classed as your primary residence. Hint: the very fact you've said that your dads house would be your main home should answer your question!

marliepanda

I used your example of your ideal tenant, someone like you, an professional in an honest career, as you seem to think this will mean nothing will go wrong.

Youre trying to fiddle the system.

Maybe they will try and get themselves some free rent out of it. When youre out of the house for 6 days a week they can change the locks and claim (probably rightly) that they have an AST and that you have no right to let yourself into their home...

G_M

Bear in mind, too, that things don't always go smoothly. What if you and your 'lodger' fall out, for whatever reason? Or you decide to evict him and he has nowhere to go?

He can easily shop you to the mortgage lender. Or HMRC. He can go to court claiming to be a tenant and protected from eviction. And depending what he says to whom, you can really end up in the ****.

Pixie5740

jack5r wrote: »

I'm yet to see a clear-cut definition of main home vs secondary home so is it really mortgage fraud? What if I was spending most my nights at a girlfriend's house (this is very common) or I spent much of my days in the road like some of my friends in sales. Is it still fraud?

That's because there isn't a clear cut definition. The government have produced a guide for resident landlords which beecher2 gave you a link for and even quoted the relevant section for you. Ultimately a court would decide whether this property was classed as your only or main home. Whether that's because HMRC take you to court for tax evasion or if an "excluded occupier" takes you to court to fight an eviction or because you haven't protected their deposit who knows, it might never happen but if it does you'd need to be comfortable making your case.

jack5r wrote: »

Well I work in healthcare improving the lives of sick people everyday so I'd say it was a fairly honest career.

So did Harold Shipman and Beverly Allitt.

hazyjo

I doubt anyone goes looking for a dodgy tenant or lodger lol! S*** happens though.


Might be worth considering hosting via airbnb.co.uk (mortgage and insurance permitting), although that certainly comes with its own risks.


Even in the suburbs, you'll be lucky to get a decent property for £200-250k. In your shoes, if really only a handful of years until you come into more money, I'd sit tight for a while.


tbh, you do come across as very naïve so it's advisable to listen very carefully to what people have to say on here. Any queries, ask - or spend a possible free half hour with a solicitor who can advise further.


It most certainly does not sound as though the property would be your main residence by any stretch of the imagination.


Life has a funny way of not being as mapped out as you'd like. I hope it works out for you, but, really, don't expect it.


Good luck.


Jx