can i have a lodger if my friend whos on the mortgage is living there

LukeGauntlett

looking to first time buy with a friend 50/50. she would live there but i would like to rent my room out to a lodger. can i have a lodger as she occupies the property or would all the lodger payments etc need to go through her?

zagubov

LukeGauntlett wrote: »

looking to first time buy with a friend 50/50. she would live there but i would like to rent my room out to a lodger. can i have a lodger as she occupies the property or would all the lodger payments etc need to go through her?

She would have to be the lodger's landlord, not you, as she lives there and it doesn't look like you do.

In fact, as they are renting your room, it's hard to see how you could be the landlord unless they only lodge for part of the week and you then use the rest of the week.

I think that almost automatically makes it not a landlord/lodger relationship as far as you're concerned.

G_M

This scenario comes up periodically but continues to be a grey area.

* if the occupant (O) pays rent to you (and/or has a contract with you, written or verbal), then as you are a non resident LL, O would be a tenant. You would have to declare the rent to HMRC. And comply with all landlords regulations.

* if O paid your friend (F), who is a resident LL, then O would be her lodger. F would have to declare the rent unless she used the Rent a Room Scheme

* if F then either paid you the equivellant amount (as a monthly gift?), or paid a higher % of mortgage, then .... this might well be seen as a mechanism to a) avoid tax and/or b) deny O their rights. Whether HMRC or the relevant courts would rule in this way, or even ever know, is uncertain....

* and of course 9 times out of 10, lodger relations work well, everyone gets on and the whole legalistic niceties are irrelevant. Till the 10th time. When the lodger refuses to leave and claims tenancy rights; gets legal advice; contacts HMRC. Or the mortgage lender. Or ..... or..... or.....

Another word of warning: joint property purchase is a bigger commitment these days than marriage. Marriage (without kids) is pretty easy to end. But geting out of a joint-ownership can be complex and lead to destruction of friendship. So if you DO go ahead, plan for every possible future scenario:

* you want to buy elswhere and need to sell your share. What happens?
* F wants to move and sell?
* F moves a boyfriend in with her
* you get maried. And divorced. You ex claims half your share of the property
* F gets pregnant
* you lose your job and can't pay your share of mortgage. Or repairs.
* F goes bankrupt and the Official receiver grabs the property
* etc etc

HampshireH

Why does your friend want to buy a property with you only to be forced to live with a stranger?

societys_child

G_M wrote: »

What happens?
* F wants to move and sell?
* F moves a boyfriend in with her
* you get maried. And divorced. You ex claims half your share of the property
* F gets pregnant
* you lose your job and can't pay your share of mortgage. Or repairs.
* F goes bankrupt and the Official receiver grabs the property
* etc etc

Sounds like an episode of Eastenders . . or Emerdale

LukeGauntlett

thanks all, concluded this is a terrible plan