Extension - would it add value to the house if selling in the future?

pasok11

if I take 2 lodgers - would this avoid being HMO?

macman

Sounds like you are turning it into a g/f flat and an HMO upstairs. No sane LA is going to licence that, nor will you get planning permission!

oldbikebloke

pasok11 said:

if I take 2 lodgers - would this avoid being HMO?

it depends on the rules applied by your specific council as each one has discretion over whether to apply "selective" licensing.
In principle however, yes the legal definition of an HMO is  a property with 3 occupants who form more than 1 household. So your family is one household, 2 lodgers would make it 3 households in total and so an HMO - whether it would need licensing is the question
https://www.gov.uk/house-in-multiple-occupation-licence

also what don't seem to know is having 2 or more lodgers means you will pay Capital Gains Tax when you sell as you lose part of your principal private residence relief. So not only will the lodger rent have to repay the extension cost, but it will also have to fund part of your tax bill. Your 6 year payback period just got longer....
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64702

GDB2222

Does it matter whether the lodgers share facilities with the host household? In that case, could they be classed as a single household?

AlexMac

pasok11 - given your many other weird threads indicate where you are coming from, why don't you emulate what many people in my area of SE London have done?  Build illegal self-contained dwellings i the rear garden - without plannig or building regs approval (I kid you not) and cram them full of illegal tenants? 

Our kids lived next to one like that, and when they sold, and as they had a big garden, the neighbour's mate offered to buy- with an agreed price under the (then) SDLT threshold of £250k, and a bag of fivers to make up to the real price... (I kid you not)

They declined!  And sold, quite leaglly soon after at £256k

pasok11

oldbikebloke, thank you for an informative reply, this is very helpful. I am completely new to all these regulations and trying to understand. Thank you.

zagubov

GDB2222 said:

Does it matter whether the lodgers share facilities with the host household? In that case, could they be classed as a single household?

Yes they would. You can, with everybody's agreement, move in with somebody as long as it's for weeks rather than a day or so.
I know someone who has to leave their family at the start of the week, travel 200 miles to their NHS job staying in a one-person flat until the end of the week when she returns to be with her family.
Previously she would be staying with a relative near her work but this isn't reasonable any more but has been offered a free flat so she can be safe until it's safe for everybody.

SouthLondonUser

As with everything, it depends. There are many parts of London where it's impossible to find a 4 bedroom house unless the 4th (and sometimes the 3rd) bedroom are in the loft, so if you want 4 bedrooms without loft extension then you must look in completely different areas which are completely different markets.
Also, there are loft extensions which are very well made, with better insulation than you can find in non-extended houses, and lofts which are like sleeping in a car: freezing cold in the winter and crazy hot in the summer. 

pasok11

Thank you for all replies. I really apprecite.