laws around long staying guest in the property

27leo

Hi there,

One of my relatives is asking to live with us for couple of months. he is living in shared accommodation now where his bills get taken care off. he is above 18, works and pays taxes too so isnt in any exemption category as such.

I am alright with him living with us (we already are 2 adults in the property and pay full council tax) for couple of months but I am worried about laws around council tax, do I need to update my house insurance as well as mortgage bank and how is it going to change my situation money wise. I just put down 5% deposit, availed help to buy so ideally I would say I am just little over 5% owner of my property and rest still belongs to bank and govt. So I think I would require to update them atleast? Please guide. If you have links of relevant information that will be helpful too.

You all know how it ends up sometime. you hesitate to say no but you need to back things up with evidence if you are to say no.

thanks

silvercar

Your home, your decision.
Council tax is unaffected, so you don't need to notify. The mortgage is a loan secured on the property, you don't need consent for guests. HTB is just another form of loan.
I would consider and discuss the length of expected stay, the contribution you expect for bills/ food and house cleaning rotas/ hogging the wifi etc All your call.

jon81uk

You most likely don't need to tell the bank anything about who lives in the house, unless they are a joint owner.

Will your relative pay you rent? If they do then you may have to check with the bank, but most mortgages allow you to let out a room to someone.
Some advice here
https://www.citizensadvice.org.uk/housing/renting-a-home/subletting-and-lodging/subletting/subletting-your-home-what-you-need-to-think-about-first/
https://england.shelter.org.uk/housing_advice/repossession/taking_in_a_lodger_if_you_have_a_mortgage

cattie

If the relative is staying as a guest for only a couple of months I can't see that you need to inform anybody. If the relative was to move in permanently then that would be a different story, but nothing to do with council tax as you're already paying full rate. If the relative is to be living with you permantently then yes, contents insurance provider should be notified.

I wouldn't think the mortgage lender needs to know, as you will still be resident at the property & paying the mortgage.  Thousands of people have a lodger in their spare room to help with costs & don't bother notifying the lender.

MovingForwards

Do you want said relative staying in your home, the one you just purchased?
Which is owned by you, not the bank by the way.

Why is said relative not moving into another rental, shared or sole property?

27leo

the other query is how does it affect my relative long term? if he is not on any council bill or utility bill or electorate. does it not affect his rating if isnt paying any sort of bills?

Comms69

27leo said:

the other query is how does it affect my relative long term? if he is not on any council bill or utility bill or electorate. does it not affect his rating if isnt paying any sort of bills?

Not negatively. I mean it wouldnt positively anyway really, but basically it has no effect

AdrianC

27leo said:

I just put down 5% deposit, availed help to buy so ideally I would say I am just little over 5% owner of my property and rest still belongs to bank and govt.

No, you are 100% owner. You just happen to owe a lot of money secured on your property...

greatcrested

If he pays no rent (but maybe contributes to food,cleaning etc), he is a guest. No need to tell council, mortgage lender, insurance or anyone.

If he pays rent he is a lodger (legally an 'excluded occupier' meaning excluded from tenancy rights). Insurerer might need to know - read the unsurance policy. Be wary about phoning to ask as many customer service advisers don't understand the difference between 'lodger' and 'tenant' and you may be mis-advised. No need to tell council, mortgage lender or anyone else.

Rental income is usually taxable, but not if it is less than £7,500 per annum. See the Rent a Room Scheme.

See also

Post 10: Lodgers: advice & links for landlords & lodgers

27leo

MovingForwards said:

Do you want said relative staying in your home, the one you just purchased?
Which is owned by you, not the bank by the way.

Why is said relative not moving into another rental, shared or sole property?

because of corona, he is working from home. so he thought why keep on paying rent in london when he can move with us until this corona thing finishes and when his office wants him back to report.

cant say no tbh as he is a close relative so yeah.

Scotbot

Eek. Covid could well still be here in a years time and he may still be working from home. Or he may lose his job. How big is your house? Where will he work? How would you feel if he is still there a year from now?  I would talk to him about how long is realistic from your point of view.