Any way around taking a lodger if mortgage lender doesn't allow?

Hannimal

I have just gotten a mortgage through platform, I've moved in, all is going well. However, a couple of things have very suddenly changed and I need advice. First, I have a sudden need to travel abroad as someone close to me does not have long left and I want to see them before they die. Due to the virus and self isolation rules, I expect I need around a month of being away. Simultaneously, one of my close friends is facing housing difficulty and possible homelessness. I won't get into the details as it is not for me to share but I trust this person and his situation is not his fault. I have a spare room so I could easily have him stay for the 4 months he needs housing for and it would be a huge relief for me to have someone in the house looking after my dog while I am away. However, my mortgage lender (Platform) only allows property letting after the first 12 months from mortgage start date. I have had my mortgage for a month. I can't see any mention whether this also applies to lodgers in my tc and cs.

This person is a good friend so while ideally he would pay some rent (we talked about £70 per week, excluding the time he'd house-sit) I would be quite happy for him to just buy the furniture needed for the spare room and to contribute to bills. Can I in any way help my friend without breaching my mortgage agreement? If I didn't ask him to contribute any money toward bills, furniture etc would that change anything? What might be my options?

I know and understand that in any case if I take someone to live in here I must first seek permission from the lender and I wouldn't do anything that is in breach of contract. 

Thanks for any advice. 

Thrugelmir

Check that any insurance cover you have is valid. 

Hannimal

oldbikebloke said:

you are conflating 2 issues
- a lodger is not a tenant
- a tenant is not a lodger 

you do not LET a property to a LODGER

I thought I would as they'd pay rent. Okay. Either way I would need to speak with my lender first but I can't see anything about lodgers specifically in the tcs and cs. Sounds like I might be panicking over nothing ? I will ring the lender tomorrow to ask

oldbikebloke

Hannimal said:

This person is a good friend so while ideally he would pay some rent (we talked about £70 per week, excluding the time he'd house-sit) I would be quite happy for him to just buy the furniture needed for the spare room and to contribute to bills. Can I in any way help my friend without breaching my mortgage agreement? If I didn't ask him to contribute any money toward bills, furniture etc would that change anything? What might be my options?

what on earth are you going on about
rent is rent, whether you spend it on "bills", "furniture" (whose???????) or your own weed habit 

you are conflating 2 issues
- a lodger is not a tenant
- a tenant is not a lodger 

you do not LET a property to a LODGER

Hannimal

Thrugelmir said:

Check that any insurance cover you have is valid. 

I understand I'd also need to let my insurance know. They don't know about the dog either so I need to ring them this week to speak. 

hazyjo

A lodger will probably be fine, but it does not sound like you understand the definition.

If you are out of the country and someone (anyone!) is living in your property paying you rent (or whatever you want to call it), they will be a tenant. If you remain in the property and they have their own bedroom and share most other areas with you, they are a lodger.

You cannot change that.

There are many responsibilities of a landlord. And, like you say, you probably won't be allowed.

Just have your month's holiday, and check your insurance terms. Gawd knows where your dog will go though for that long. Any family to look after it (in their home, not yours)?

If your friend is facing housing difficulty/homelessness, I don't mean to be rude, but the worst thing you could do is allow them to live there when you're not there. If they are waiting to be housed by the council, they will need to be evicted. That does not mean you just say 'you can go now', it means you literally have to legally evict them. It's likely to take over a year. You won't be able to live there either, unless they invite you as their guest. You'll still be the landlord though - and their lodger. Not vice versa.

Mrcsmrs

Could your friend not just be your dog sitter for the time you’re away? We use a house and dog sitting service whilst we’re away and I’ve never thought of it as being something I should tell our mortgage lender about. She just comes in, stays for the weeks we’re away and then goes home again after. Ok you’re not going to be sending your friend home again after, but does it need to be any more complicated than that? Obviously not suggesting you should breach any terms by your lender, but honestly have never even thought of our dog sitter as a tenant despite the fact that we aren’t there when she is. Unless we’ve been doing it wrong for years? 

Edited to add that obviously they couldn’t pay you anything whilst living there without you! 

oldbikebloke

Mrcsmrs said:

honestly have never even thought of our dog sitter as a tenant despite the fact that we aren’t there when she is. Unless we’ve been doing it wrong for years? 

Edited to add that obviously they couldn’t pay you anything whilst living there without you! 

resident landlord + person = lodger = rent a room tax allowance and pay tax on income > allowance
non resident LL + person = tenant = pay tax on rent - allowable cost = "net profit"

ElephantBoy57

hazyjo said:

If you are out of the country and someone (anyone!) is living in your property paying you rent (or whatever you want to call it), they will be a tenant. If you remain in the property and they have their own bedroom and share most other areas with you, they are a lodger.

If the OP is going for a holiday, his friend will still be classed as a lodger, because he will still be paying council tax and his house will still be his main residence.

I telephoned my mortgage company, they weren't bothered about my lodger, it's my house after all.

A lodger has very few rights, so long as that is clear.

hazyjo

ElephantBoy57 said:

hazyjo said:

If you are out of the country and someone (anyone!) is living in your property paying you rent (or whatever you want to call it), they will be a tenant. If you remain in the property and they have their own bedroom and share most other areas with you, they are a lodger.

If the OP is going for a holiday, his friend will still be classed as a lodger, because he will still be paying council tax and his house will still be his main residence.

I telephoned my mortgage company, they weren't bothered about my lodger, it's my house after all.

A lodger has very few rights, so long as that is clear.

Fair point. Not entirely sure it's that black and white though I should've paid more attention to the fact it was only a month.

saajan_12

Just have the friend stay as a dog sitter, paying nothing. This would be seen as your main residence and wouldn't invoke landlord-tenant responsibilities given the below facts (note not an exhaustive list, just a few factors which demostrate the facts of the situation):
- short term absence for a short holiday only
- majority of your belongings still in the property
- your work, doctors etc still registered locally
- friend not paying rent

Then when you return, the setup changes, and friend stays as a lodger with a resident landlord paying £x rent. Cleanest if this includes all bills, furniture (except things he takes with him). The total contribution from friend would be taxed if it exceeds the £7.5k annual rent a room allowance assuming the other conditions are met.