Lodger secured a room with a deposit 6 weeks ago and now can’t move in - My rights?

GDB2222

Please, please, please, when in hole, stop digging!


There is an obligation to inform lenders of a change in circumstances before the loan is granted. There is no ongoing obligation to do so later. 

There is an obligation to inform lenders if you move out of the house, particularly if you let it. I'm not aware of an obligation to inform lenders about lodgers. 

MaryNB

GDB2222 said:

I don't have lodgers, but AFAIK the deposit protection rules don't apply to lodgers.

They do. (ETA, sorry completely misread your post as deposit fees instead of protection, the former applies to lodgers, latter doesn't).

Lodgers of resident landlords and tenants of houses in multiple occupation are covered.
From shelter: https://england.shelter.org.uk/professional_resources/legal/costs_of_renting/tenant_fees_and_other_costs/banned_tenant_fees_and_penalties_for_landlords

OP the fee you charged was illegal. You cannot charge a non-refundable holding fee. Also if the fee was in excess of a week's rent it was also illegal. You should read the Tenant Fees Act 2019 so you don't illegally charge future lodgers. 

ETA: to clarify the holding deposit (no more than a week's rent) can be kept under the terms noted the act but it cannot be non- refundable in all cases. If the lodger continues with the tenancy or you are responsible for not progressing with the agreement you have to refund it (or count it as part of the rent). Only if the tenant bails can you keep it, it cannot be non-refundable in all scenarios. 

canaldumidi

Just to add

* the Tenant Fees Act applies to tenants. Not lodgers.

* there is no obligation on landlords to protect lodgers' deposits.

* the 'protection' afforded to lodgers (and landlords) is not laid down in statute (as in the case of tenancies). It is based on contract law- hence the importance of clear, written, contracts.

* why the OP chose to purchase, and/or let a room to a lodger, is really none of our business

MaryNB

canaldumidi said:

Just to add

* the Tenant Fees Act applies to tenants. Not lodgers.

* there is no obligation on landlords toprotect ledgers' deposits.

* the 'protection' afforded to lodgers (and landlords) is not laid down in statute (as in the case of tenancies). It is based on contract law- hence the importance of clear, written, contracts.

* why the OP chose to purchase, and/or let a room to a lodger, is really none of our business

From the act. A lodger is a licensee.

GDB2222

canaldumidi said:

Just to add

* the Tenant Fees Act applies to tenants. Not lodgers.

* there is no obligation on landlords toprotect ledgers' deposits.

* the 'protection' afforded to lodgers (and landlords) is not laid down in statute (as in the case of tenancies). It is based on contract law- hence the importance of clear, written, contracts.

* why the OP chose to purchase, and/or let a room to a lodger, is really none of our business

Sadly, that's simply wrong. As Mary said, the Act applies to licensees, which includes lodgers. 

I posted a link to the government's guide to the legislation earlier, and if you turn to page 18, it explains that the Act applies to lodgers, too. 

MaryNB

GDB2222 said:

canaldumidi said:

Just to add

* the Tenant Fees Act applies to tenants. Not lodgers.

* there is no obligation on landlords toprotect ledgers' deposits.

* the 'protection' afforded to lodgers (and landlords) is not laid down in statute (as in the case of tenancies). It is based on contract law- hence the importance of clear, written, contracts.

* why the OP chose to purchase, and/or let a room to a lodger, is really none of our business

Sadly, that's simply wrong. As Mary said, the Act applies to licensees, which includes lodgers. 

I posted a link to the government's guide to the legislation earlier, and if you turn to page 18, it explains that the Act applies to lodgers, too. 

Sorry I misread and incorrectly corrected your initial post. Yes deposit fee rules apply to lodgers, deposit protection doesn't. 

canaldumidi

I stand corrected. Apologies and thanks.

Belleofthebooks

Irishpearce26 said:

I think the big question here is 

Circumstances change, the OP mentioned not being able to work due to poor health and has a child. Obviously she would want to do all she can to keep her home and a roof over her head for her son. So she got a lodger. I don't think you need to inform your lender unless you can't pay your mortgage at all which wasn't the case for the OP until recently. Your comments aren't helpful at all. 

Irishpearce26

Belleofthebooks said:

Irishpearce26 said:

I think the big question here is 

Circumstances change, the OP mentioned not being able to work due to poor health and has a child. Obviously she would want to do all she can to keep her home and a roof over her head for her son. So she got a lodger. I don't think you need to inform your lender unless you can't pay your mortgage at all which wasn't the case for the OP until recently. Your comments aren't helpful at all. 

I've got all sympathy for people going through a hard time. The person whom the OP is asking if they can keep the deposit from is now not in work.  We don't know fully the circumstances of the OPs financials however if you are struggling or are reliant on lodgers to pay the mortgage then that's not sustainable. 

I would much rather members of a public forum were honest with me (which I've seen far harsher honesty on other posts) so i can see the realism of my circumstances and be able to deal with them.

OP this is my last comment on this thread, you have mentioned you suffer from PTSD. I hope I my comments haven't given you any distress if they have that was not my intention. If you are struggling financially seek support https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/if-youre-struggling-with-living-costs/ I know you said you are struggling to get a response but keep trying. Relying on lodgers to pay all your household bills each month seems pretty stressful maybe talk to family or friends about options.

I wish you all the best and hope you find a solution that works for you.

zagubov

Here in London single people renting rooms to lodgers to make ends meet is completely routine and many home-owners or renters find it essential.

Jobs come and go regularly and if residents were obliged to inform their banks of changes in their ciorcumstance, the banks phones would be busy all the time with homeowners notifying them of quitting or losing their jobs.