Renting a spare room out and the home remains your only residence - mortgage implications?

uberscuba112

Do you still require consent to let from the lender? Is this scenario treated any differently from renting the whole property out? I am already aware of the tax reliefs you can get under rent a room scheme etc. 

I've already looked at my lender's T&Cs and it simply says "if you let your property in future then you need to let us know..." it is essentially worded as if you vacate the property and you rent the entire property out. Nothing specific mentioned about renting a room.

I am new to this and so just looking for some general advice on whether merely renting a bedroom out still requires 'consent to let' particularly if you did it under an informal arrangement i.e. to a friend temporarily (3 months - 1 year max).

I will of course raise this with my lender if the time comes that I actually anticipate doing this, just looking for some general advice and interested to hear from anyone who has actually done this.

Thanks

macman

'Letting it out' means that you vacate the property and a tenancy is created when your tenant moves in.
'Rent a room' is merely taking in a lodger, who has no tenancy rights whatsoever. Completely different things.
You can't have an 'informal' lodger: if they pay you rent in return for a room then they have the same rights as any lodger, even though those rights are minimal. For that reason, any such arrangement should be agreed in a written contract.

user1977

Read your mortgage conditions - some do expect you to seek consent for lodgers. 

K_S

uberscuba112 said:

Do you still require consent to let from the lender? Is this scenario treated any differently from renting the whole property out? I am already aware of the tax reliefs you can get under rent a room scheme etc. 

I've already looked at my lender's T&Cs and it simply says "if you let your property in future then you need to let us know..." it is essentially worded as if you vacate the property and you rent the entire property out. Nothing specific mentioned about renting a room.

I am new to this and so just looking for some general advice on whether merely renting a bedroom out still requires 'consent to let' particularly if you did it under an informal arrangement i.e. to a friend temporarily (3 months - 1 year max).

I will of course raise this with my lender if the time comes that I actually anticipate doing this, just looking for some general advice and interested to hear from anyone who has actually done this.

Thanks

@uberscuba112 Most lenders don't have any issues with borrowers taking on lodgers, as long as you aren't turning the property into an HMO by taking on too many.

In your place, since it looks like the T&Cs don't prohibits lodgers or ask that you take explicit permission in advance, I would just go ahead with it. Don't rely on the lender customer service lines for this information, they don't always know the difference between a lodger and a tenant and can give you the wrong information.

sevenhills

I had a lodger, I let my mortgage provider know and they weren't bothered.

FreeBear

macman said: 'Rent a room' is merely taking in a lodger, who has no tenancy rights whatsoever.

But... You do need to be careful so as not to create a tenancy. Furnished room, no lock on the door (except thumb latch), room accessible for cleaning and/or safety checks, etc. Do NOT use the word "tenant" or "tenancy" anywhere in the contract - The contract should be headed "Licence to Occupy".

Don't give a fixed term in the contract, and have clauses that allow you to terminate with minimal notice under certain conditions.