Can't afford house any more - what to do with lodger/tenant?

Badger_Lady

UPDATE:

I reached out to the lodger offering any help, and have now had an email directly from the council asking to clarify the situation, i.e. am I or am I not a resident landlord.

I'm incapable of bending the truth, so will reply honestly, but hope to do so in a way that gives me the best possible chance of a 'grey area' that they decide not to pursue. After all, if we can just agree on 'excluded occupier' (or lodger) as per the contract, everyone wins: I get to complete the sale, Lodger gets priority for rehousing, nobody has to drag it out through the courts.

Right?

housebuyer143

Badger_Lady said:

UPDATE:

I reached out to the lodger offering any help, and have now had an email directly from the council asking to clarify the situation, i.e. am I or am I not a resident landlord.

I'm incapable of bending the truth, so will reply honestly, but hope to do so in a way that gives me the best possible chance of a 'grey area' that they decide not to pursue. After all, if we can just agree on 'excluded occupier' (or lodger) as per the contract, everyone wins: I get to complete the sale, Lodger gets priority for rehousing, nobody has to drag it out through the courts.

Right?

Definitely reply honestly like you say and lay out everything you said here and see what the council say.
They will be quick enough to take note if they think they are not a lodger and will tell you, at least then you know where you stand rather than finding out down the line and being in a worse position. 
I still think offering the tenant financial help into a new house share is probably the best way, but the tenant probably is enjoying living alone for very cheap at your expense.

theartfullodger

Badger_Lady said:

The Housing Act 1988, Schedule 1, Part 1, Clause 10(1)(b) and (c) says...

(b)that, subject to Part III of this Schedule, the tenancy was granted by an individual who, at the time when the tenancy was granted, occupied as his only or principal home another dwelling-house which,—

(i)in the case mentioned in paragraph (a) above, also forms part of the flat; or

(ii)in any other case, also forms part of the building; and

(c)that, subject to Part III of this Schedule, at all times since the tenancy was granted the interest of the landlord under the tenancy has belonged to an individual who, at the time he owned that interest, occupied as his only or principal home another dwelling-house which,—

(i)in the case mentioned in paragraph (a) above, also formed part of the flat; or

(ii)in any other case, also formed part of the building

Yes, but the key line is ""  (c)that, subject to Part III of this Schedule, at all times since the tenancy was granted the interest of the landlord under the tenancy has belonged to an individual who, at the time he owned that interest, occupied as his only or principal home another dwelling-house which,—"""


You've been living abroad: The property has NOT been you only etc etc.  He is a tenant not a lodger. If this gets to court (as tenant is entitled to go to) you will lose.

I agree with the advice above - bribe him to leave.  

Artful: Landlord since 2000.  4 properties sold in last 5 years (ie bin there, done that..) When I started I thought I knew everything; BIG mistake, oh my stupidity, oh the hubris.  Spent time & money educating myself.  Still learning, still making mistakes but, apologies, not one this big and glaring.

Good luck: I fear you will need it!

Badger_Lady

OK, here's a de-sensitised version of my reply:

Thanks for reaching out! Yes that's correct - the house has been my home since 2007, and I've had numerous lodgers in that time.

At the end of 2019 I had an opportunity to work overseas - my lodgers at the time moved out and I accepted an offer to sell the property. However, when the Pandemic started in early 2020 the buyers pulled out and I was stranded overseas due to travel restrictions. 

My neighbour introduced me to Lodger1 and his friend Lodger2 who needed a place to move to, and we met via Skype. I explained that it was my principal home but that I may be periodically away - my bedroom is therefore out of bounds but they were welcome to occupy the other two bedrooms and share the living room/kitchen with me, using my furniture etc., for a monthly rent that would contribute towards costs. 

We all agreed and signed a Houseshare Agreement, accompanied by an inventory and house rules, which is attached to this email. 

At that point I didn't know when I would physically be back home, because I was dependent on pandemic lockdowns and any work changes, all of which were quite unpredictable. In fact I lost my job but landed another one that involved travel and the lodgers were kind enough to forward me important post wherever I happened to be at that time. 

However, the cost of the mortgage and bills started to rise, particularly during 2022, and I struggled to keep paying my share.

On Xth May this year I asked Lodger1 and Lodger2 what they would rather do - I intended to move out permanently, so would they like to increase their rent to stay on without me (at which point it would become their exclusive home)? Or would they rather also move out so I can sell it?

After considering getting a new person in to replace me, on Xth June Lodger2 told me he'd decided to move out so I could put it on the market. I invited Lodger1 to stay on while that happens, but wrote him an eviction email with 2 months notice (to comply with the 'reasonable notice' requirement), so he would have something in writing to show the date he'll be homeless if not re-housed. In return, he was kind enough to allow the estate agents to host viewings while I was away.

I literally cannot afford one more payment on the house - I have set up an agreement with Halifax to pause mortgage interest payments until September, and have accepted a low offer of sale on the property which I hope will also go through in September. The offer allows me to pay off the debts and selling costs but does not leave me with any cash profit, even after 16 years of ownership (mortgage is interest-only). Lodger1's leaving date is Xth September as per the buyer's requirement that they take possession of a vacant property.

Lodger1 has only ever contributed one-third of the housing cost, with Lodger2 and I paying the rest, and he cannot afford to take it over on his own.

I hope that helps to clarify the situation and I'm more than happy to answer any other questions. I'm very concerned for Lodger1 that he's been struggling to find somewhere to go - this situation has been incredibly difficult for him and he shouldn't have to deal with the stress. I'm happy to write references, help look for places - whatever he needs. He's been a solid housemate for over 3 years, has always paid his share and looked after our home, so I'll happily recommend him.

Is there anything more I can do to help him?

MultiFuelBurner

Help yourself first

Even to sell quickly on the figures you have provided you could get £170,000+

You can then afford to help the lodger move on if necessary. Which I think you should consider given the uncertainty of your legal standing.

hazyjo

I know money shouldn't be our main focus in life, but 'kindness' is a tough lesson - you could have been charging full rent and prob getting more from one tenant, and you should be selling for market value, not 25% less. Fine if you're loaded, but not at the detriment of your own finances/roof over your head. You're now having to sell your home, basically due to your own kindness. I have a similar friend who would give you her last penny or the coat off her back and go without. Sometimes people take advantage - and it's extremely hard to see that if you think it's your own choice. I do wish you every ounce of luck - let us know how you get on.

Badger_Lady

hazyjo said:

I know money shouldn't be our main focus in life, but 'kindness' is a tough lesson - you could have been charging full rent and prob getting more from one tenant, and you should be selling for market value, not 25% less. Fine if you're loaded, but not at the detriment of your own finances/roof over your head.

I could, yes. I'm far from loaded but I remember being poor, and I work with some of the world's poorest people... I think it's my responsibility to help as much as I can.

housebuyer143

hazyjo said:

I know money shouldn't be our main focus in life, but 'kindness' is a tough lesson - you could have been charging full rent and prob getting more from one tenant, and you should be selling for market value, not 25% less. Fine if you're loaded, but not at the detriment of your own finances/roof over your head. You're now having to sell your home, basically due to your own kindness. I have a similar friend who would give you her last penny or the coat off her back and go without. Sometimes people take advantage - and it's extremely hard to see that if you think it's your own choice. I do wish you every ounce of luck - let us know how you get on.

The term is "no good deed goes unpunished" and everyone realises this sooner or later to a greater or lesser extent...

[Deleted User]

Hopefully things work out. 

Not a fan of business with friends and family. 

gettingtheresometime

If they are classed as tenants then has the house complied with the regulations brought in December 22?