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Whats the income from my lodgers worth
collectors
Posts: 240 Forumite
Hi, not sure what the value of my property is worth but i am a sort of live in landlord & rent 3 bedrooms out with a £17.5k income per year inc bills from all the lodgers. If i sell the house, i would assume this has a value, but what??.
Cheers
Cheers
0
Comments
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Sort of live in landlord :T
Sorry but it has no value.0 -
Probably not. You would need to get rid of the lodgers before sale and most buyers wont be interested in doing that.
Hopefully you realise that ...
(a) you are running an HMO, which may need to be licensed depending on the number of storeys and the Local Council rules.
(b) you have made a proportion of the sale proceeds potentially liable to Capital Gains Tax.0 -
Probably not. You would need to get rid of the lodgers before sale and most buyers wont be interested in doing that.
Hopefully you realise that ...
(a) you are running an HMO, which may need to be licensed depending on the number of storeys and the Local Council rules.
(b) you have made a proportion of the sale proceeds potentially liable to Capital Gains Tax.
I'm not classed as a HMO. In my area, bungalows don't come under HMO as they are not classed as a fire risk. We have letters from our local council inspector to confirm this.
CGT can only be sorted when i sell.
It might only be me, but if i was a young couple & had an opportunity to have an extra 17.5K income to help pay the mortgage, i am sure it would be worth a thought, as one or both of them could have an extra £7.5k tax relief ??0 -
collectors wrote: »I
It might only be me, but if i was a young couple & had an opportunity to have an extra 17.5K income to help pay the mortgage, i am sure it would be worth a thought, as one or both of them could have an extra £7.5k tax relief ??
Your buyer could make use of the extra rooms by getting lodgers but that opportunity won't increase the value of your house.0 -
collectors wrote: »
It might only be me, but if i was a young couple & had an opportunity to have an extra 17.5K income to help pay the mortgage, i am sure it would be worth a thought, as one or both of them could have an extra £7.5k tax relief ??
Anybody wishing to do that would already know that and could buy any other house that has the same number of rooms ... and nobody wants to "inherit somebody else's lodgers" - they might not like them.0 -
collectors wrote: »I'm not classed as a HMO. In my area, bungalows don't come under HMO as they are not classed as a fire risk. We have letters from our local council inspector to confirm this.
CGT can only be sorted when i sell.
It might only be me, but if i was a young couple & had an opportunity to have an extra 17.5K income to help pay the mortgage, i am sure it would be worth a thought, as one or both of them could have an extra £7.5k tax relief ??
It it were me, I wouldn't want a load of strangers living in my house. But any house with a spare room can be let to lodgers. Your house isn't special in that respect. So stop kidding yourself that it will somehow add to the value.
If you want to know what it's worth, ask an estate agent."Real knowledge is to know the extent of one's ignorance" - Confucius0 -
Hi,
is the 17.5k your only income or do you have a job as well?
Do the lodgers have the freedom of the house, kitchen, bathroom, etc,
Or are rooms en suite with a microwave?0 -
collectors wrote: »I'm not classed as a HMO. In my area, bungalows don't come under HMO as they are not classed as a fire risk. We have letters from our local council inspector to confirm this.
CGT can only be sorted when i sell.
It might only be me, but if i was a young couple & had an opportunity to have an extra 17.5K income to help pay the mortgage, i am sure it would be worth a thought, as one or both of them could have an extra £7.5k tax relief ??
You are still classed as an HMO even if not Licenseable. HMO Management Regulations still apply (though less likely to be enforced).
You might get interest from a buyer wishing similar, but it is not going to change the price vs another property of similar size.0 -
A single person/couple buying any 4-bed house can let three rooms to lodgers, so your 4-bed house is priced in line with other 4-bed houses.0
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define "sort of"collectors wrote: »Hi, not sure what the value of my property is worth but i am a sort of live in landlords
either it is your main home and you live there, or it isn't
lodger income has zero valuecollectors wrote: »rent 3 bedrooms out with a £17.5k income per year inc bills from all the lodgers. If i sell the house, i would assume this has a value, but what??.
No one in their right minds would buy a house with someone else's lodgers in situ, and anyway they would struggle immensely to get a mortgage to be able to buy it in the first place, since they will not get vacant possession0
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