PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Lodger and Mortgage
Thomas_Holding
Posts: 380 Forumite
We have a Mortgage and I am pretty sure that when we took it out, I asked if we could have a lodger.
However I just looked at it and it does not say yes or no (it says nothing about it).
So does this mean that we can? (I will phone tomorrow to make sure).
What should we put in the contract to make sure that they have no right to the property?
Thanks in advance
However I just looked at it and it does not say yes or no (it says nothing about it).
So does this mean that we can? (I will phone tomorrow to make sure).
What should we put in the contract to make sure that they have no right to the property?
Thanks in advance
0
Comments
-
PS we were going to charge the person a fixed sum but housing benefit want to know if some of it goes to electricity - it sort of does - any ideas what to do? Should I say £x for rent and £y for electricity or £x+y for the whole amount?0
-
If your mortgage agreement does not say you can't, then you can.
It's unusual for a lodger to be a problem for lender.
LODGERS (Licencees/Excluded Occupiers)
A lodger (broadly) lives in the same property with a resident landlord & shares facilities. Unlike tenants, lodgers have few rights.
The Housing Act 1988 provides definitions of 'Resident Landlord' & 'same property' (S31 & Schedule 1 (10).
See:
LodgerLandlord (21 tips from solicitor Tessa Shepperson + General information site)
Landlordzone (Various articles on taking in lodgers)
Renting out rooms in your home (Government info)
Rent a Room Scheme (HMRC guide for tax-free income from lodgers)0 -
Thomas_Holding wrote: »We have a Mortgage and I am pretty sure that when we took it out, I asked if we could have a lodger.
However I just looked at it and it does not say yes or no (it says nothing about it).
So does this mean that we can? (I will phone tomorrow to make sure).
What should we put in the contract to make sure that they have no right to the property?
Thanks in advance
A mortgage contract isn't a rule book for everything you can (but not obliged to) do.. what if I want to dance at midnight? It simply states a few things you MUST do (e.g. pay monthly payments, keep insurance) and a few things you MUST NOT do (e.g. sell property, move out). If it doesn't mention something then there's no prohibition.Thomas_Holding wrote: »PS we were going to charge the person a fixed sum but housing benefit want to know if some of it goes to electricity - it sort of does - any ideas what to do? Should I say £x for rent and £y for electricity or £x+y for the whole amount?
I would just do a fixed all in amount, because
- you can't overcharge if you're reselling electricity, so if you charge separately for it, you have to be careful its the exact amount
- avoid debates about who used how much electicity0 -
When I took in lodgers I just charged an all-in rent.
It's probably best for you to do so from the pov of the tenant - as benefit levels are so incredibly low for childless people these days that you don't want them to have the DWP to have the excuse of saying "Oh £x is attributable to electric - so we won't pay the lodger that £x and they must find it from their personal benefit".
Goodness knows - people on benefits often don't get their rent covered in full anyway these days and have to pay a part of it themselves from their personal benefit:eek:0 -
True but I don't want to get into trouble with the benefits office.A mortgage contract isn't a rule book for everything you can (but not obliged to) do.. what if I want to dance at midnight? It simply states a few things you MUST do (e.g. pay monthly payments, keep insurance) and a few things you MUST NOT do (e.g. sell property, move out). If it doesn't mention something then there's no prohibition.
I would just do a fixed all in amount, because
- you can't overcharge if you're reselling electricity, so if you charge separately for it, you have to be careful its the exact amount
- avoid debates about who used how much electicity0 -
Thomas_Holding wrote: »PS we were going to charge the person a fixed sum but housing benefit want to know if some of it goes to electricity - it sort of does - any ideas what to do? Should I say £x for rent and £y for electricity or £x+y for the whole amount?
If you say some of the money is for energy, then that will not be included in the housing benefit, it may leave your lodger worse off.
I phoned my BS about my lodger, they made a note of it, but they were not bothered; its your house.0 -
What's the "it" you're looking at?Thomas_Holding wrote: »However I just looked at it and it does not say yes or no (it says nothing about it).
The relevant document is probably a booklet of standard mortgage conditions for your lender - if you can't find a copy then it may be on their website (e.g. this is the Nationwide's: https://www.nationwide.co.uk/-/media/MainSite/documents/about/media-centre-and-specialist-areas/information-for-lawyers/Mortgage%20Conditions%20Eng%20and%20Wales%20-%20Feb%2012.pdf , where the answer is at clause 11.3)0 -
I looked at my contract from several years ago. I cannot find any information on the Barclays website (it was Woolwich from 10 years ago).What's the "it" you're looking at?
The relevant document is probably a booklet of standard mortgage conditions for your lender - if you can't find a copy then it may be on their website (e.g. this is the Nationwide's: https://www.nationwide.co.uk/-/media/MainSite/documents/about/media-centre-and-specialist-areas/information-for-lawyers/Mortgage%20Conditions%20Eng%20and%20Wales%20-%20Feb%2012.pdf , where the answer is at clause 11.3)0 -
True but is it honest to do this? Surely some of the money is for the cost of electricity, hot water etc?sevenhills wrote: »If you say some of the money is for energy, then that will not be included in the housing benefit, it may leave your lodger worse off.
I phoned my BS about my lodger, they made a note of it, but they were not bothered; its your house.
Personally I am not bothered about this, but I just want to do what is right.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards