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    • Thomas Holding
    • By Thomas Holding 17th May 18, 8:57 PM
    • 64Posts
    • 8Thanks
    Thomas Holding
    Lodger and Mortgage
    • #1
    • 17th May 18, 8:57 PM
    Lodger and Mortgage 17th May 18 at 8:57 PM
    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
Page 1
    • Thomas Holding
    • By Thomas Holding 17th May 18, 9:03 PM
    • 64 Posts
    • 8 Thanks
    Thomas Holding
    • #2
    • 17th May 18, 9:03 PM
    • #2
    • 17th May 18, 9:03 PM
    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?
    • G_M
    • By G_M 17th May 18, 9:07 PM
    • 46,179 Posts
    • 55,898 Thanks
    G_M
    • #3
    • 17th May 18, 9:07 PM
    • #3
    • 17th May 18, 9:07 PM
    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)
    • saajan_12
    • By saajan_12 17th May 18, 11:20 PM
    • 1,528 Posts
    • 1,135 Thanks
    saajan_12
    • #4
    • 17th May 18, 11:20 PM
    • #4
    • 17th May 18, 11:20 PM
    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
    Originally posted by Thomas Holding
    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.

    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?
    Originally posted by Thomas Holding
    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 electicity
    • moneyistooshorttomention
    • By moneyistooshorttomention 18th May 18, 6:02 AM
    • 17,373 Posts
    • 48,223 Thanks
    moneyistooshorttomention
    • #5
    • 18th May 18, 6:02 AM
    • #5
    • 18th May 18, 6:02 AM
    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
    If you feel like you don't fit in in this world, it's because you are here to help create a new one.
    • Thomas Holding
    • By Thomas Holding 18th May 18, 8:41 AM
    • 64 Posts
    • 8 Thanks
    Thomas Holding
    • #6
    • 18th May 18, 8:41 AM
    • #6
    • 18th May 18, 8:41 AM
    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 electicity
    Originally posted by saajan_12
    True but I don't want to get into trouble with the benefits office.
    • sevenhills
    • By sevenhills 18th May 18, 10:52 AM
    • 1,836 Posts
    • 703 Thanks
    sevenhills
    • #7
    • 18th May 18, 10:52 AM
    • #7
    • 18th May 18, 10:52 AM
    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?
    Originally posted by Thomas Holding

    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.

    • davidmcn
    • By davidmcn 18th May 18, 11:00 AM
    • 9,306 Posts
    • 9,932 Thanks
    davidmcn
    • #8
    • 18th May 18, 11:00 AM
    • #8
    • 18th May 18, 11:00 AM
    However I just looked at it and it does not say yes or no (it says nothing about it).
    Originally posted by Thomas Holding
    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)
    • Thomas Holding
    • By Thomas Holding 18th May 18, 11:15 AM
    • 64 Posts
    • 8 Thanks
    Thomas Holding
    • #9
    • 18th May 18, 11:15 AM
    • #9
    • 18th May 18, 11:15 AM
    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)
    Originally posted by davidmcn
    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).
    • Thomas Holding
    • By Thomas Holding 18th May 18, 11:21 AM
    • 64 Posts
    • 8 Thanks
    Thomas Holding
    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.
    Originally posted by sevenhills
    True but is it honest to do this? Surely some of the money is for the cost of electricity, hot water etc?
    Personally I am not bothered about this, but I just want to do what is right.
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