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    • collectors
    • By collectors 8th Jul 18, 12:51 PM
    • 97Posts
    • 25Thanks
    collectors
    Whats the income from my lodgers worth
    • #1
    • 8th Jul 18, 12:51 PM
    Whats the income from my lodgers worth 8th Jul 18 at 12:51 PM
    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
Page 1
    • mrginge
    • By mrginge 8th Jul 18, 1:01 PM
    • 4,619 Posts
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    mrginge
    • #2
    • 8th Jul 18, 1:01 PM
    • #2
    • 8th Jul 18, 1:01 PM
    Sort of live in landlord

    Sorry but it has no value.
    Last edited by mrginge; 08-07-2018 at 1:03 PM.
    • anselld
    • By anselld 8th Jul 18, 1:05 PM
    • 5,865 Posts
    • 5,586 Thanks
    anselld
    • #3
    • 8th Jul 18, 1:05 PM
    • #3
    • 8th Jul 18, 1:05 PM
    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.
    • collectors
    • By collectors 8th Jul 18, 1:33 PM
    • 97 Posts
    • 25 Thanks
    collectors
    • #4
    • 8th Jul 18, 1:33 PM
    • #4
    • 8th Jul 18, 1:33 PM
    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.
    Originally posted by anselld
    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 ??
    • Mojisola
    • By Mojisola 8th Jul 18, 1:36 PM
    • 29,786 Posts
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    Mojisola
    • #5
    • 8th Jul 18, 1:36 PM
    • #5
    • 8th Jul 18, 1:36 PM
    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 ??
    Originally posted by collectors
    Your buyer could make use of the extra rooms by getting lodgers but that opportunity won't increase the value of your house.
    • PasturesNew
    • By PasturesNew 8th Jul 18, 1:38 PM
    • 64,197 Posts
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    PasturesNew
    • #6
    • 8th Jul 18, 1:38 PM
    • #6
    • 8th Jul 18, 1:38 PM

    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 ??
    Originally posted by collectors
    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.
    • kinger101
    • By kinger101 8th Jul 18, 1:38 PM
    • 4,466 Posts
    • 6,209 Thanks
    kinger101
    • #7
    • 8th Jul 18, 1:38 PM
    • #7
    • 8th Jul 18, 1:38 PM
    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 ??
    Originally posted by collectors
    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.
    • frugalmacdugal
    • By frugalmacdugal 8th Jul 18, 1:39 PM
    • 6,334 Posts
    • 5,464 Thanks
    frugalmacdugal
    • #8
    • 8th Jul 18, 1:39 PM
    • #8
    • 8th Jul 18, 1:39 PM
    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?
    Y'all take care now.
    • anselld
    • By anselld 8th Jul 18, 1:40 PM
    • 5,865 Posts
    • 5,586 Thanks
    anselld
    • #9
    • 8th Jul 18, 1:40 PM
    • #9
    • 8th Jul 18, 1:40 PM
    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 ??
    Originally posted by collectors
    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.
    • AdrianC
    • By AdrianC 8th Jul 18, 1:45 PM
    • 18,358 Posts
    • 16,588 Thanks
    AdrianC
    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.
    • 00ec25
    • By 00ec25 8th Jul 18, 1:52 PM
    • 6,963 Posts
    • 6,649 Thanks
    00ec25
    Hi, not sure what the value of my property is worth but i am a sort of live in landlords
    Originally posted by collectors
    define "sort of"

    either it is your main home and you live there, or it isn't


    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??.
    Originally posted by collectors
    lodger income has zero value

    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 possession
    • marliepanda
    • By marliepanda 8th Jul 18, 2:02 PM
    • 6,562 Posts
    • 14,105 Thanks
    marliepanda
    Stop trying to wring money out of your property because you can!!!8217;t get planning permission to build in your garden...
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