Lodger / Tenant Conundrum...

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    Lodger / Tenant Conundrum...

    Hello all,

    Looking for a bit of advice as I can't find a definitive answer online (I've probably missed it!!)

    My girlfriend is moving in with me and wants to rent out her flat. She hasn't owned the property long enough yet for the 5yr requirement in the Mortgage before she can let out the entire place.

    The bank advised her that she can rent out 1 bedroom under a lodgers agreement, but that she wouldn't need to stay in the property herself. I know this isn't correct as it can effectively turn the agreement into an AST, however what I can't find is an answer to how often she would have to stay at her place to prevent the agreement from becoming an AST?

    Apologies if I haven't worded that very well, my neighbours are away and their house alarm has been going off for 27 hours!
    Last edited by red_boots2; 16-09-2016, 11:13 AM. Reason: Spelling errors.

    #2
    It's in Housing Act 1988 the bit that lists those tenancies that cannot be assured (AST is but a special sort of assured).

    Bank is wrong. Tenant likely will find out, due for non-protection if deposit (up to 3x deposit.) & tough to evict as any s21 invalid.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Whether it's a tenancy or not is determined (essentially) by exclusive possession.
      It's very difficult to draw up an agreement where the landlord isn't resident that has any chance of not being a tenancy (even if it's not an AST).

      Over time people have tried pretty much every trick in the book to work round the issue (lodgers having far fewer rights than tenants), and they almost invariably fail.
      I agree that the bank is wrong.

      Depending on the location, airBnB or a holiday let might be possible.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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        #4
        Originally posted by jpkeates View Post
        It's very difficult to draw up an agreement where the landlord isn't resident that has any chance of not being a tenancy (even if it's not an AST).
        I don't think that's true.

        What is difficult is to succeed in having a sham agreement.

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          #5
          jpkeates,

          Thank you. That is what I had thought, and am tempted by the Air BnB route, but not sure how feasible it is due to the location.

          The girlfriend would probably only stay there one night a week depending on work (she says 3-4, but she hasn't been back to her place in 2months so I think that's unlikely)

          Comment


            #6
            Originally posted by jjlandlord View Post
            I don't think that's true.

            What is difficult is to succeed in having a sham agreement.
            Made me laugh.

            Absolutely spot on.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              Depending on the location, airBnB or a holiday let might be possible. ? ? ?

              Your mortgage company may insist on an A.S.T.

              Your lease may state to
              1) ask for permission to let your flat, and that means permission is required for every change of tenant.
              2) not to let the flat for less than 6 months.
              3) not to let the flat, except only with a minimum of six months and / or by A.S.T.
              4) extra wear and tear on the common parts wil occcur and you could be responsible for rectifying the damage that will inevitably ensue.
              5) The block insurance may require increased premiums for so many strangers being there, and so many changes.
              Then may even cancell the insurance.

              Read your lease, talk to the freeholder.

              Comment


                #8
                Originally posted by jjlandlord View Post
                I don't think that's true.

                What is difficult is to succeed in having a sham agreement.
                Agree with JJ that any agreement written would/could easily be interpreted as a sham. She needs to sell up are renegotiate with the mortgage provider. Would it not be easier for you to move in with her and rent your place out? Unfortunately legal and above board rarely means achieving what you want. :-(
                I may be a housing professional but my views, thoughts, opinions, advice, criticisms or otherwise on this board are mine and are not representative of my company, colleagues, managers. I am here as an independent human being who simply wants to learn new stuff, share ideas and interact with like minded people.

                Comment


                  #9
                  Darth Wookie,

                  Sadly it wouldn't be easier for a number of reasons.

                  The advice about selling or renegotiating is what I was expecting to hear, so I am happy I am on the same page as everyone even if it isn't the ideal scenario.

                  Thanks everyone!

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