Great video Jamie. I'd do this but the Mrs doesn't want anyone else in the house. Time to kick her out and get me a couple of lodgers. I don't need that kind of negativity in my life 😁
As long as your total income doesnt exceed £7,5k, you can have many lodgers, subject to spare rooms being available etc, Annexes are the ones to be careful about, especially if they have their own kitchen, sleep and bathroom facilities, as these are strictly classified as a tenant arrangement and as such, subject to income tax. Jamie, what would the cgt liabilities be on such an self contained Annexe arrangement?
@@superwas12No, the £7,500 pa limit is for the Rent-A-Room scheme and has zero to do with the number of lodgers you can have. The limit for lodger numbers would be determined by the number of spare bedrooms, what the mortgage company says (if you have a mortgage), whether the number would constitute a HMO under that Local Authority and issues of overcrowding.
Thank you, this has been really helpful. I’m 22 and saved a lot of money over lockdown and I thought it would be easy buying a house with my savings but the mortgage rate is extortionate. Having a lodger in will significantly help me with bills
My lodger's deposit came from charity. After damages are deducted, there is £100 left. Should I return it to the charity, give it to my lodger, or keep it?
Hey if i bought a 3/4 bed house and lodged out 3 of the rooms, creating a potential income of (3x700 = 2100). Thats potentially 25.2k a year - the 7.5k that 17.7k i need to pay tax on. My question is what are my allowable expenses the online info is unclear can i expense mortgage interest, utility and repairs etc?
Thanks a lot for your very helpful video. It helped me to understand the basic information regarding lodger. I would like to ask you how it is if I have would buy a shared ownership property? Shell I tell bank that this is what I want to do, and is bank can say no, and if they will say no, can I find a solicitor to fight for justice? And how about if the housing association will say no? Can I fight it with a solicitor? Please advise. Thanks a lot !!! I appreciate it.
Great video as always! I do lodgers over a year now. My experience with them except 1 downside is pretty good - of course you need patients and compromise a lot, but it’s providing me a pretty insane return (£12k/annum) on my investment (£10k), however it is not as black and white, you need some special things when you have lodgers: landlord insurance and also you must have a gas safety certificate every year, if your lodgers pay by week you must provide them a payment rota too, and I highly recommend a cleaner to look after the place because your lodger won’t, also may you need an additional bin for you rubbish and may the council charge extra on it… :( otherwise is a brilliant strategy to make money easy and tax free (almost)! 😉
I'm planning on doing this. Can you quickly explain why you got landlord insurance instead of home insurance? Some home insurance providers are happy with lodgers as long as you let the m know
Thank you very much for your video. This is very informative. And your contents are very helpful. I have a question Jamie. I’m intending to get a lodger but i own a shared ownership. Do you think this will be allowed. I will check with my housing association as well. Thank you in advance.
What would you do if the lodger's contract is coming to an end and they refuse to pay their last month's rent and want to use their deposit (which is equal to monthly rent) to cover the last month's rent before they move out?
As you are living in the property, then a standard residential mortgage is fine, but make sure the lender allows lodgers, elsewise, go to another lender.
Hi great video, one question: What if I rent out 2 rooms, let's say for £5000 each room which would be 10,000 income for the 2 rooms in a year would it be tax free as each room income was less than £7500 or because the overall income for the 2 rooms is over 7,500 would i need to complete a tax return?
I am living in a council home that I rent from the council. I am currently receiving universal credit. My Is it still possible to opt in to the scheme?
I know of a landlord who selected his lodger based upon what music they liked. Only did 5 minute interviews over the phone. A month later the lodger got drunk and trashed the room.
A landlord might be pleased that it reduces the chances of you being unable to pay the rent. Expect your rent to be raised substantially at the next review.
hey Jamie was wondering if you would be able to do a video on deal packaging and how to go about it, please? It's an avenue I'm looking to go down to raise to begin my property investment journey just not 100% sure on how to begin Thanks, love the videos btw!
Exactly! what is the answer. Got a mortgage offer and they saw money saying rent on my bank statement Now finance adviser wants to know if l have permission from landlord. ( I'm in shared ownership). And do Airbnb on short-term stays.
@@johnporcella2375bro thanks alot! I see you answering each and every single question even though you are about a year late… your impact has been really helpful thank you very much!!
Not a question related to property but i am currently working a 30k(annually )job and i am 19, i wanna be a bricklayer because of the money. I got a opportunity to do bricklaying apprenticeship which will take 2 years but after 3 years i can earn 40-50k annually and i am just confused should i leave my current job and do apprenticeship or should i just continue this job and after 1 year buy my first but-to-let because in 3 years i can easily earn 90k but in bricklaying i need to wait lile 3 years
You are 18+ and as an adult you can sign contracts. £30k is a fabulous wage for a teenager! If you enjoy the job, then stick at it and you will be able to get a mortgage easily, assuming that you do not have existing debts.
What constitutes a HMO varies from Local Authority to another. Ask them or look up the website. You can only use the Rent-A-Room scheme if you live in the property too. Presumably, you have the permission of the limited company to live there? If so get the limited company to give you its blessing for you to rent a spare room!
Thanks for the upload and info Im reading that it is tax free up to £7,500 annual So £625 per month is good Just a few questions Can you rent it out on a monday-friday basis only ? Ie; study times for students and professionals? Where and how is the best way to advertise your room out so that you can SPECIFY what type of lodger you want? I mean a 22 year blonde swedish female student who flies home every friday-sunday would be IDEAL 😂 Seriously tho. I want only students and professionals. How can I specify this??? But
Great video Jamie. I'd do this but the Mrs doesn't want anyone else in the house. Time to kick her out and get me a couple of lodgers. I don't need that kind of negativity in my life 😁
As long as your total income doesnt exceed £7,5k, you can have many lodgers, subject to spare rooms being available etc, Annexes are the ones to be careful about, especially if they have their own kitchen, sleep and bathroom facilities, as these are strictly classified as a tenant arrangement and as such, subject to income tax.
Jamie, what would the cgt liabilities be on such an self contained Annexe arrangement?
Hahahaha!
🤣🤣🤣
@@superwas12No, the £7,500 pa limit is for the Rent-A-Room scheme and has zero to do with the number of lodgers you can have. The limit for lodger numbers would be determined by the number of spare bedrooms, what the mortgage company says (if you have a mortgage), whether the number would constitute a HMO under that Local Authority and issues of overcrowding.
Not many videos on this topic for the UK, thanks!
You're welcome!
Thank you, this has been really helpful. I’m 22 and saved a lot of money over lockdown and I thought it would be easy buying a house with my savings but the mortgage rate is extortionate. Having a lodger in will significantly help me with bills
Glad it was helpful
My lodger's deposit came from charity. After damages are deducted, there is £100 left. Should I return it to the charity, give it to my lodger, or keep it?
Hey if i bought a 3/4 bed house and lodged out 3 of the rooms, creating a potential income of (3x700 = 2100). Thats potentially 25.2k a year - the 7.5k that 17.7k i need to pay tax on. My question is what are my allowable expenses the online info is unclear can i expense mortgage interest, utility and repairs etc?
Thanks a lot for your very helpful video. It helped me to understand the basic information regarding lodger. I would like to ask you how it is if I have would buy a shared ownership property? Shell I tell bank that this is what I want to do, and is bank can say no, and if they will say no, can I find a solicitor to fight for justice? And how about if the housing association will say no? Can I fight it with a solicitor? Please advise. Thanks a lot !!! I appreciate it.
Thanks this video is helpful. 😊
Thanks for watching! 👍🏻
Great video as always! I do lodgers over a year now. My experience with them except 1 downside is pretty good - of course you need patients and compromise a lot, but it’s providing me a pretty insane return (£12k/annum) on my investment (£10k), however it is not as black and white, you need some special things when you have lodgers: landlord insurance and also you must have a gas safety certificate every year, if your lodgers pay by week you must provide them a payment rota too, and I highly recommend a cleaner to look after the place because your lodger won’t, also may you need an additional bin for you rubbish and may the council charge extra on it… :( otherwise is a brilliant strategy to make money easy and tax free (almost)! 😉
Great advice here!!
Great tips can I ask is it £7500 per room or just the amount - wishful thinking I think I already know answer but just need to ask?
@@Mrlistenandlearn 7.500£ is the amount you can collect a year tax free, you can collect more but the rest is taxable ;)
I'm planning on doing this. Can you quickly explain why you got landlord insurance instead of home insurance? Some home insurance providers are happy with lodgers as long as you let the m know
@@MrlistenandlearnThe Rent-A-Room scheme is £7,500pa in total, not per room or per number of lodgers.
i just signed a lodger agreement. I know the bloke will be making good money of me but am getting a furnished room /property.
Win win!
very helpful video, especially good to know is the law around it! Many thanks
Glad you enjoyed it!
Thanks that was excellent 👌🏽
Glad you enjoyed it and it helped!
Thanks again Jamie, useful as always.
You're welcome :)
Yes!!! Awesome video 💪
This is what I wish to do 🙌
You can do it!
Fantastic video as always, thanks Jamie.
Great video mate, answered a lot of of my queries.
This is very helpful thank you. Can you do this if you rent a property?
In some cases yes!
Thank you very much for your video. This is very informative. And your contents are very helpful. I have a question Jamie. I’m intending to get a lodger but i own a shared ownership. Do you think this will be allowed. I will check with my housing association as well. Thank you in advance.
Omg thank you thank you. Been waiting for this for ages
You're welcome :)
What would you do if the lodger's contract is coming to an end and they refuse to pay their last month's rent and want to use their deposit (which is equal to monthly rent) to cover the last month's rent before they move out?
Is it £7500 tax free per room or total for house if I had two rooms rented out? Thanks
Great. Thanks
Most welcome
Hi Jamie, great video! Can you rent a room to your own Ltd company?
Thank u Jamie
Thanks :)
If I was going to buy a 3 bed house, live in 1 room and rent out the other 2, would I need a buy2rent mortgage or standard 1st house mortgage
As long as you don't hit the threshold!
As you are living in the property, then a standard residential mortgage is fine, but make sure the lender allows lodgers, elsewise, go to another lender.
Hi great video, one question:
What if I rent out 2 rooms, let's say for £5000 each room which would be 10,000 income for the 2 rooms in a year would it be tax free as each room income was less than £7500 or because the overall income for the 2 rooms is over 7,500 would i need to complete a tax return?
What if the lodger causes damage
I am living in a council home that I rent from the council. I am currently receiving universal credit. My Is it still possible to opt in to the scheme?
I know of a landlord who selected his lodger based upon what music they liked. Only did 5 minute interviews over the phone. A month later the lodger got drunk and trashed the room.
That could happen with a tenant too.
"You have to obtain consent from Landlord if you rent the property". Helpful info thank you, but how likely is it ti be given??
Fairly likely in my experience, it's all about communication and explaining why you think this will help you, and therefore them
A landlord might be pleased that it reduces the chances of you being unable to pay the rent.
Expect your rent to be raised substantially at the next review.
Please I need your advice, is it possible to rent a house and sub let to make extra income.
Thank you.
Yes indeed. It’s called rent to rent
hey Jamie
was wondering if you would be able to do a video on deal packaging and how to go about it, please?
It's an avenue I'm looking to go down to raise to begin my property investment journey just not 100% sure on how to begin
Thanks, love the videos btw!
Hey Cameron, Have you check this video out: ua-cam.com/video/eK19Ji3M3-8/v-deo.html
@@JamieYork dont know how i missed that one haha. thanks!
Question is it £7500 per room or just the amount - wishful thinking I think I already know answer but just need to ask?
How about if you list your spare room an AirBnB? Does that sill clarify as having a lodger or is it a different classification?
Great question
What's the answer?
Exactly! what is the answer. Got a mortgage offer and they saw money saying rent on my bank statement Now finance adviser wants to know if l have permission from landlord. ( I'm in shared ownership). And do Airbnb on short-term stays.
How and with whom you advertise is your business. So long as you have a spare room and live there, then fine.
@@lillianjulius3734Maybe a lesson to receive the rent in cash or paid by standing order to anothere bank account!
Is the rent a room allowance ok if it is short term stays e.g AirB&B ?
So long as you live in the property, how amd with whom you advertise is your business.
Can I do it in Wales?
Guys,in your advice what sites are best to list a spare room?
is there any room size limit like 70 square feet? Can I rent free a property from my family and take in two lodgers to enjoy the tax benefits?
You'd have to check with your local council but yes in most cases
So long as you do not create statutory overcrowding, then fine. Ask your local authority.
Is this still current law
How many lodgers do u need a HMO license for? What if there are two lodgers?
you are allowed 2 lodgers
Bro
I have question I got concail home can I put a spareroom on service accommodation plz advise ?
What does your rental agreement say to that regard?
@@johnporcella2375bro thanks alot! I see you answering each and every single question even though you are about a year late… your impact has been really helpful thank you very much!!
Hi Jamie, Does same rules are apply for visa holder/ who is not permanent resident in the UK?
I do not believe that the Rent-A-Room applies only to UK residents! It is there to encourage more efficient use of housing capacity.
Not a question related to property but i am currently working a 30k(annually )job and i am 19, i wanna be a bricklayer because of the money. I got a opportunity to do bricklaying apprenticeship which will take 2 years but after 3 years i can earn 40-50k annually and i am just confused should i leave my current job and do apprenticeship or should i just continue this job and after 1 year buy my first but-to-let because in 3 years i can easily earn 90k but in bricklaying i need to wait lile 3 years
It is quite a personal decision for you. Do you want to be a Bricklayer? or Do you want to be full time in property?
@@JamieYork i wanna be full time in property but I don’t know if i will be able to get a mortgage at this age
@@JamieYork do u suggest any broker who can help me ?
In 3 years earn 90k how?
You are 18+ and as an adult you can sign contracts. £30k is a fabulous wage for a teenager! If you enjoy the job, then stick at it and you will be able to get a mortgage easily, assuming that you do not have existing debts.
What if my house is a leasehold?
Read the lease.
How many lodgers can you have before it's a HMO?
Varies from council to.council but mostly 3 unrelated people ie 2 additional lodgers
what about multiple lodger? assuming i live alone in a 3 bed and want to rent out the 2 rooms.
are there different rules?
You can take up to 2 lodgers.
@@juditvasarhelyi1129 thanks
2 is usually allowed
Depends on what your mortgage lender says. Ask them.
In some local authorities, 3 people might constitute a HMO if not related or connected.
Can u have a lodger in a property bought by limited company ?
Can u have multiple lodgers in one property or that will consider HMO?
Thank u 😊
What constitutes a HMO varies from Local Authority to another. Ask them or look up the website.
You can only use the Rent-A-Room scheme if you live in the property too. Presumably, you have the permission of the limited company to live there? If so get the limited company to give you its blessing for you to rent a spare room!
Thanks for the upload and info
Im reading that it is tax free up to £7,500 annual
So £625 per month is good
Just a few questions
Can you rent it out on a monday-friday basis only ?
Ie; study times for students and professionals?
Where and how is the best way to advertise your room out so that you can SPECIFY what type of lodger you want?
I mean a 22 year blonde swedish female student who flies home every friday-sunday would be IDEAL 😂
Seriously tho. I want only students and professionals. How can I specify this???
But
Yes, you can rent it out on whatever basis you and the lodger agree.
@@johnporcella2375 cool thanks man.
Where do I look to advertise? A safe place where I can cherry pick the TYPE of lodger ??
Haha it only it was this easy, sounds like easy money! Only a fool thinks that it’s easy money
It's not easy... but it is very simple!