Buying our first house together - Third person as a lodger? Thoughts appreciated!

Bromhead · 8 Jan 2013 at 01:39

BennyC said:
Bromhead - if you want me to fire you over the house rules & agreement I drew up for my lodgers let me know. E-mail in trust.

Regardless of how good a friend they are set some ground rules for cleanliness, noise, parking, pet peeves etc. Take a deposit too.

More likely than not whatever you draw up won't hold up in a court however chances are the other party doesn't know that and isn't prepared to shell out to find out if it does!

It's all just a precaution really but you'll kick yourself if you didn't do it if something kicks off.

Thank you Benny that would be great, I'll e-mail you in trust now

[FnG]magnolia · 8 Jan 2013 at 07:56

The only non-family member living in our house will be an au pair next year when little one goes to school. I wouldn't rent out one of our rooms to anyone else.

The Funktopus · 8 Jan 2013 at 08:18

Through necessity I share a flat whilst at college, and to be frank, I'd never share accommodation with anyone other than a girlfriend again. My flatmate and I were good friends during our 1st college phase when we were living in the halls. However, friction and arguments between us caused by his living habits have ruined our friendship, and we'll probably forget we know each other when this is all over in March. It's a shame really, we got on like a house on fire in the 1st year when we didn't live together, however, his slovenliness. greed and the confrontations and arguments it caused have wrecked that.

Think very carefully about bringing in a friend as a lodger.

Wink · 11 Jan 2013 at 17:04

If you can afford it yourselves, I really don't know why you would want to live with someone else..

If you can't afford it, don't buy a 3-4 bed semi or detached house. Maybe get something more affordable?

Definitely not something I would be considering unless I really, really had to.

D.P. · 11 Jan 2013 at 17:08

krooton said:
Would the money from the lodger also need to be factored in to your income tax?

yes

a1ex2001 · 11 Jan 2013 at 17:20

D.P. said:
yes

Not necessarily there is a limit where it's tax free and it's quite generous, can't remember of the top of my head!

Check caefully before telling the mortgage company most are only interested in knowing if you rent the whole property out but will happily charge you for almost anything they can get away with!

djxput · 11 Jan 2013 at 17:22

Steeps said:
2. £300 depending on the size of the room/shared areas is quite fair, very good with it including all bills.
.

you obviously dont live in london ... extortion is what it is here ...
I lived in shared housing around london and paid from 325-750 ...

Bromhead · 13 Jan 2013 at 20:03

Now whilst we're on the subject and this may seem a silly question but I haven't checked or asked my Bank this yet.

If the house costs for example, 130k, given that our mortgage promise is a higher amount than this, could we borrow 140k. 130k for the house and then 10k left over for kitting it out doing jobs etc. (I understand there will be additional fees on top of the 130k but our budget already covers those). Or is it a case of, the house cost you 130k, here is 130k and not a penny more.

Anyone in the know that can help answer this question?

Pug · 13 Jan 2013 at 20:46

Banks will lend on the value of the house only, no more.

BennyC · 13 Jan 2013 at 21:33

Bromhead said:
Now whilst we're on the subject and this may seem a silly question but I haven't checked or asked my Bank this yet.

If the house costs for example, 130k, given that our mortgage promise is a higher amount than this, could we borrow 140k. 130k for the house and then 10k left over for kitting it out doing jobs etc. (I understand there will be additional fees on top of the 130k but our budget already covers those). Or is it a case of, the house cost you 130k, here is 130k and not a penny more.

Anyone in the know that can help answer this question?

Yes but you can't just outright ask for more for DIY/Furnishings etc.

I was in a fortunate position to have a big enough deposit to be able to borrow an additional 10/15% without it having an effect on the rate or deal that was available to me.

I did this by simply reducing the size of the deposit I wished to use. Easier said than done if you have struggled to get a deposit together though. It's a cheaper way to finance some luxuries or improvements. Though I plan to overpay/clear my mortgage well in advance of my initial 'deal' term ending so the added cost in interest etc isn't a factor for me. You could work out the math in the additional cost in interest over the term of your mortgage (assuming you don't wish to overpay) and compare it to that of a bank loan but I imagine it would be cheaper to do the former.