The house or mortgage is in 50:50 share between my friend and I. We both agree to lodge the empty rooms out so that it helps repaying the mortgage as well as other expenses. We don't have a written agreement stating we must lodge the empty room out. Our question are:Is it legally OK to lodge 3 empty rooms out? If not, what actions need to be taking?
Yes you can lodge with 3 people.
There is nothing you need to do as you are only renting out rooms.
For more information please see:
If you earn over £4250 then you would have to pay tax on it
Can I clarify anything for you about this today please?
By renting out room by room basis as such, does it mean my house become HMO? If yes, is there anything we must do?
Also, what if I also move out in the future?
If they are 3 separate people not sharing then it will be a HMO
I had assumed that they would have shared.
But to be clear if they have 1 bedroom each it will be a HMO even if you live there
If you have 3 rooms and they are each let it will be a HMO and you will need a licence.
This is legally acceptable but you still need a licence from the local Council
Each lodger occupier a bedroom and we share other areas in the house such as kitchen, bathroom, etc. Is this classified as HMO? My house type is a 2 story 4 bedroom link-detached. Do I need a HMO licence from the local council? What are the consequences if I don't have a HMO licence (or do nothing)? Finally, how do I avoid HMO (e.g., maximum 2 lodgers only)?
So if 2 unrelated lodgers stay with me. Each of them occupier a bedroom. I can do nothing and is totally legal.
Otherwise, I need to get a HMO licence from the local council.
BTW, what is HPI and what is the max. penalty on the prosecute to me?
What do I need to do to get a HMO licence? Do my mortgage lender allow that?
1. We checked on the Cambridge local council website (https://www.gov.uk/house-in-multiple-occupation-licence/south-cambridgeshire/apply), it states 5 tenants instead of 3 tenants as:
You must have a licence for your HMO if it’s:
- rented to 5 or more people who form more than 1 household
- at least 3 storeys high
We don’t meet these requirements. Please clarify.
2. If the bank notice we are letting 3 rooms out without HMO, what are they going to do? who is going to prosecute us, is it the bank, or the council?
3. If we reduce one tenant now, do you think the council will prosecute us?
4. How do we register HMO with the council? Our house is a 4 years old house, do you think we will have great difficulty to apply HMO?
5. How about two unrelated couples to share our house, do we need HMO? Or perhaps one couple and one single tenant, do we need HMO?
Each Council has their own requirements.
1. If that is the case you don't need a HMO
2. I don't think it makes a difference if you have LESS than 5 people there
3. No I do not
4. You need to apply for a licence.
Can I clarify anything for you?
So after all, my current situation (3 separate lodgers living with me in a 2 storeys 4 bedrooms linked detach house) is totally legal and I don't need to do anything. Right?
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How about if I move out?
Can I still rent the house to the 3 existing tenants plus 1 new tenant who take my room?
What do I need to do differently or additionally?
OK. Thank you for your helps.