AST or resident landlord?

AST or resident landlord?

17:31 PM, 18th June 2015, About 10 years ago 5

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I live in a detached house with a 1 bedroom annexe attached. I am looking to let it out. I have access to the annexe through an adjoining door which remains locked but only I have a key and access. It is not a separate address and all mail would come to the main house.  AST or resident landlord?

My question is: would this fall into the category of a residential landlord lodger agreement or an AST?

Does the deposit need to be lodged with the DPS if it is a lodger agreement?

Is there a way of writing an agreement to qualify it as a lodger agreement?

Anyone got any advice from past experience on this situation.

Thanks

Philip


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Mark Alexander - Founder of Property118

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17:34 PM, 18th June 2015, About 10 years ago

Hi Philip

If the annexe is self contained and you don't share any facilities or provide any services then it's clear to me that it's a tenancy regardless of what any agreement says.

Vacant annexes are exempt from Council Tax but as soon as they are occupied by a separate household then Council Tax becomes payable so watch out for that one too.

As a matter of interest, how will you deal with utility bills?
.

philip nash

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19:43 PM, 18th June 2015, About 10 years ago

The facilities are not shared but I can write the contract to share the lounge but in reality that would not happen. I would include water, council tax and tv licence in the rent but can charge the gas/electricity as its on a separate metered sipply.

Mark Alexander - Founder of Property118

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23:10 PM, 18th June 2015, About 10 years ago

Reply to the comment left by "philip nash" at "18/06/2015 - 19:43":

Sounds like a contrivance to me, very risky but your choice.

If you need to evict though I suspect the Courts would side with the tenant and if you are doing this to evade tax by abusing the Rent A Room scheme then you are risking a prison sentence too.
.

Michael Barnes

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10:07 AM, 19th June 2015, About 10 years ago

I believe that a separate TV licence would be required regardless of lodger or tenant status.

Mandy Thomson

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16:31 PM, 19th June 2015, About 10 years ago

Hi Philip

If the occupier of your annexe would be obliged to access their dwelling through yours, they would be a kind of hybrid between being a licensee (which is what lodgers who rent spare rooms and share facilities with their landlord normally are) and being a full tenant. Their legal status would be that of excluded tenant. As the name implies, an excluded tenant doesn't have the protection from eviction that a full tenant does, but unlike with a lodger who is a licensee, you would have to get a court order for possession of your property if they refused to move out. However, it's my understanding that this is much easier to obtain than a court order for possession under an AST (i.e. the most common type of tenancy). The notice required is also shorter - one month as opposed to two.

However, you can't use the rent a room tax exemption, as you must share facilities such as kitchen and bathroom to qualify.

Michael Barnes is also correct in saying they would need their own TV licence - this applies even with lodgers who rent spare rooms.

Finally, I concur with what everyone else has said above - it's the SITUATION that determines what sort of letting arrangement you have, and not simply the form of contract you use.

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