AST or resident landlord?

by Readers Question

17:31 PM, 18th June 2015
About 3 years ago

AST or resident landlord?

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AST or resident landlord?

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



Comments

Mark Alexander

17:34 PM, 18th June 2015
About 3 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

19:43 PM, 18th June 2015
About 3 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

23:10 PM, 18th June 2015
About 3 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

10:07 AM, 19th June 2015
About 3 years ago

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

Mandy Thomson

16:31 PM, 19th June 2015
About 3 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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