Is it a lodger or a tenant for annex?Make Text Bigger
I am a Landlord with several properties but I must confess, the question below has me a little confused as it is an area that I have no experience with, so hopefully P118 members can provide some useful feedback.
I am thinking of buying a large Victorian house that has two front doors. The property lends itself to easily convert part of the house into a 1 bedroom self contained annex (kitchen, bathroom, bedroom. lounge/diner). The self contained unit can be separated from the part of the house that I will occupy by an internal lockable door or I could have the doorway boarded up if needed. I don’t really want to create an AST but instead let the annex under a ‘lodger’ basis.
I have been reading conflicting information on-line as to whether I can do this or not, for example, I understand that if I provide a service where I can have my cleaner walk into the ‘annex’ to clean say once per week and do not need the lodgers permission to enter then the person would be classed as a lodger, On the other hand, as no parts of the combined house would be shared the person would be classed as a tenant and not a lodger.
A lodger would be easier as I would not have to have the unit registered for separate council tax (I think) and I can let the room(s) for £4200 per annum tax free under the rent a room scheme.
I know there are other issues to consider, for example; do I need planning consent, what sort of agreement does a lodge have? etc.
Any useful pointers or comments would help me improve my overall understanding of this situation.
Thanks in advance.
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