Tenant wanting to sub-let

I would use this situation as a fresh start in the following manner,

1). start a new AST in both names ,subject to Refs.

2). use the monies saved in agents fees to install a low maintance garden.

3). increase the rent to the market value.

This is the way I would go about it.

Reply to the comment left by “PHILIP PERSEVAL” at “12/08/2014 – 12:24“:

I don’t see how having one extra person living there (whether a lodger or joint tenant or excluded tenant) would subject the property to HMO regulations.

“Properties which are shared by two individuals are exempt from the HMO definition as are those with a resident landlord with no more than two lodgers.” Source: National Landlords Association.

To be liable for additional HMO licensing (if the local authority runs a scheme) there would have to be at least 3 unrelated households (household being an individual, couple or family) sharing, in addition to the live in landlord.

Reply to the comment left by “Mandy Thomson” at “12/08/2014 – 13:33“:

Hi; depends upon various factors: number of flats owner occupied/shared basic facilities in house/conversion date or purpose built etc.

Simply google HMO for gov rules which are basically unclear. Safest to sell and ensure £20k fine is avoided . . . good luck with council bureaucrats who may not apply HMO rules correctly . .

Hi everyone

Many thanks for all your comments and help on this. I’m meeting my sister tomorrow – my co-owner of the flat – and we’ll go through all of these comments and see how we want to take it forward. I’ll re-post once we get to a decision – may take us a few days! I’m really grateful for all your thoughts on this

Lesley

Reply to the comment left by “Lesley Hart” at “12/08/2014 – 18:31“:

Good luck, Lesley.

Most people are decent, so it’s unlikely there would be any real trouble with a lodger, but there are a small number around (as the poor chap last week who had a couple of ex friends commandeer his house found out) who are selfish and irresponsible enough to take advantage of someone who gives them a roof over their head.

However, both you and your tenant sound like the kind of people who will carry out your due diligence, so I’m sure whatever you decide it will work out.

Reply to the comment left by “Mandy Thomson” at “12/08/2014 – 19:07“:

Many thanks, Mandy, I’ve appreciated your posts

Lesley

HMO doesn’t apply to this.

Reply to the comment left by “Harlequin Garden” at “19/08/2014 – 09:14“:

Hi; good luck here but still recommend selling with 100% mortgage over 7 years with fixed 8% interest rate.

Impossible to ascertain HMO status upon information supplied and yes, one more separate household could create an HMO status or at least an argument with the local council officials.

Reply to the comment left by “PHILIP PERSEVAL” at “19/08/2014 – 13:30“:

Hi Philip

I believe Lesley’s tenant is just talking about one lodger (either one person or a couple sharing a room under a joint licence or tenancy agreement) as she uses the terms “subtenant” and “lodger” in the singular.

I can see how it might be possible for a rank and file council official to misunderstand the HMO rules, but I would expect the matter to be quickly resolved on appeal to someone more senior – however, while I know there’s some confusion over additional licensing for small HMOs (where there’s more than 2 lodgers – again, I also mean a couple sharing a room), I’m not personally aware of anyone falling foul of HMO rules with just one lodger – can you cite an example of where this has happened?

Hi; yes – happened to me whereby 3 separate flats sold upon 999 year leases had 2 sub-let to single households by long leaseholders.

No shared facilities BUT old pre 1991 x 3 storey conversion. 1 flat now empty so temporary council HMO postponement pending relet.