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I understand what you are suggesting.
However do you seriously believe that 300000 Accidental LL who are already breaching lender and insurance conditions are going to declare the letting status of their PPR!!!?
Will NEVER happen!!!
There are millions of illegal tenancies in the PRS
LL letting to HB tenants in breach of their BTL mortgage conditions
LL with a lodger or too many lodgers for their resi mortgage
LL letting as HMO without their lender knowing
Overnight the council can with licensing requirements turn your joint tenancy property into a HMO
Ask Southwark LL how they are coping?
Possibly gaming the system!
LL letting rooms not meeting the minimum space requirements
If LL didn't game the system there would be millions of homeless
You are right about the odds but as each year goes by more information is captured and shared with the revenue. I would rather pay the tax due and not take the chance.
Day I see an Accidental LL done for CGT of their PPR because they let it out is the day I'll agree with you.
I know it will never happen!
The LL redress scheme however could kill off the accidental LL!
Those are just breaches of contract - not illegal.
Well yes contractual breaches which surely no LL redress scheme would allow! ?
A tenant occupying a property when not allowed by a lender even a HB tenant!
A tenant not insured because of the wrong type of insurance
Can't see any redress scheme accepting that.
Which is why I suggest that a thorough LL redress scheme will remove most if not all Accidental LL from the PRS.
That would be very bad news for tenants and those A LL who would be forced to officially return to live in their PPR.
Which is why there will be an upsurge in 'lodgers' and 'live -in LL' self managing!
Most tenants would have no concerns about being converted to lodgers EXCEPT if they are are in receipt of any HB.
Lodger rates are substantially less
So more homeless HB tenants and much more very expensive TA
Just imagine about 1 million resi properties currently being let out in breach of resi mortgage conditions stopping taking tenants.
The LL though taking in lodgers or a lodger
Govt wouldn't know where more than 1 lodger was if a lender had a lodger restriction.
There are so many ways to game the system.
The result of which there will lots of lodgers all paying no more than £7500
So a massive loss of tax revenue and lost business for LA
Also no S24 which I believe is payable if CTL has been obtained
Thank you for your replies.
I property is rented to a friend and I still live there sometimes, weekends etc. The council tax is under my name but the bills are under his name. However I'm not on the electral register. Its like my second home. When I bought the house I did some renovation work and I made sure the builder gave me receipts, he owes me few more but can't get hold of him ; I think he has gone back home to Poland.
I tried taking money out but mortgage is fixed, so extra money would be like a second mortgage on another rate. As it's residential mortgage it becomes too much every month.
You would appear to be gaming the system!
Just don't get caught.
Possibly consider how better you could make your resi property your actual plausible home.
It is easy to do but you must do it or face potential massive tax bills.
You CANNOT have a tenant at your resi property if you have not obtained CTL.
Lodgers would only be allowed if the lender gives permission.
You should attempt to plausibly make your resi mortgaged property your actual home
A home owner would have all bills in their name.
They would be registered at the local doctor and dentist.
Vehicles would be registered at the address
All correspondence would be sent to your resi address.
If you are going to continue to game the system then you need to do it properly so it is plausible as far as HMRC are concerned.
But you need to do it now.
You need to ensure that the tenants are now given lodger agreements
You need to unprotect any deposit and retain the monies yourself with no protection required.
You need a surrender letter from your tenant
You are a classic example of someone who is not gaming the system properly
Which is how people like you get caught out. .You need to up your game if you are to game the system properly
This video may shed some light:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**