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  • HMO & Multi-Lets

    Multi-Letting - Do I have to live in?

    Hi all,

    I recently posted an introduction post and just giving people a bit of info about me. Was curious about BTL but people have advised to look into having lodgers first. I still live at home so would this property have to be my main home or could I get a three bedroom flat/house and rent it out to three unrelated people.

    Anyone have any experience with this? I don't really know where to start. Can anyone please give me advice?

    Salary: 23,650

    Deposit: Around 12,000

    Can I only get a property that is x5 my annual salary?

    Any help would be much appreciated!

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    I did answer that enquiry on the other thread.

    I am only suggesting lodgers because I think that getting the stability of your own residential address is important for a number of reasons, including your own security and the fact that you will find it easier to raise money via BTL finance if you are a home owner.

    Secondly, you can earn additional income - up to £7,500 tax free - while learning about tenant management.

    This additional income can be put towards a deposit on a BTL property, so it makes all round good sense for you to take this route into property.

    If you bought a property on a residential mortgage, it would be against the T & C's to let it out in any format, unless you got "consent to let" from the lender.

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    I can't help on the finance side, maybe you'll get a better response if you post the question in the mortgages tribe.

    As for multi lets, I covered some of the questions a while ago in this thread

    https://www.propertytribes.com/hmo-what-...34010.html

    And a few bits regarding lodgers here

    https://www.propertytribes.com/lodgers-s...30213.html

    This one highlights how silly it can get

    https://www.propertytribes.com/new-game-...32962.html

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    I am pleased the Paul Barrettt reply advocating tax fraud on HMRC was deleted - shame on you.

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    I don't advocate tax fraud on the RAR Allowance.

    I don't advocate beds in sheds.

    I don't advocate accidental LL letting without CTL or having the correct insurance which is impossible without CTL

    I don't advocate LL letting to DSS tenants in breach of resi and BTL mortgage conditions

    I don't advocate LL not advising insurers they have illegal DSS tenants

    I don't advocate not declaring lodger rents in excess of the current tax free allowance

    I don't advocate  LL breaching the new HMO room size regulations

    Hundreds of thousands of supposedly honest LL are engaged daily in fraud, deception and tax evasion.

    A few lodger LL not declaring any amount above the RAR A allowance is minuscule compared to the mass LL fraud that currently occurs.

    We are talking about PT LL.

    I don't engage in any of the above.

    Given the relevant circumstances I reckon I would.

    So let's get this straight lodger income is not a high priority for HMRC!!

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