Lodgers can be a useful source of income for both existing homeowners and those trying to get on to the property ladder.
I haven't told my husband this yet but I've been thinking that we should get a lodger again.
Having recently completed a load of home improvements I've developed a taste for it and I want to do some more. Besides, although we've now got a house that looks good in most places, it does mean that the few remaining tatty bits are more obvious. My problem is that I don't want to run up more bills.
A lodger for two months would pay for replacement carpets in two rooms. Another four months' rent would cover the costs of putting a loo under the stairs, a project we had to abandon in the last round of improvements because of escalating costs. And a further two months would pay for new curtains to be made for our two huge bay windows.
Under the Government's Rent-a-Room scheme, you're allowed to earn up to £4,250 a year tax-free from lodgers a very useful source of income if you've got the room to spare. And it's not that bad sharing your home with someone after a week or so, they're not strangers any more and if you chose carefully, you could end up with a good friend.
First-time buyers who are struggling to get a mortgage can make use of lodgers too. For example, Mortgage Express offers a special loan that takes into account income from a lodger. They'll add the permitted £4,250 a year on to your salary to allow you to raise a bigger mortgage.
You have to put up with having a lodger around the house, of course, but if it helps you to get what you want, then it may be a sacrifice worth making. Now all I need to do is sell the idea to my husband.
Find our more about Mortgages and Financing Home Improvements.
