DIY Probate: What to do if there isn’t a Will

When someone dies without leaving a valid Will, they are said to have died ‘intestate’. Their estate is then distributed in accordance with the rules of intestacy.

These rules determine who is entitled to inherit the deceased’s estate, including their property, personal possessions and money. They also establish who has priority to apply to administer the estate.

Who can deal with the deceased person’s affairs?

Many people assume that the deceased’s next of kin will automatically be responsible for administering their estate. However, this is not necessarily the case.

When someone dies without a Will, the law determines who has the right to apply to administer the estate.

In England and Wales, the person appointed to administer the estate is called an ‘administrator’.

The person who administers the estate is responsible for identifying and collecting the deceased’s assets, paying outstanding debts and taxes, and distributing the remaining estate to the people entitled to inherit.

How are administrators appointed in England and Wales?

When someone dies without a valid Will, the Non-Contentious Probate Rules 1987 establish the order of priority for applying for a grant of letters of administration.

The general order of priority is:

  1. The deceased’s surviving spouse or civil partner.
  2. The deceased’s children and the descendants of any child who died before the deceased.
  3. The deceased’s parents.
  4. The deceased’s brothers and sisters of the whole blood, and the descendants of any who died before the deceased.
  5. The deceased’s brothers and sisters of the half blood, and the descendants of any who died before the deceased.
  6. The deceased’s grandparents.
  7. The deceased’s uncles and aunts of the whole blood, and the descendants of any who died before the deceased.
  8. The deceased’s uncles and aunts of the half blood, and the descendants of any who died before the deceased.

There are additional rules governing who can apply, particularly where several people have the same level of entitlement or where someone entitled to apply is unable or unwilling to do so.

A surviving unmarried partner does not automatically have the same right to apply as a spouse or civil partner.

The rules governing entitlement to administer the estate are separate from the rules determining who inherits.

How to obtain a grant of representation when there is no Will

When someone dies without a Will, the person entitled to administer the estate will generally need to obtain a formal legal document before they can deal with certain assets.

In England and Wales, this is called a ‘grant of letters of administration’.

The grant or confirmation provides formal evidence of the administrator’s or executor’s authority to collect and deal with assets held by banks, building societies and other organisations.

Whether a grant or confirmation is required depends on the nature and value of the deceased’s assets and the requirements of the organisations holding them.

Applying for letters of administration in England and Wales

Applications can be made through the Probate Registry of HM Courts and Tribunals Service.

Before applying, you will generally need to:

  • Establish who is entitled to apply.
  • Identify and value the deceased’s assets and debts.
  • Establish whether Inheritance Tax is payable.
  • Complete the appropriate probate application.
  • Provide the necessary supporting documents and pay the application fee, where applicable.

You can apply for letters of administration in several ways:

Do probate yourself: Lawpack’s DIY Probate Kit provides practical guidance and assistance with the forms and procedures involved in administering an estate.

Use a probate company: You can instruct a specialist probate service to assist with the application and estate administration.

Use a solicitor: A solicitor can advise on the legal requirements and undertake some or all of the administration on your behalf.

Paying Inheritance Tax

If Inheritance Tax is due on the deceased’s estate, some or all of the tax will normally need to be paid before the grant of letters of administration or confirmation can be issued.

However, payment arrangements may be available, including the possibility of paying certain amounts directly from the deceased’s bank accounts.

The personal representatives should establish the estate’s Inheritance Tax position before submitting the application.

The types of grant of probate

What is a grant of representation?

When someone dies, their personal representatives are responsible for administering their estate.

An executor appointed under a valid Will generally derives their authority from the date of death. However, they will often need to obtain a legal document known as a grant of representation to prove their authority to banks, financial institutions and other organisations holding assets in the deceased’s name.

Where there is no Will, or no executor able or willing to act, an administrator will generally need to obtain a grant of letters of administration before they can formally administer the estate.

In England and Wales, the relevant grant is known as a grant of representation. In Scotland, the equivalent legal document is called confirmation.

Whether a grant is required depends on the nature and value of the deceased’s assets and the requirements of the organisations holding them. Some banks and financial institutions will release smaller amounts without requiring a grant, while others will insist on seeing the relevant legal document.

Find out if you need a grant of probate to administer an estate.

The different grants in England and Wales

There are three main types of grant of representation in England and Wales.

1. Grant of probate

A grant of probate is issued where the deceased left a valid Will appointing one or more executors who are able and willing to act.

The grant provides formal evidence of the executors’ authority to administer the estate.

Executors: what to do if there is a Will

2. Grant of letters of administration with Will annexed

If the deceased left a valid Will but did not appoint executors, or the appointed executors are unable or unwilling to act, a grant of letters of administration with Will annexed may be issued.

The person appointed to administer the estate is known as an administrator with Will annexed.

3. Grant of letters of administration

If the deceased died intestate (meaning they left no valid Will), a grant of letters of administration may be issued.

The person appointed to administer the estate is known as an administrator. They are generally appointed according to the statutory order of entitlement.

What to do if there isn’t a Will

Confirmation in Scotland

In Scotland, the equivalent of a grant of representation is known as confirmation.

Confirmation is issued by the Sheriff Court and provides the executor with formal authority to collect, administer and distribute the deceased’s estate.

The executor may be appointed under a Will (an executor nominate) or appointed by the court where there is no Will or no executor able to act (an executor dative).

Although confirmation is the general term for the legal document, the application requirements depend on the circumstances of the estate.

The probate and confirmation forms

The forms required depend on where the deceased lived, whether they left a Will and whether the estate qualifies as an excepted estate for Inheritance Tax purposes.

England and Wales

The main application forms are:

  • PA1P – Apply for probate where there is a Will: Used when applying for a grant of probate as an executor or, in certain circumstances, by a beneficiary.
  • PA1A – Apply for letters of administration where there is no Will: Used when applying for a grant of letters of administration.

Applications can also be made online through the GOV.UK probate service.

For Inheritance Tax purposes:

  • Excepted estates: Where the estate qualifies as an excepted estate, the relevant Inheritance Tax information is generally provided through the probate application. A separate full Inheritance Tax account is not normally required.
  • IHT400 – Full Inheritance Tax account: Required where the estate does not qualify as an excepted estate and a full account must be submitted to HMRC.

Form IHT205 was previously used to report certain excepted estates, but it is no longer used for deaths on or after 1 January 2022.

Scotland

The main application form is:

  • C1 – Confirmation: Used to provide the inventory of the deceased’s estate and apply for confirmation.

The Inheritance Tax reporting requirements depend on whether the estate qualifies as an excepted estate.

For certain estates, the C1 form and associated declarations provide the necessary information. Where a full Inheritance Tax account is required, Form IHT400 must also be submitted.

The older C5 form relates to previous Scottish estate reporting arrangements and should not be assumed to apply to all current applications.

Full Inheritance Tax account

Form IHT400 is used where the estate does not qualify as an excepted estate and a full Inheritance Tax account is required.

An estate may need to submit Form IHT400 even if no Inheritance Tax is ultimately payable.

The forms and reporting requirements depend on the date of death, the value and composition of the estate and the applicable Inheritance Tax rules.

Get the probate forms and expert guidance you need

Applying for probate or confirmation involves completing the correct legal forms and providing accurate information about the deceased’s estate.

Lawpack’s DIY Probate Kit provides practical guidance and assistance with the paperwork involved in applying for probate and administering an estate.

Who issues grants of representation?

In England and Wales, grants of representation are issued by the Probate Registry of the High Court, which forms part of HM Courts and Tribunals Service.

In Scotland, confirmation is issued by the Sheriff Court in the sheriffdom where the deceased was domiciled at death. In certain circumstances, applications are dealt with by the Commissary Office in Edinburgh.

How to value the debts of an estate for probate

When someone dies, one of the important responsibilities of the personal representatives is to identify the assets and debts of the deceased.

An executor is appointed under a Will, while an administrator is appointed by the court where there is no Will or no executor able to act.

It is important to establish the value of the deceased’s assets and outstanding liabilities at the date of death. This information will be needed when completing the probate or confirmation application and calculating whether Inheritance Tax is payable.

Checklist of debts that may be owed by the deceased

To help you identify the liabilities of the estate, here is a checklist of some common debts and outstanding payments:

  • Water bills and water rates.
  • Telephone and mobile phone bills.
  • Television and subscription service bills.
  • Electricity bills.
  • Gas bills.
  • Personal loans and overdrafts.
  • Credit card balances.
  • Mail-order and catalogue debts.
  • Rent arrears.
  • Hire purchase agreements.
  • Debts owed to other individuals.
  • Outstanding Council Tax.
  • Income Tax owed up to the date of death.
  • Capital Gains Tax liabilities arising before death.
  • Outstanding mortgage payments and other secured borrowing.

You should also check for unpaid insurance premiums, care home fees and other outstanding financial commitments.

Remember that some bills may relate to services provided after the death. These should be identified separately as expenses of administering the estate rather than automatically treated as debts existing at the date of death.

Funeral expenses

Reasonable funeral expenses are generally payable from the estate and can normally be deducted when calculating the estate’s value for Inheritance Tax purposes.

These may include:

  • Funeral director’s fees.
  • Burial or cremation costs.
  • Flowers and other reasonable funeral arrangements.
  • An appropriate gravestone or memorial.

The expenses must be reasonable and appropriate in the circumstances.

Help with funeral expenses

If the person arranging the funeral receives certain qualifying benefits, they may be eligible for help through the government’s Funeral Expenses Payment scheme in England and Wales.

Eligibility depends on the benefits received, the relationship with the deceased and other conditions.

In Scotland, the equivalent scheme is called Funeral Support Payment.

A Funeral Expenses Payment may have to be repaid from the deceased’s estate if sufficient funds subsequently become available.

For further information, visit www.gov.uk/funeral-payments or, in Scotland, www.mygov.scot/funeral-support-payment.

What happens next?

Once you have identified the assets and debts of the estate, review the information carefully.

You should establish:

  • The total value of the deceased’s assets.
  • The total outstanding liabilities at the date of death.
  • Whether the estate is solvent or insolvent.
  • Whether an application for a grant of probate or confirmation is required.
  • Whether an Inheritance Tax return needs to be submitted.

Remember that not every liability is necessarily deductible for Inheritance Tax purposes. HMRC has specific rules governing which debts and expenses can be deducted.

Paying Inheritance Tax

If Inheritance Tax is payable, some or all of the tax will normally need to be paid before the grant of probate or confirmation can be obtained.

However, personal representatives may be able to use the deceased’s bank accounts or investments to pay the tax directly to HMRC through the Direct Payment Scheme.

In certain circumstances, they may also apply to postpone payment until after the grant has been obtained.

What if the estate is insolvent?

If the estate’s debts exceed the value of its assets, it is known as an insolvent estate.

In these circumstances, personal representatives must take particular care before making payments or distributing assets to beneficiaries.

There are legal rules governing the order in which creditors must be paid, and these differ between England and Wales and Scotland.

If the estate appears to be insolvent or there are other complications, professional legal advice should be obtained before taking further action.

Paying the deceased’s debts

The deceased’s outstanding debts generally need to be paid from the estate rather than from the personal savings or income of the executor or administrator.

If there are insufficient funds immediately available, personal representatives can contact creditors to explain the circumstances and discuss possible payment arrangements.

However, creditors are not obliged to agree to postpone payment.

Executors should also take care not to distribute the estate to beneficiaries before properly establishing and dealing with outstanding debts and liabilities. They may be personally liable if they breach their duties by distributing assets incorrectly.

Expert probate advice

For further information and practical guidance on identifying and valuing the assets and debts of an estate, read Lawpack’s DIY Probate Kit.

The kit provides guidance and assistance with the probate process, including the paperwork involved in administering an estate.

DIY Probate: Is inheritance tax due on the estate?

Estates exempt from Inheritance Tax

When applying for probate, one of the first things executors need to establish is which Inheritance Tax reporting requirements apply to the estate.

It is important to understand that not every estate requires a separate Inheritance Tax account. Depending on the value and circumstances of the estate, it may qualify as an ‘excepted estate’, meaning that a full Inheritance Tax account (Form IHT400) is not required.

To assist with the probate or confirmation application and the appropriate reporting to HMRC, the personal representatives must establish whether the estate qualifies as an excepted estate or whether a full Inheritance Tax account needs to be submitted.

This will determine which forms and declarations need to be completed when applying for a grant of probate in England and Wales or confirmation in Scotland.

What is an excepted estate?

An excepted estate is an estate that meets certain conditions set by HMRC and does not normally require a full Inheritance Tax account.

For deaths on or after 1 January 2022, HMRC recognises different categories of excepted estate, including low-value estates and exempt estates.

The rules depend on the value of the estate, the deceased’s lifetime gifts, any assets held in trust, overseas assets and other circumstances.

It is important to consider more than just the assets owned by the deceased when they died. Certain lifetime gifts, jointly owned assets and trust interests may also need to be taken into account when deciding whether an estate qualifies.

Low-value excepted estates

An estate may qualify as a low-value excepted estate where:

  • The deceased was a long-term UK resident immediately before death, for deaths on or after 6 April 2025. Different domicile rules apply to earlier deaths.
  • The gross value of the estate, including the deceased’s share of jointly owned assets and relevant lifetime transfers, does not exceed the available Inheritance Tax nil-rate band.
  • If the estate includes assets held in trust, they are held in a single trust and their gross value does not exceed £250,000.
  • If the estate includes foreign assets, their total gross value does not exceed £100,000.
  • The chargeable value of any specified transfers does not exceed £250,000.
  • The deceased had not made a gift with reservation of benefit.

Other detailed conditions also apply.

Exempt and excepted estates

An estate may qualify as an exempt and excepted estate where:

  • The deceased meets the relevant UK residence or domicile conditions, depending on the date of death.
  • The gross value of the estate, including relevant jointly owned assets and specified lifetime transfers, does not exceed £3 million for deaths on or after 1 January 2022.
  • After deducting allowable liabilities and permitted spouse or civil partner and/or charity exemptions, the net chargeable value does not exceed the available Inheritance Tax nil-rate band.
  • Any assets held in trust meet the applicable trust conditions. Generally, there must be only one relevant trust, with a gross value not exceeding £1 million and a net chargeable value, after permitted exemptions, not exceeding £250,000.
  • Foreign assets do not exceed £100,000 in gross value.
  • The chargeable value of specified transfers does not exceed £250,000.
  • The deceased had not made a gift with reservation of benefit.

Only certain exemptions can be taken into account when establishing whether an estate qualifies. In particular, spouse or civil partner and charity exemptions must meet HMRC’s specific requirements.

For deaths on or after 6 April 2025, the long-term UK residence rules are particularly important. The availability of spouse or civil partner exemption for these purposes depends on the residence status of both individuals.

What are specified transfers?

Specified transfers are certain gifts made by the deceased during their lifetime which can be included when determining whether an estate qualifies as an excepted estate.

They can include transfers involving:

  • Cash.
  • Quoted stocks and shares.
  • Household and personal goods.
  • Land and buildings.

There are specific conditions governing which gifts qualify.

For example, gifts of land and buildings generally need to be outright gifts between individuals to qualify. Gifts to trusts or companies, or gifts where the deceased retained a benefit in the property, may not qualify.

For deaths on or after 1 January 2022, the chargeable value of specified transfers must not exceed £250,000.

If the deceased made significant gifts during their lifetime, it is important to establish whether these qualify as specified transfers or whether they mean that a full Inheritance Tax account is required.

When is a full Inheritance Tax account required?

If the estate does not meet the conditions for an excepted estate, the personal representatives will generally need to complete Form IHT400 and provide HMRC with full details of the estate.

This includes information about:

  • The deceased’s assets and liabilities.
  • Lifetime gifts and other transfers of value.
  • Jointly owned assets.
  • Property and investments.
  • Assets held in trust.
  • Overseas assets.
  • Applicable exemptions and reliefs.

An estate may require a full Inheritance Tax account even where the amount of Inheritance Tax ultimately payable is nil.

For example, the estate may not qualify as an excepted estate because of the nature of the deceased’s lifetime gifts, trust arrangements or other circumstances.

What happens next?

Once the personal representatives have established whether the estate qualifies as an excepted estate, they can determine which probate or confirmation application forms and Inheritance Tax reporting requirements apply.

In England and Wales, qualifying excepted estates can generally be dealt with through the relevant declarations in the probate application without submitting a separate Form IHT400.

Where a full Inheritance Tax account is required, Form IHT400 must normally be submitted to HMRC before the probate application can proceed.

In Scotland, separate confirmation procedures and Inheritance Tax forms apply, including the relevant C1 and C5 forms where appropriate.

If you are unsure whether an estate qualifies as an excepted estate, or whether particular lifetime gifts or trust arrangements need to be reported, you should seek advice from HMRC or a suitably qualified probate or tax professional.

Expert guidance on applying for probate

Working out whether an estate qualifies as an excepted estate can be complicated, particularly where the deceased made substantial gifts during their lifetime, owned assets jointly or had interests in trusts or overseas property.

Lawpack’s DIY Probate Kit provides guidance and practical assistance to help you understand the probate application process and the paperwork involved.

It is important to check that you are using the correct forms and guidance for the date of death and the relevant jurisdiction.

Other useful information

  • Completing Form IHT400 when Inheritance Tax is due
  • What is probate?
  • Do I need a grant of probate?
  • Is Inheritance Tax due on the estate?

Can I do probate myself?

When someone dies and you are faced with administering their estate, one of the first decisions to consider is whether to appoint a professional to help or deal with the administration yourself.

Whether you undertake the tasks involved in administering the estate or instruct professional advisers is generally a matter of choice, depending on the complexity of the estate, your experience and the time you have available.

Reasonable professional fees and expenses properly incurred in administering an estate can generally be paid from the estate, subject to the terms of the Will and applicable legal requirements.

Executors can seek professional assistance from:

  • A bank or specialist probate department.
  • A Trust Corporation.
  • A solicitor.

You can also instruct a stockbroker, accountant, tax adviser or other specialist to deal with particular aspects of the estate without employing a professional to handle the entire administration or submit the probate application.

Here are some important considerations when deciding whether to administer an estate yourself.

Liability

As an executor or administrator, you have legal duties to administer the estate properly and act in accordance with the Will or applicable inheritance laws.

If you decide to administer the estate yourself, you must understand your responsibilities. You may be personally liable if you breach your legal duties, for example, by distributing assets incorrectly, failing to pay outstanding debts or mishandling estate funds.

Instructing a professional can help reduce the risk of mistakes, but it does not automatically remove your responsibilities as an executor.

If you feel unable or unwilling to act as an executor, you should consider obtaining legal advice about your options, which may include renouncing your appointment or arranging for another suitable person to administer the estate.

Your time

Make an honest assessment of the time you have available and your ability to undertake what can be a complex and time-consuming task.

There are many things to organise when someone dies, from identifying and valuing assets to dealing with debts, taxes, financial institutions and beneficiaries.

It is easy to overlook important steps or become overwhelmed, particularly when you are also dealing with bereavement and other personal responsibilities.

Problems

You should seek appropriate legal or professional advice if a problem arises that you are unsure how to resolve.

Trying to deal with complicated legal or financial matters without the necessary experience can lead to delays, additional costs and potential personal liability.

The complexity of the estate

If the Will or the estate is complicated, obtaining professional advice is strongly recommended.

Circumstances in which specialist advice may be particularly important include:

  • The estate is insolvent or may not have sufficient assets to meet its debts.
  • A beneficiary cannot be located.
  • Someone intends to challenge the Will.
  • There are concerns about the validity of the Will or the original Will cannot be found.
  • Someone is entitled to a life interest in the estate (known as a ‘liferent’ in Scotland).
  • Beneficiaries include children under the age of 18 in England and Wales, or under 16 in Scotland, particularly where trust arrangements are required.
  • The deceased owned a business, was a business partner or owned agricultural property.
  • The deceased was a Name (an investor) in the Lloyd’s of London insurance market.
  • A trust is created under the Will or there are existing trust arrangements that affect the estate.

In these circumstances, professional advice can help ensure that the estate is administered correctly and that the personal representatives understand their legal and financial responsibilities.

Expert assistance

If you decide to administer an estate yourself, Lawpack is here to help.

Our DIY Probate Kit for use in England & Wales provides access to probate forms and a 62-page guidance manual written by probate experts to help guide you through the process.

The manual also includes template letters and examples of completed forms to help you understand the paperwork involved in administering an estate.

The kit is intended to help with straightforward probate matters. If the estate involves disputes, complex assets, trusts or other legal complications, professional advice may still be necessary.

Other information

What is probate?

Probate (known as confirmation in Scotland) is the legal process of obtaining the authority required to deal with the money, property and possessions of someone who has died.

The wider process is known as estate administration. It involves identifying and collecting the deceased’s assets, paying outstanding debts and taxes, and distributing the remaining estate to the people entitled to inherit under the Will or the rules of intestacy (where there is no valid Will).

The people responsible for administering the estate are known as personal representatives. In England and Wales, they are generally called executors if appointed under a Will, or administrators if appointed by the court. In Scotland, they are generally known as executors.

Depending on the circumstances, the personal representatives may need to obtain a formal legal document before they can access and deal with certain assets.

In England and Wales, this is usually a grant of probate or letters of administration. In Scotland, it is known as confirmation.

A grant or confirmation is not required in every estate. Whether one is needed depends on the nature and value of the assets, how they are owned and the requirements of the financial institutions or other organisations holding them.

It is important to deal with the estate promptly following a death, ensuring that assets are protected and that relevant legal and tax obligations are met.

When is a grant of probate or confirmation required?

A grant of probate or confirmation may be required depending on the size, composition and ownership of the deceased’s estate.

There is no universal financial threshold that determines whether a grant is necessary in England and Wales. Banks, building societies and other financial institutions have their own policies and may release smaller amounts without requiring a grant.

Some institutions may accept a registrar-issued death certificate and other supporting documentation before releasing funds.

In other circumstances, particularly where the deceased owned property or other assets solely in their name, a grant or confirmation may be necessary before the personal representatives can deal with those assets.

In Scotland, estates valued at £36,000 or less are generally classified as small estates for confirmation purposes. Different procedures apply to small and large estates.

The grant or confirmation provides formal authority for the personal representatives to collect and administer the deceased’s assets and distribute the estate in accordance with the Will or applicable inheritance laws.

How long does probate take?

Probate and estate administration can be complex and time-consuming. The overall timeframe depends on the size and complexity of the estate, the assets involved and whether any complications arise.

For a straightforward estate, the overall administration process may take approximately six to nine months.

However, obtaining the grant of probate is only one stage of the process. In England and Wales, the Probate Service currently advises that a grant or letters of administration will usually be issued within approximately 12 weeks of submitting an application, although delays can occur.

The subsequent administration may involve collecting assets, settling debts and taxes, selling property, resolving disputes and distributing the estate to beneficiaries.

More complicated estates can take a year or longer to administer.

Should professional advice be sought when administering an estate?

It is possible to administer many straightforward estates without professional assistance. However, there are circumstances in which obtaining advice from a solicitor or suitably qualified probate professional is strongly recommended.

Examples include:

  • The estate is insolvent or there are concerns that it may not have sufficient assets to pay its debts.
  • A beneficiary cannot be located.
  • Someone intends to challenge the Will.
  • There are concerns about the validity of the Will or the original Will cannot be found.
  • A beneficiary is entitled to a life interest in the estate (known as a liferent in Scotland).
  • Beneficiaries include children under the age of 18 in England and Wales, or under the age of 16 in Scotland, and arrangements involving trusts are required.
  • The deceased owned a business, was a business partner or owned agricultural property.
  • The deceased was a Name (an investor) in the Lloyd’s of London insurance market.
  • The Will creates a trust or contains complex trust provisions.

Professional advice can help personal representatives understand their legal responsibilities, minimise the risk of mistakes and ensure that the estate is administered correctly.

Number of live-in landlords at historic high

According to data released by flatshare platform SpareRoom, rooms provided by live-in landlords (homeowners renting out spare rooms to lodgers) made up 34% of total UK flatshare supply during the third quarter of 2026. The total number of live-in landlords remains at a historic high compared to a decade ago.

The research has shown the following interesting statistics:

Room rents reach new highs

SpareRoom’s rental index for the third quarter of 2026 reported that the average UK room rent reached £769 per month, a new record.

Average rents vary considerably by region. The latest figures include:

  • Greater London: £932 per month
  • South East England: £709 per month
  • East Anglia: £687 per month
  • South West England: £689 per month
  • Yorkshire and the Humber: £569 per month
  • North East England: £554 per month

These are average advertised rents, including bills, rather than guaranteed earnings for individual lodger-landlords. Actual income will depend on the location, size and condition of the room and the facilities offered.

Renting a room for extra income is booming

According to a recent lodger-landlord survey, the primary motives for taking in a lodger have become much more critical to daily financial survival: 
  • Meeting Day-to-Day Costs: 51% of modern lodger-landlords rent out a room simply to meet baseline everyday expenses like food shopping and utility bills.
  • Covering the Mortgage: 25% now directly rely on their lodger’s rent to keep up with their increased monthly mortgage repayments.
  • Supplementing Retirement: 28% use the extra stream of income to actively save for retirement or top up an existing pension.
  • Paying Down Debt: 12% are utilizing the cash injection specifically to pay off alternative outstanding debts or loans. [1, 2]

Tax relief for lodger-landlords

The government’s Rent a Room Scheme allows eligible resident landlords to earn up to £7,500 per tax year tax-free from letting furnished accommodation in their only or main home. The threshold is reduced to £3,750 where the qualifying income is shared with another person.

If your gross receipts exceed the threshold, you may need to complete a tax return. You can generally choose between the Rent a Room Scheme and the normal method of calculating taxable rental profits, depending on your circumstances.

The scheme does not apply to every room-rental arrangement; for example, the accommodation must generally be furnished and form part of your home, rather than a separate self-contained flat.

Protect yourself with a written lodger agreement

Before your lodger moves in, it is important to agree on the terms of the arrangement in writing.

A lodger agreement can set out:

  • The amount of rent payable and when it is due.
  • Which rooms and facilities the lodger can use.
  • Responsibility for household bills and other costs.
  • House rules, including arrangements for guests and shared spaces.
  • The notice required to end the arrangement.
  • Any deposit taken and the circumstances in which deductions may be made.

A written agreement helps both parties understand their rights and responsibilities and can reduce the risk of misunderstandings or disputes.

You should also consider checking references, agreeing an inventory of any furniture provided and ensuring that your insurance arrangements are suitable.

Help from Lawpack

We produce a range of lodger titles to help you rent out your room easily and protect yourself and your property by getting the contract in writing. These are as follows:

Get your agreement with your lodger in writing today.

Top tips for taking in a lodger

Taking in a lodger has never been more popular. With household bills putting pressure on budgets, taking in a lodger can be a useful way to earn extra income from a spare room.

Read our top tips on what you need to think about when letting out a room in your home.

What is a lodger? 

Simply put: A lodger is someone who rents a room in a property that is also the landlord’s home. The arrangement may include shared use of a kitchen, bathroom or living room, and may include additional services such as meals or laundry. 

Taking on a lodger has become a very popular way to earn extra money. According to data from flatshare platform SpareRoom, rooms offered by live-in homeowners represent a massive portion of the rental ecosystem, accounting for 24% to 34% of the total UK flatshare market supply.

Whatever deal is reached, it is highly recommended to take out a lodger agreement – with Lawpack’s Lodger Agreement template available to buy and download.

Do I have to declare any payments?

The UK government allows you to receive up to £7,500 a year tax-free for letting out furnished room in your home. This is known as the Rent a Room scheme.

If you share a house and both of you rent out a room, or rooms, then the maximum amount drops to £3,750.

Under the rules a lodger can rent anything from a single room to an entire floor in your family home. However, this will not apply if you separate areas into different flats. Nor does it apply for unfurnished rooms.

If you exceed the maximum amount or rent out an unfurnished room you must declare the payments as income to HM Revenue & Customs and pay tax in the normal way.

Can anyone take in a lodger?

Theoretically anyone can take in a lodger, even if you are renting your home, and still benefit from the Rent a Room scheme.

However, your mortgage lender or the property landlord may prohibit the practice depending on your agreement with them.

Furthermore, it is always a good idea to check with your home insurance provider to ensure that it is on board with your decision to take in a lodger.

You can ensure that lodgers agree to terms and conditions favourable to insurers and mortgage providers by making use of a lodger agreement template.

How do you evict a lodger?

Where the resident landlord shares living accommodation, such as a kitchen or bathroom, with the lodger, reasonable notice is generally sufficient. A court order is not usually required.

Lawpack’s solicitor-approved Notice to Terminate a Lodger Agreement can be used to give notice to your lodger.

However, should a lodger refuse to leave you may need a court order if you want to evict them.

This emphasises the importance of drawing up a lodger agreement that both parties agree to before the lodger moves in.

A contract will help smooth any legal hurdles required to evict a lodger.

Do I need to make a lodger agreement?

As a lodger is strictly speaking not a tenant, you do not need to draw up a tenancy agreement, however, writing up a lodger agreement is necessary.

This will help to avoid any future problems by clearly setting out both your and your lodger’s requirements and boundaries.

Furthermore, a clearly drafted written agreement, using an approved lodger agreement template, will help facilitate any legal challenges that may occur if the relationship sours.

How do you find a lodger?

Given how difficult it can be to evict a lodger, choosing the right person to share your home is vitally important.

There are a number of websites which allow you to draw up an advert and read profiles of prospective lodgers.

Universities often provide a list of available rooms to their students. By contacting local institutions you could have your property listed.

Do the new tenancy deposit laws apply to taking in lodgers?

If you take a deposit from a lodger, you should set out the amount, the circumstances in which deductions may be made and the arrangements for returning it in your written lodger agreement.

In England, deposits taken from lodgers are generally not subject to the statutory tenancy deposit protection requirements that apply to certain other residential tenancies. Keeping a receipt and a detailed property inventory can help prevent disputes over deductions.

Solicitor-approved lodger agreement and property inventory templates are available through Lawpack.

Other information

Why landlords must write a Will

If you’re a landlord, you probably think it’s far too morbid to be thinking about writing a Will.

But due to the high value of a landlord’s property investments it’s more important than ever that landlords think about what will happen to their assets after their death.

Why landlords need a Will

If you haven’t thought about writing a Will, then you’re not alone. Estimates suggest that between 47% and 63% of adults in the UK haven’t made a Will.

Many presume that their property and possessions will automatically pass to their spouse/partner when they die, but if you die without writing a Will (legally termed as ‘dying intestate’), your estate will be distributed according to the law of intestacy and this may not be according to your wishes.

Find out why our outdated intestacy laws mean you should be making a Will now.

When a landlord dies intestate all the landlord’s buy to let properties are divided between their spouse and surviving blood relatives, according to the law of intestacy.

So if you haven’t got round to writing a Will, there’s a chance that your spouse will not receive your estate in total. And if you’re not married and living together with a partner, your partner may not receive anything of your estate as cohabitant partners are not automatically recognised in intestacy law.

Find out how cohabitant partners are dealt with under the law of intestacy.

Should a landlord die suddenly without writing a Will, the administering of the landlord’s estate and buy to let property portfolio can be complicated and may be contested. Sorting out a landlord’s estate after death can be a drawn and painful process for the landlord’s relatives and loved ones.

By writing a Will landlords can legally state who they want to directly receive their assets, including their buy to let properties, following their death and reduce any confusion, conflict and legal costs for their families.

What should be included in a landlord’s Will?

Before a landlord writes a will, it’s always a good idea for a landlord to think about what they want included in their will. A landlord should consider the following:

  • How much money and what property and possessions a landlord has.
  • Who will benefit from the landlord’s Will?
  • Who should look after any children under the age of 18?
  • Who is going to be appointed as an executor to sort out the landlord’s estate and carry out a landlord’s wishes after their death?
Does a landlord need a solicitor to write a Will?

The simple answer is, no. One in five of us write a Will ourselves. Lawpack has helped over one million people to write their Wills with our bestselling DIY Will Kit. The Kit includes template Will forms plus an expert guidance manual, written by a solicitor, which guides you through the process of completing and signing your Will form.

What happens after a landlord has made a Will

Landlords should remember that once they have written a will, it’s vital that they store it in a safe place and tell their executor, close friend or relative where it is.

Landlords must keep their Will up to date. Landlords should review their Will every five years and make a new Will if any major changes occur; for example, they separate, get married or divorce, have a child or move house.

Find out more on when you should revise your Will.

Top tips on letting for first-time landlords

As the housing market slows, more and more people are being driven to rent property and rents are reaching record highs. Many people are also becoming landlords for the first time as they can’t sell their property and decide to rent it out instead.

Demand for rental property has never been so high and it’s a great time to generate extra income as a landlord.

But what are your obligations as a landlord and how do you get ready for tenants? Here are our top tips on what you need to think about when renting out a property and what you need to do to protect yourself, your property and maximise your rental income.

1. Preparation

Before potential tenants view the property, make sure that it’s clean and that you have finished any DIY. Will you let the property out as furnished or unfurnished? Remember that if you’re providing ‘contents’, then you need appropriate landlord insurance.

2. Health and safety

It’s vital that you comply with fire, gas, electrical safety and furniture regulations.

You must make regular safety checks and keep records to protect your tenants. Safety checks also help to ensure that your insurance is valid.

3. Using a letting agent

Letting agents are useful if you don’t have time to manage your rental property, but they take between 8-15% of the gross rental income for standard management tiers, though a comprehensive ‘Fully Managed’ service (especially in major cities like London) can frequently reach up to 18% or 20% plus VAT. Although they help you to find tenants, do still get involved with the tenant interviews as it’s important that you’re comfortable with the person moving in. Also, do make sure that you’re getting the most competitive deal from your letting agent.

4. Finding tenants

If you’re letting out the property without using a letting agent, then you need to reference the tenants yourself. Websites, such as Rentcheck’s Tenant Checking Service, can do it for you at a fixed price. It’s vital for you to find out if your tenant is able to pay the rent with a credit check and broader tenancy reference.

5. Know landlord and tenant rights

When renting out a property it’s important that you know your obligations as a landlord. If you want to enter the tenant’s home, for example, then you must give the tenant at least 24 hours’ notice for inspections or repairs; emergency circumstances differ. Lawpack’s Landlord’s Letters provides you with all the template letters you need to help you easily liaise with your tenant.

6. Draw up a tenancy agreement

A tenancy agreement is a great way of protecting your rights and the property. Lawpack’s tenancy agreements are all solicitor-approved and include a long list of terms and conditions, which outline, among others, whose responsibility it is to upkeep the property.

Find out more on the dangers of not making a tenancy agreement.

7. Take a deposit

Getting a deposit is a good way of protecting against any damage and all landlords must register a tenant’s deposit with an approved Tenancy Deposit Protection (TDP) scheme. The maximum deposit a landlord can ask for is up to 5 weeks’ rent if the rent for the year is less than £50,000 and up to 6 weeks’ rent if the rent for the year is £50,000 or more

8. Make a property inventory

Making a detailed and accurate property inventory is vital if you want to protect your rental property, particularly if it’s furnished. A property inventory proves how the property looked and what was provided the day the tenant moved in and is proof of evidence should there be a dispute over the deposit or any damage to the property.

9. Get insurance

It’s important that you get landlord insurance cover, as most standard house insurance policies don’t provide the level of protection landlords need. A good insurance policy should cover professional tenants, students and DSS tenants, loss of rent, unoccupied periods, alternative accommodation, tracing and accessing leaks, accidental damage, legal expenses and liabilities, plus rent protection.

10. Obtain an Energy Performance Certificate

By law landlords need an Energy Performance Certificate, detailing the energy efficiency of the property, in order to let or sell it.

11. Eviction

If your tenants are becoming a nuisance and you need them to leave, then you need proof that the tenants have broken the terms of their tenancy agreement. If the tenants are in rent arrears you can start eviction proceedings with Lawpack’s Section 8 Notice.