Translation:South of my house there is a small lake.
I think it's a good translation. I would guess that using "lies" for "ligger" hasn't been added for all questions because it's a bit less common/colloquial. Also, it might be that Swedish uses ligger a lot more widely than English uses "lies"; I'd probably never say "the spoons lie in the cabinet", for example. Still, if anyone else arrives here with that answer (a full year after the original poster!) I would suggest reporting it.