Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • renkin
    • By renkin 21st Sep 16, 4:22 PM
    • 4Posts
    • 1Thanks
    renkin
    How can I invest into the flat we re moving in ?
    • #1
    • 21st Sep 16, 4:22 PM
    How can I invest into the flat we re moving in ? 21st Sep 16 at 4:22 PM
    Hi all,

    my girfriend and I will be moving in together in a flat she s going to buy with a mortgage and a deposit made of her parents saving, plus hers.

    We'll be living into this flat but it is planned to be sold at some point to finance retirement in another location.

    I couldn't take part financially before ( i'm a freelancer and in the UK since a year and a half ) but now my situation is better, I'm looking for ideas about how to invest into the fllat.
    I would pay her a rent regardless of what happens, which is 50pc of the mortgage repayments + bills

    I was thinking of :
    - going the tenants in common route,
    - adding money to the deposit,
    - and finally paying her a rent that will be used to pay the mortgage and get the equivalent value in ownership, then get paid this amount when we sell the flat later on.

    Of course we could split up, which is why i thought any of those option makes things easier in case it happens.

    What do you think ?
    Thanks
Page 1
    • Guest101
    • By Guest101 21st Sep 16, 4:34 PM
    • 11,088 Posts
    • 10,458 Thanks
    Guest101
    • #2
    • 21st Sep 16, 4:34 PM
    • #2
    • 21st Sep 16, 4:34 PM
    If you're paying towards the mortgage you are gaining a beneficial interest in the property anyway
    • phill99
    • By phill99 21st Sep 16, 5:01 PM
    • 7,546 Posts
    • 6,757 Thanks
    phill99
    • #3
    • 21st Sep 16, 5:01 PM
    • #3
    • 21st Sep 16, 5:01 PM
    Maybe she doesn't see you as a long term partner, merely the means to buy a flat. Hence you are not in the equation in terms of home purchase.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • missbiggles1
    • By missbiggles1 21st Sep 16, 5:04 PM
    • 14,545 Posts
    • 26,261 Thanks
    missbiggles1
    • #4
    • 21st Sep 16, 5:04 PM
    • #4
    • 21st Sep 16, 5:04 PM
    If her parents are helping her to finance this partly as an investment for their retirement, the last thing they'll want is for you to be taking a slice!
    • hazyjo
    • By hazyjo 21st Sep 16, 5:05 PM
    • 8,099 Posts
    • 9,789 Thanks
    hazyjo
    • #5
    • 21st Sep 16, 5:05 PM
    • #5
    • 21st Sep 16, 5:05 PM
    Does she want you to gain a beneficial interest in the flat?


    If so, as above - just pay half of everything. If not, you should not contribute towards the mortgage or large home improvements.


    Personally, I would advise you to save as much as possible, to not contribute towards the mortgage, and to buy somewhere joint once you have an amount near to matching her money in the flat.


    I'm guessing you are young, but it's weird you're talking about this property as being something for your retirement. Perhaps you are much older than I'm interpreting.


    Jx
    2016 wins: ESPA gift set; jumper; lip balm x 2; kitchen scales; perfume; shoes; theatre tickets; Champagne; books; After Eights; Diet Coke; Molton Brown duo; fish slice; travel set
    • missbiggles1
    • By missbiggles1 21st Sep 16, 6:04 PM
    • 14,545 Posts
    • 26,261 Thanks
    missbiggles1
    • #6
    • 21st Sep 16, 6:04 PM
    • #6
    • 21st Sep 16, 6:04 PM
    Does she want you to gain a beneficial interest in the flat?


    If so, as above - just pay half of everything. If not, you should not contribute towards the mortgage or large home improvements.


    Personally, I would advise you to save as much as possible, to not contribute towards the mortgage, and to buy somewhere joint once you have an amount near to matching her money in the flat.


    I'm guessing you are young, but it's weird you're talking about this property as being something for your retirement. Perhaps you are much older than I'm interpreting.


    Jx
    Originally posted by hazyjo
    I took the retirement in question to be the parents'.
    • marksoton
    • By marksoton 21st Sep 16, 6:27 PM
    • 15,785 Posts
    • 35,378 Thanks
    marksoton
    • #7
    • 21st Sep 16, 6:27 PM
    • #7
    • 21st Sep 16, 6:27 PM
    I took the retirement in question to be the parents'.
    Originally posted by missbiggles1
    Me too. And it all sounds rather messy....
    I'm an idiot troll. Apparently...
    • G_M
    • By G_M 21st Sep 16, 6:28 PM
    • 35,896 Posts
    • 39,168 Thanks
    G_M
    • #8
    • 21st Sep 16, 6:28 PM
    • #8
    • 21st Sep 16, 6:28 PM
    ....... ( i'm a freelancer and in the UK since a year and a half )
    Originally posted by renkin
    How long have you known each other?

    If no longer (or less) than this, and given that she's clearly decided to buy the property herself, relax and go with the flow!

    Contribute to communal expenses like food, cleaning stuff etc, and pay rent - as you'd have o to live anywhere.

    When the relationship is ready, move to a bigger home that you buy together.
    • renkin
    • By renkin 21st Sep 16, 11:42 PM
    • 4 Posts
    • 1 Thanks
    renkin
    • #9
    • 21st Sep 16, 11:42 PM
    • #9
    • 21st Sep 16, 11:42 PM
    Hola all, thanks for the replies ! Let's clarify :

    Their parents are already retired. She will sell this new flat later to finance our retirement (or hers, if !!!! happens ) and we know each other for a year and a half.
    I'm 33 and she's 37, it's her first time buying a flat.
    We wanted to live together for a while and talked a lot about it, so I felt like I should contribute in some way.

    All the ideas above are my ideas, so far she's been quite reluctant to allow me in financially.

    As you said I'm not part of the equation and that saddens me a little. Maybe I should keep my money and save as much as possible ?
    Only contribute to communal and small DIY.

    Cheers
    • xylophone
    • By xylophone 22nd Sep 16, 12:11 AM
    • 18,382 Posts
    • 10,296 Thanks
    xylophone
    Your girlfriend's parents are gifting her part of the deposit in order to enable her to buy a flat.

    The mortgage will be in her name only.

    She does not appear to want to buy the property with you - you will be living in her home.

    You should pay her an agreed rent and your share of CT/utilities/food.

    Save as much as you can towards a deposit on a property of your own in case the relationship founders.

    If it doesn't, then you can look to buying a property jointly in due course.
    • PasturesNew
    • By PasturesNew 22nd Sep 16, 12:18 AM
    • 55,215 Posts
    • 316,403 Thanks
    PasturesNew
    Pay the rent into your own separate bank account. A new "savings" account.

    Pay her half the bills.

    That way, if you split up, you take your savings; if you don't, then you put that money into the property (or the next one) at some future point.
    • BrassicWoman
    • By BrassicWoman 22nd Sep 16, 6:22 AM
    • 951 Posts
    • 4,054 Thanks
    BrassicWoman
    I would not let "just a boyfriend" in financially, especially after 18 months. Also she has much more to lose than you.

    It's too messy if there's a breakup.
    May GC 215/50 (oops)
    April 2016 GC: 24.09/ 20
    • getmore4less
    • By getmore4less 22nd Sep 16, 6:25 AM
    • 25,556 Posts
    • 15,468 Thanks
    getmore4less
    Pay the rent into your own separate bank account. A new "savings" account.

    Pay her half the bills.

    That way, if you split up, you take your savings; if you don't, then you put that money into the property (or the next one) at some future point.
    Originally posted by PasturesNew
    That will be the a test are you partner or lodger with benefits.
    • FBaby
    • By FBaby 22nd Sep 16, 6:39 AM
    • 13,742 Posts
    • 35,335 Thanks
    FBaby
    You need to be honest with each other and come up with a compromise. She's clearly indicated to you that she isn't keen on you having a beneficial interest, which means that she really doesn't want you to. You are here asking advice about how you can do so, so this is only going to go pear shape if you don't start communicating with each other about how to move forward.

    I agree that the only way you can make it work is how Xylophone is suggesting. You are accepting that you are not going to invest in the property that she wants to keep for herself, but in that case, you want an opportunity for your own investment.

    You need to accept that your investment might not be as good as hers because you are not in a position in time to invest as she can. She needs to accept that she can't say her place is her investment, but then expect you to pay towards it.

    I personally think that the best way forward is for her to pay the full-mortgage and you to pay half of the bills. You put your savings towards the investment of your choice. She could however argue that if you were not together, you would need to pay rent. However, if you were not there, how much rent could she get from a flatmate if anything? In this instance, you should agree on an amount, maybe between 1/3 and 1/4th of the mortgage.

    Hopefully your relationship will progress by which all this will become redundant anyway.
    • lewishardwick
    • By lewishardwick 22nd Sep 16, 9:45 AM
    • 250 Posts
    • 209 Thanks
    lewishardwick
    My partner had to sign a document for the lender agreeing to not have any financial interest in the property I am buying.

    As he is (currently) unemployed he will pay no rent and only make small contributions to food and running costs. (mainly because there'll be someone in the property for most of the day, if he worked it'd be empty). If/When he seeks employment, then we'll have to discuss further and come to an arrangement. But it'll be significant less than 50% of mortgage+running costs.

    Whilst I see the point of everything being 50/50, she has more to gain (and lose). You will get no benefit of property value increases, but are somewhat protected from decreases too.

    Your proposals will require approval from the lender and the solicitor.
    • missbiggles1
    • By missbiggles1 22nd Sep 16, 10:00 AM
    • 14,545 Posts
    • 26,261 Thanks
    missbiggles1
    My partner had to sign a document for the lender agreeing to not have any financial interest in the property I am buying.

    As he is (currently) unemployed he will pay no rent and only make small contributions to food and running costs. (mainly because there'll be someone in the property for most of the day, if he worked it'd be empty). If/When he seeks employment, then we'll have to discuss further and come to an arrangement. But it'll be significant less than 50% of mortgage+running costs.

    Whilst I see the point of everything being 50/50, she has more to gain (and lose). You will get no benefit of property value increases, but are somewhat protected from decreases too.

    Your proposals will require approval from the lender and the solicitor.
    Originally posted by lewishardwick
    Why only a small contribution, why not half?
    • lewishardwick
    • By lewishardwick 22nd Sep 16, 10:04 AM
    • 250 Posts
    • 209 Thanks
    lewishardwick
    Why only a small contribution, why not half?
    Originally posted by missbiggles1
    If he paid half of everything, the chances of him being able to put money into savings would be slim (low earner).

    If for some reason we were to split, it would not be unreasonable for him to pursue me for a 'share' of the property. Especially as I would have benefited from him paying 50% of the mortgage.

    Of course, I could always put whatever he pays into saving for such an eventuality and then either repay it if we break up, or use it for a future mutual benefit such as a joint purchase.
    • Kynthia
    • By Kynthia 22nd Sep 16, 10:17 AM
    • 4,426 Posts
    • 6,390 Thanks
    Kynthia
    Jointly owning a property is a big financial commitment. If there is a mortgage involved then it links your credit records, you are tied to a debt that lasts longer than most marriages and it's linked to an asset that is illiquid and can decrease in value. Sorry but I wouldn't do this with someone after 18 months. Perhaps after a while you can buy into the property if your relationship is serious.

    You need an honest discussion with each other. Plus while I don't believe you should live their rent free while she has little money leftover each month, I also don't believe you should pay half tge mortgage while not benefiting from.any equity gained (although yiu aren't at risk of negative equity either). So I'd suggest something in between but it's for you two to discuss and agree.
    Don't listen to me, I'm no expert!
    • missbiggles1
    • By missbiggles1 22nd Sep 16, 10:21 AM
    • 14,545 Posts
    • 26,261 Thanks
    missbiggles1
    If he paid half of everything, the chances of him being able to put money into savings would be slim (low earner).

    If for some reason we were to split, it would not be unreasonable for him to pursue me for a 'share' of the property. Especially as I would have benefited from him paying 50% of the mortgage.

    Of course, I could always put whatever he pays into saving for such an eventuality and then either repay it if we break up, or use it for a future mutual benefit such as a joint purchase.
    Originally posted by lewishardwick
    Why would he expect to be saving while he's unemployed? In fact, why would he expect to be saving if he's on a low income and not paying his share of the bills - to me that seems like it's your money he's saving?

    (Apologies if I've misunderstood.)
    • Guest101
    • By Guest101 22nd Sep 16, 10:43 AM
    • 11,088 Posts
    • 10,458 Thanks
    Guest101
    Why would he expect to be saving while he's unemployed? In fact, why would he expect to be saving if he's on a low income and not paying his share of the bills - to me that seems like it's your money he's saving?

    (Apologies if I've misunderstood.)
    Originally posted by missbiggles1
    I think in many cases people pay proportionately to what they earn.


    So if a bill is 100


    And one person earning 10k and the other 20k (after tax), they split the bill 33 and 66.


    It's not what everyone does, but it has benefits in the long term.
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,547Posts Today

5,761Users online

Martin's Twitter