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    • 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 2
    • lewishardwick
    • By lewishardwick 22nd Sep 16, 11:01 AM
    • 250 Posts
    • 209 Thanks
    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.)
    Originally posted by missbiggles1
    He wont be saving anything whilst unemployed. He gets JSA only and has to bolster his living with his current savings (not very much).

    But Guest101 has kindly clarified. It might not be perfect, but it'll work for us.
    • renkin
    • By renkin 22nd Sep 16, 4:32 PM
    • 4 Posts
    • 1 Thanks
    renkin
    That's some sound advice here, thanks. all.
    I think I'll follow what Xylophone and many of you said, it would definitely be wiser to save towards a more personal asset while keeping the opportunity open to something common.

    I would then pay her half the bills, ct etc, plus some kind of rent.
    We talked about what this "rent" should be, and she proposed that that sum would be used to overpay the mortgage every year. I proposed to take care of DIY cost ( not including time doing it )
    It doesn't feel right to me that I help her pay for a house I don't own, but I don't want to be a lodger with benefits either.

    JUst wondering how we should split that rent and towards what. I like your model
    Lewishardwick too, if you could tell me more please ?

    Cheers !
    • Guest101
    • By Guest101 22nd Sep 16, 4:36 PM
    • 11,088 Posts
    • 10,458 Thanks
    Guest101
    That's some sound advice here, thanks. all.
    I think I'll follow what Xylophone and many of you said, it would definitely be wiser to save towards a more personal asset while keeping the opportunity open to something common.

    I would then pay her half the bills, ct etc, plus some kind of rent.
    We talked about what this "rent" should be, and she proposed that that sum would be used to overpay the mortgage every year. I proposed to take care of DIY cost ( not including time doing it )
    It doesn't feel right to me that I help her pay for a house I don't own, but I don't want to be a lodger with benefits either.

    JUst wondering how we should split that rent and towards what. I like your model
    Lewishardwick too, if you could tell me more please ?

    Cheers !
    Originally posted by renkin


    You cant be a 'lodger' no matter what.


    If you pay towards the mortgage, you gain a beneficial interest.
    • Soundgirlrocks
    • By Soundgirlrocks 22nd Sep 16, 4:56 PM
    • 317 Posts
    • 409 Thanks
    Soundgirlrocks
    I would then pay her half the bills, ct etc, .
    Originally posted by renkin
    Half your bills, if you were living else where you would still have to pay these bills they aren't her's alone they are joint.

    plus some kind of rent......It doesn't feel right to me that I help her pay for a house I don't own, but I don't want to be a lodger with benefits either.
    Originally posted by renkin
    Again if you were living else where you would have housing costs (probably higher than any rent you give your girlfriend).

    I would suggest looking at your cost of living alone v living with your girlfriend. The benefits of living with her (not the saucy kind!) shared utilities, council tax, food, are all cheaper as a couple. If by splitting the costs 50/50 you are still making a saving verses living alone then I don't think its unreasonable to pay half, even if its is money towards your gf mortgage. If you split you have still had cheaper housing, and if you stay together and get married then this all becomes somewhat irrelevant.

    Beneficial interest is a consideration by it really is only a major issue after several years of contributions (I don't think from memory the interest aspect of mortgage payments is factored in and since in the early days of a mortgage the bulk is interest any beneficial interest claim after a couple of years wouldn't amount to huge sums.

    Having said all that I would think it was reasonable that your girlfriend pays any major costs (like a new boiler) as if you were renting you wouldn't be expected to buy a replacement boiler
    Back in the red again but proud to have delt with my debts once so I can do it again!
    • Guest101
    • By Guest101 22nd Sep 16, 4:59 PM
    • 11,088 Posts
    • 10,458 Thanks
    Guest101
    Half your bills, if you were living else where you would still have to pay these bills they aren't her's alone they are joint.

    Again if you were living else where you would have housing costs (probably higher than any rent you give your girlfriend).

    I would suggest looking at your cost of living alone v living with your girlfriend. The benefits of living with her (not the saucy kind!) shared utilities, council tax, food, are all cheaper as a couple. If by splitting the costs 50/50 you are still making a saving verses living alone then I don't think its unreasonable to pay half, even if its is money towards your gf mortgage. If you split you have still had cheaper housing, and if you stay together and get married then this all becomes somewhat irrelevant.

    Beneficial interest is a consideration by it really is only a major issue after several years of contributions (I don't think from memory the interest aspect of mortgage payments is factored in and since in the early days of a mortgage the bulk is interest any beneficial interest claim after a couple of years wouldn't amount to huge sums. ***

    Having said all that I would think it was reasonable that your girlfriend pays any major costs (like a new boiler) as if you were renting you wouldn't be expected to buy a replacement boiler
    Originally posted by Soundgirlrocks


    *** by paying half the mortgage the OP could be entitled to half the increase in equity from increase in value though too
    • FBaby
    • By FBaby 22nd Sep 16, 6:18 PM
    • 13,751 Posts
    • 35,343 Thanks
    FBaby
    How far apart will your disposable income be? Because if one has a lot more than the other, you then face the question of who pays for the joint holidays, evenings out etc..., which again could be an awkward situation if you haven't agreed before.
    • BrassicWoman
    • By BrassicWoman 22nd Sep 16, 11:45 PM
    • 952 Posts
    • 4,055 Thanks
    BrassicWoman
    is there a reason you aren't getting married? it's much simpler when you are a legal couple.
    May GC £215/£50 (oops)
    April 2016 GC: £24.09/ £20
    • renkin
    • By renkin 23rd Sep 16, 1:00 AM
    • 4 Posts
    • 1 Thanks
    renkin
    *** by paying half the mortgage the OP could be entitled to half the increase in equity from increase in value though too
    Yes that's what I'd like to explore : what form it could take, is there a legal way, etc
    We looked and visited a lot of houses with investment in mind. The house will have a big value increase, so any kind of contributing will be beneficial.

    How far apart will your disposable income be? Because if one has a lot more than the other, you then face the question of who pays for the joint holidays, evenings out etc..., which again could be an awkward situation if you haven't agreed before.
    She have more, but everything we do together is split 50/50, including holidays, evenings, etc


    is there a reason you aren't getting married? it's much simpler when you are a legal couple.
    That's quite early at 18 months !
    • deannatrois
    • By deannatrois 23rd Sep 16, 2:59 AM
    • 4,178 Posts
    • 5,845 Thanks
    deannatrois
    If you aren't thinking of marriage.., you shouldn't be thinking of 'investing' in a property she clearly doesn't want you to have an interest in. Both require commitment and belief that you clearly don't share. Sorry, I don't mean that harshly. But I think you are wasting your time right now thinking of ways you can edge into 'investing' in a property your gf is buying.
    When people ask for adviCe I do my best to adviSe them on the best course of action but would be extremely grateful if people asked for advice rather than advise
    • BrassicWoman
    • By BrassicWoman 23rd Sep 16, 6:59 AM
    • 952 Posts
    • 4,055 Thanks
    BrassicWoman

    That's quite early at 18 months !
    Originally posted by renkin
    buying a house jointly is in some ways much more difficult to untangle than getting a divorce, which (legally) requires only the passage of time and some paperwork.

    I think you should back off; if you aren't ready for one because it's too soon, it's also too soon for the other.
    May GC £215/£50 (oops)
    April 2016 GC: £24.09/ £20
    • FBaby
    • By FBaby 23rd Sep 16, 7:22 AM
    • 13,751 Posts
    • 35,343 Thanks
    FBaby
    It's all well to believe you uveitis vested interest in a property but if it gets to the point of dispute proving it can be bey tedious and more importantly very costly often more than the amount in question.

    You are better off agreeing that you will don't contribute anything towards the house and invest your money in something else.
    • Pixie5740
    • By Pixie5740 23rd Sep 16, 7:35 AM
    • 8,351 Posts
    • 10,950 Thanks
    Pixie5740
    Yes that's what I'd like to explore : what form it could take, is there a legal way, etc
    We looked and visited a lot of houses with investment in mind. The house will have a big value increase, so any kind of contributing will be beneficial.
    Originally posted by renkin
    Why aren't you looking at properties with a home in mind because that's really what she (you) are trying to purchase. If you want to invest in something invest in stocks & shares, a BTL, Peer-to-Peer lending.

    The bottom line is that she does not want you to have any beneficial interest in the property. The mortgage lender won't want you to have any beneficial interest in the property. It's not something you can compromise about because it's an either-or situation. Don't contribute towards the mortgage, save your money so that in a few years time when she's looking to remortgage or you're looking for a new home you can apply jointly.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Soundgirlrocks
    • By Soundgirlrocks 23rd Sep 16, 10:53 AM
    • 317 Posts
    • 409 Thanks
    Soundgirlrocks
    I think there is a lot of hysteria around beneficial interest. Interestingly no one ever mentions it regarding adult children living at home who pay their parents room and board. You can find more information here

    The key point is, This can be a very complex area of law and you'll need the help of a solicitor if it applies to you.

    If your girlfriend is putting down all of the deposit, the mortgage is in her name (and therefor she is the one legally responsibility for its payment) a court is highly unlikely to award you to half of the equity in the property after a few years cohabiting. The longer you stay in that situation the greater your chances of being awarded slice of the pie, but a judge will look at what is fair for both of you. And you will have to prove why your share should be different to the legal title. You will have to pay the legal cost to pursue, what could amount to a relatively small amount of money.

    I suggest a little bit of common sense. If you and your girlfriend do move in together and you decide not to give her any money that she may use towards the mortgage then how will that impact on your relationship? Will you be loaded as you are effectively living rent & mortgage free? I know how I would feel as the gf in that situation and you would be out on your ear!
    Back in the red again but proud to have delt with my debts once so I can do it again!
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