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  • FIRST POST
    • ViktorOnopko
    • By ViktorOnopko 6th Sep 17, 8:55 AM
    • 93Posts
    • 201Thanks
    ViktorOnopko
    OH inheriting house
    • #1
    • 6th Sep 17, 8:55 AM
    OH inheriting house 6th Sep 17 at 8:55 AM
    Hi all,

    I wanted to split this out from my other thread on inheritance.

    I've been with my OH for almost 10 years, we're happily unmarried and have no kids. We've always rented. Financial situation to date has been mixed, OH earns ~21k p/a whilst I'm on £59k p/a. She had no savings whilst I have around £37k in the bank (in part due to a recent redundancy).

    Her mum passed away at the start of August, no father or siblings so estate passes to OH which includes the house.

    The house is with ~£380k with approx £35k to pay off the mortgage. We plan to move in to the house because a) it's nice and in an area which is seeing good house price increase b) OH wants to and c) we can pay off mortgage and live mortgage free. She is 28, I'm 36.

    I'd always thought we'd buy together. No we'll live in what is her house which I have no ownership rights too.

    We've discussed this a bit but aren't sure what our options are.

    Would I benefit from paying off a large slice of the outstanding mortgage? This would give me a small % of ownership plus would maybe be better than the current 1.5% savings I've got the money in.

    Would we be better off using her cash inheritance (£250-300k) to pay off the mortgage and I use my savings plus extra income to work together on furnishing the house?

    We plan to empty it and redecorate before moving in. We want to make it our home and see it as somewhere we'll live for a few years whilst we make it nicer and see the value grow. After that? Who knows, it depends how much we enjoy the house and how the location works for us.

    I don't really want to feel like a lodger but realise that I cannot do much that would make it feel as much my house as my OH.

    Advice welcome.
Page 1
    • xylophone
    • By xylophone 6th Sep 17, 9:06 AM
    • 23,416 Posts
    • 13,610 Thanks
    xylophone
    • #2
    • 6th Sep 17, 9:06 AM
    • #2
    • 6th Sep 17, 9:06 AM
    Had you looked into obtaining a mortgage so that you can purchase a 50% interest in the house?
    • Malthusian
    • By Malthusian 6th Sep 17, 9:24 AM
    • 3,290 Posts
    • 4,997 Thanks
    Malthusian
    • #3
    • 6th Sep 17, 9:24 AM
    • #3
    • 6th Sep 17, 9:24 AM
    You could always get married. Unless she's afraid you're a gold digger playing a very long game.
    • george4064
    • By george4064 6th Sep 17, 9:42 AM
    • 857 Posts
    • 909 Thanks
    george4064
    • #4
    • 6th Sep 17, 9:42 AM
    • #4
    • 6th Sep 17, 9:42 AM
    When I first read this I thought it said 'We are unhappily married'!!!!!



    Glad to find out that is not the case!
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
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    • phillw
    • By phillw 6th Sep 17, 10:21 AM
    • 937 Posts
    • 552 Thanks
    phillw
    • #5
    • 6th Sep 17, 10:21 AM
    • #5
    • 6th Sep 17, 10:21 AM
    I'd always thought we'd buy together. No we'll live in what is her house which I have no ownership rights too.

    We've discussed this a bit but aren't sure what our options are.

    Would I benefit from paying off a large slice of the outstanding mortgage? This would give me a small % of ownership plus would maybe be better than the current 1.5% savings I've got the money in.
    Originally posted by ViktorOnopko
    She has a house, you earn a lot more than her.

    If you both still want to keep finances separate then you should put your money into another property and rent it out, pay half the bills and some money towards rent, forget all the "but you earn more than me" arguments and go dutch for everything. She pays the outstanding mortgage on her own.

    Or get married, 50:50 split on all income and assets.

    Everything else is complicated and runs the risk of her pulling the "whats yours is mine, whats mine is mine".
    Last edited by phillw; 06-09-2017 at 10:23 AM.
    • macman
    • By macman 6th Sep 17, 10:22 AM
    • 41,349 Posts
    • 16,998 Thanks
    macman
    • #6
    • 6th Sep 17, 10:22 AM
    • #6
    • 6th Sep 17, 10:22 AM
    Whatever else you do, you should get your wills sorted out, if you haven't already. Should your partner pre-decease you, the estate will pass down under the intestacy rules and you may find yourself homeless.
    You are doubtless aware of this, but it's worth emphasising.
    No free lunch, and no free laptop
    • C_Mababejive
    • By C_Mababejive 6th Sep 17, 10:29 AM
    • 10,294 Posts
    • 9,340 Thanks
    C_Mababejive
    • #7
    • 6th Sep 17, 10:29 AM
    • #7
    • 6th Sep 17, 10:29 AM
    Of course you know this but do not put any money into that house without having your interest in it registered !

    A good solution would be to tidy up the house then next spring, put it on the market. OH can rake off the proceeds and then you can both jointly buy a property elsewhere,,,case closed,happy days.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
    • Audaxer
    • By Audaxer 6th Sep 17, 1:15 PM
    • 567 Posts
    • 244 Thanks
    Audaxer
    • #8
    • 6th Sep 17, 1:15 PM
    • #8
    • 6th Sep 17, 1:15 PM
    Of course you know this but do not put any money into that house without having your interest in it registered !

    A good solution would be to tidy up the house then next spring, put it on the market. OH can rake off the proceeds and then you can both jointly buy a property elsewhere,,,case closed,happy days.
    Originally posted by C_Mababejive
    Presumably they would have to take out a joint mortgage to do this, whereas now they have a mortgage-free property. If she did sell the inherited property, she would then have to decide how to invest the proceeds of the property as well as her substantial cash inheritance. I think it would be better to have a mortgage-free property, however if they do want to buy a new property jointly, another option could be for the OH to rent out her inherited property. She could then pay half the mortgage from her rental income and he could pay the other half from his salary.
    • le loup
    • By le loup 6th Sep 17, 1:45 PM
    • 3,636 Posts
    • 3,557 Thanks
    le loup
    • #9
    • 6th Sep 17, 1:45 PM
    • #9
    • 6th Sep 17, 1:45 PM
    What problems younger people give themselves by refusing to get married.
    • es5595
    • By es5595 6th Sep 17, 1:48 PM
    • 29 Posts
    • 29 Thanks
    es5595
    You seem surprised that she doesn't want to put a house, (that on her current salary she has little chance of ever affording) in joint names with you. Is she the one who doesn't want to get married or have you persuaded her there's no reason to?

    You say you've been together ten years, you earn three times what she does, and you've got savings but she's got nothing. Are those savings in joint names? Maybe if they were before she suddenly got this windfall she'd be much more prepared to share the windfall.

    From what you've said she doesn't sound like she's in a financially outstanding position and maybe your prior behaviour towards money/shared savings/looking after each other in the future/etc has understandably made her very reticent to share her windfall.

    I had a partner who made a lot out of how much more he earned, how he'd got savings, his previous failed marriage meant he didn't want to marry again etc which I went along with for a while until I realised that he was, possibly unintentionally, looking after his own interests and feathering his nest with no care for mine. And that's not what a partnership/relationship is about.
    • ViktorOnopko
    • By ViktorOnopko 6th Sep 17, 2:03 PM
    • 93 Posts
    • 201 Thanks
    ViktorOnopko
    You seem surprised that she doesn't want to put a house, (that on her current salary she has little chance of ever affording) in joint names with you. Is she the one who doesn't want to get married or have you persuaded her there's no reason to?

    You say you've been together ten years, you earn three times what she does, and you've got savings but she's got nothing. Are those savings in joint names? Maybe if they were before she suddenly got this windfall she'd be much more prepared to share the windfall.

    From what you've said she doesn't sound like she's in a financially outstanding position and maybe your prior behaviour towards money/shared savings/looking after each other in the future/etc has understandably made her very reticent to share her windfall.

    I had a partner who made a lot out of how much more he earned, how he'd got savings, his previous failed marriage meant he didn't want to marry again etc which I went along with for a while until I realised that he was, possibly unintentionally, looking after his own interests and feathering his nest with no care for mine. And that's not what a partnership/relationship is about.
    Originally posted by es5595
    Hi there - I think you've misunderstood. There's no issue here, I haven't asked her for our names to be put jointly on the house so that's not the context of the question.

    We've had separate bank accounts but have always split purchases in proportion to earnings for things like bills, rent etc.

    This is more a - what are the options in this situation. OH raised it with me rather than vice versa in a "What could we do to give you some ownership of this house?". On my part, it just felt a little strange in that it would be me living in her house.

    Thanks to others for the advice/input.
    • TheShape
    • By TheShape 6th Sep 17, 2:25 PM
    • 1,110 Posts
    • 864 Thanks
    TheShape
    I think the best solution would be for both OP and OH to own an equal 50/50 share (either as tenants in common or joint tenants) of the property. I think they could do one of the following:

    OH could gift 50% of the property to OP (a big ask).

    OP could buy 50% of the property from OH but would need £190k to do so.

    OP and OH could take out a joint mortgage (it would almost certainly have to be a joint mortgage) of £190k (or £170k if OP uses £20k of his savings). OH would keep the money, OP could commit to paying the mortgage, attempting to pay it off as quickly as possible. OH would be liable for the mortgage repayments if OP were to stop paying.
    • Malthusian
    • By Malthusian 6th Sep 17, 2:35 PM
    • 3,290 Posts
    • 4,997 Thanks
    Malthusian
    OH raised it with me rather than vice versa in a "What could we do to give you some ownership of this house?".
    Originally posted by ViktorOnopko
    Was she playing a Beyonce record in the background when she asked you that question?

    If you don't want to be a lodger then you will need to raise a mortgage of £190k to buy half the house off her. This will give her £190k in cash which she will have to do something with (or £155k after paying off the mortgage) but if you insist on living as two separate people then that would be her problem.

    Anything else is a partial solution. If you use your savings to buy £35,000 worth of furniture you are still only 16% of the way towards having equal ownership (owning an interest worth £35,000 in what is now a £415,000 house).

    On the other hand if having a small minority share in the house is enough to allow you to not "feel like a lodger", then give her two twenty pound notes for a 0.01% share.
    • getmore4less
    • By getmore4less 6th Sep 17, 3:29 PM
    • 30,248 Posts
    • 18,088 Thanks
    getmore4less
    Buy 1/2 the house, she could even be your lender, she had enough cash.

    You come up with a reasonable payment plan, that still allows you to contribute 50:50 to the refurb work.
    • atush
    • By atush 6th Sep 17, 3:34 PM
    • 16,333 Posts
    • 10,081 Thanks
    atush

    Everything else is complicated and runs the risk of her pulling the "whats yours is mine, whats mine is mine".
    Originally posted by phillw
    So sexist. It could be the other way round
    • atush
    • By atush 6th Sep 17, 3:38 PM
    • 16,333 Posts
    • 10,081 Thanks
    atush
    buy part of the house, either 35K worth, or 190K worth. Period.

    Or just get married for crissakes
    • cloud_dog
    • By cloud_dog 6th Sep 17, 3:57 PM
    • 3,254 Posts
    • 1,815 Thanks
    cloud_dog
    Are you together or not?

    Life is simple, people complicate it.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • bigadaj
    • By bigadaj 6th Sep 17, 8:27 PM
    • 10,687 Posts
    • 6,980 Thanks
    bigadaj
    Just need to follow the advice of the wurzels.
    • Malthusian
    • By Malthusian 7th Sep 17, 10:21 AM
    • 3,290 Posts
    • 4,997 Thanks
    Malthusian
    Just need to follow the advice of the wurzels.
    Originally posted by bigadaj
    Don't tell I tell 'ee? Thee's got in where thee cassn't back'n hasn't? Or should the OP give her the key to his combine harvester?
    • C_Mababejive
    • By C_Mababejive 7th Sep 17, 10:48 AM
    • 10,294 Posts
    • 9,340 Thanks
    C_Mababejive
    Never mix business with pleasure because if the realtionship fails, it will be everyman for himself.

    Here is a good spoonful of TOLATA...

    http://www.dailymail.co.uk/news/article-4857640/Therapist-ordered-fiancee-half-family-home.html
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
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