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    • Helendoyle95
    • By Helendoyle95 12th Feb 18, 6:47 AM
    • 1Posts
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    Helendoyle95
    Can I let someone input into the bills?
    • #1
    • 12th Feb 18, 6:47 AM
    Can I let someone input into the bills? 12th Feb 18 at 6:47 AM
    Me and my partner bought a place together back in August 2017 we moved in. In February 2018 we have now split up and weíre looking at the options we have for the house. I want to keep the house if I can cause itís closer to work. Only problem is, I canít afford the house and bills completely on my own. Am I allowed to let a friend use a spare room and give me some money towards bills without it become a rental agreement? I donít wanna hide anything from the bank but I want to stay in this house. My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.
Page 1
    • Browntoa
    • By Browntoa 12th Feb 18, 6:57 AM
    • 32,439 Posts
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    Browntoa
    • #2
    • 12th Feb 18, 6:57 AM
    • #2
    • 12th Feb 18, 6:57 AM
    Rent a room scheme , no need to tell mortgage company

    No tenants rights
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    • cjdavies
    • By cjdavies 12th Feb 18, 7:00 AM
    • 3,091 Posts
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    cjdavies
    • #3
    • 12th Feb 18, 7:00 AM
    • #3
    • 12th Feb 18, 7:00 AM
    Your ex is better coming off the mortgage, otherwise it could last years and gets messy.
    • McKneff
    • By McKneff 12th Feb 18, 7:00 AM
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    McKneff
    • #4
    • 12th Feb 18, 7:00 AM
    • #4
    • 12th Feb 18, 7:00 AM
    Or class as a lodger....
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • 00ec25
    • By 00ec25 12th Feb 18, 8:09 AM
    • 5,965 Posts
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    00ec25
    • #5
    • 12th Feb 18, 8:09 AM
    • #5
    • 12th Feb 18, 8:09 AM
    Am I allowed to let a friend use a spare room and give me some money towards bills without it become a rental agreement? I don!!!8217;t wanna hide anything from the bank but I want to stay in this house.
    Originally posted by Helendoyle95
    no, you cannot receive money and it not be a rental agreement.

    it would however merely be a lodger
    - they have few rights
    - you can receive up to £7,500 per year tax free
    I don!!!8217;t wanna hide anything from the bank but I want to stay in this house.
    Originally posted by Helendoyle95
    - lenders (your bank?) very rarely ever need to know about you taking a lodger. Read your mortgage terms and conditions since we cannot see them from here, it will be explained what you can and cannot do in there. Whether you choose to not tell them anyway is a different question

    My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.
    Originally posted by Helendoyle95
    that is very naive and likely to lead to problems in the future

    - will ex stop paying towards the mortgage? If he keeps paying then he continues to increase his share of the equity.

    - what about the share of the equity that has built up so far? Why is he not going to get his fair share of that as well? Why is he being given only his deposit?

    - how will you split the costs of selling?

    - does ex realise that as long as he stays on the deeds/mortgage for this property he will need to pay higher rate SDLT if he buys a new place to live himself?
    Last edited by 00ec25; 12-02-2018 at 8:12 AM.
    • AnotherJoe
    • By AnotherJoe 12th Feb 18, 8:28 AM
    • 8,227 Posts
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    AnotherJoe
    • #6
    • 12th Feb 18, 8:28 AM
    • #6
    • 12th Feb 18, 8:28 AM
    no, you cannot receive money and it not be a rental agreement.

    it would however merely be a lodger
    - they have few rights
    - you can receive up to £7,500 per year tax free


    - lenders (your bank?) very rarely ever need to know about you taking a lodger. Read your mortgage terms and conditions since we cannot see them from here, it will be explained what you can and cannot do in there. Whether you choose to not tell them anyway is a different question

    that is very naive and likely to lead to problems in the future

    - will ex stop paying towards the mortgage? If he keeps paying then he continues to increase his share of the equity.

    - what about the share of the equity that has built up so far? Why is he not going to get his fair share of that as well? Why is he being given only his deposit?

    - how will you split the costs of selling?

    - does ex realise that as long as he stays on the deeds/mortgage for this property he will need to pay higher rate SDLT if he buys a new place to live himself?
    Originally posted by 00ec25

    Good advice generally but regards "share of equity that has built up" they only bought in August
    • DigForVictory
    • By DigForVictory 12th Feb 18, 8:45 AM
    • 7,364 Posts
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    DigForVictory
    • #7
    • 12th Feb 18, 8:45 AM
    • #7
    • 12th Feb 18, 8:45 AM
    My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.
    Originally posted by Helendoyle95
    This week, yes.
    It would be frankly financially dangerous to let that carry on.

    Things happen. Life moves on. Suddenly you or he have an opportunity - but the joint mortgage is an anchor. As you are managing to be civilised about bringing the relationship to an end, try to do a complete job & sever the financial ties too.
    • Mutton Geoff
    • By Mutton Geoff 12th Feb 18, 8:52 AM
    • 1,106 Posts
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    Mutton Geoff
    • #8
    • 12th Feb 18, 8:52 AM
    • #8
    • 12th Feb 18, 8:52 AM
    Although well advised to take your ex off the mortgage, if you are having to take in a lodger, it is unlikely the bank will accept you as sole mortgagor since you may well fail their affordability tests (salary multiples etc).
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • Norman Castle
    • By Norman Castle 12th Feb 18, 9:16 AM
    • 6,643 Posts
    • 5,402 Thanks
    Norman Castle
    • #9
    • 12th Feb 18, 9:16 AM
    • #9
    • 12th Feb 18, 9:16 AM
    My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.
    Originally posted by Helendoyle95
    If you do this keep comprehensive proof of how you've funded the mortgage payment to defend future claims of ownership.
    Don't harass a hippie. You'll get bad karma.

    Never trust a newbie with a rtb tale.
    • TBagpuss
    • By TBagpuss 12th Feb 18, 10:29 AM
    • 6,256 Posts
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    TBagpuss
    I stromngly recommenbd that you and your ex have a formal separation agreement drawn up making clear the limits of his interest in the property, and whether by giving him back his deposit you mean a fixed sum or a % of the value of the house based on the % of the purchase price his deposit amounted to. Your agreement should also set out how much notice each of you needs to give to end the agreement, i.e. when he decides he dopes want his name off the mortgage and his money back (you could, for instance, agree that he would not do so until any current fix on your mortgage expires)

    The agreement should be drawn up professionally and signed by both of you.

    in relation to having someone in, as previous ;posters have said, you will need to check your own mortgage conditions and also your home insurance, but subject to that should be able to take in a lodger. As you will still be living in the house as well, they won't be a tenant, but it would be sensible for you to have a written agreement setting out how much they will pay, how much notice you need to give them if you want them to leave (this can be any 'reasonable' amount of time - 1 -2 weeks is not uncommon for lodgers) and whether they will be paying a deposit.

    On a practical level, if you do take in a lodger, don't forget you won't qualify for single person's discount on your council tax.
    • G_M
    • By G_M 12th Feb 18, 11:02 AM
    • 43,185 Posts
    • 50,751 Thanks
    G_M
    LODGERS (Licencees/Excluded Occupiers)
    A lodger (broadly) lives in the same property with a resident landlord & shares facilities. Unlike tenants, lodgers have few rights.

    The Housing Act 1988 provides definitions of 'Resident Landlord' & 'same property' (S31 & Schedule 1 (10).

    See:

    LodgerLandlord (21 tips from solicitor Tessa Shepperson + General information site)

    Landlordzone (Various articles on taking in lodgers)


    Renting out rooms in your home (Government info)

    Rent a Room Scheme (HMRC guide for tax-free income from lodgers)
    • Mutton Geoff
    • By Mutton Geoff 12th Feb 18, 1:27 PM
    • 1,106 Posts
    • 1,178 Thanks
    Mutton Geoff
    If you do this keep comprehensive proof of how you've funded the mortgage payment to defend future claims of ownership.
    Originally posted by Norman Castle
    The claim of ownership is already there. The proportion of mortgage/bills payment doesn't make any difference. The % split of ownership has already been set with a tenants in common, joint tenants agreement or other % agreed via the solicitors during the purchase.


    This is one issue not to sweep under the carpet and hope it's OK on the day of reckoning. A proper legal document needs to be drawn up asap.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • Tom99
    • By Tom99 13th Feb 18, 1:40 AM
    • 1,243 Posts
    • 799 Thanks
    Tom99
    The claim of ownership is already there. The proportion of mortgage/bills payment doesn't make any difference. The % split of ownership has already been set with a tenants in common, joint tenants agreement or other % agreed via the solicitors during the purchase.
    .
    Originally posted by Mutton Geoff
    Presumably that can be altered by a new deed of trust. If the ex receives deposit back now and is not contributing to any future mortgage payments then this could record a 0%/100% tenancy in common.

    Since then the ex would then have no beneficial interest in the property I think they also avoid the additional stamp duty if they buy elsewhere.
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