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Moving in together - help!
Comments
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This is of course not quite the same, as she will have the benefit of any increase in equity of the house over that 12 months, whereas my rent payments will be essentially dead money.
I also think that I will lose out twice, paying rent for the next 12 months and then having to pay more to match her increased equity at the end of the 12 months.
Do you not live in the UK?? or have you been on holiday/posted abroad for the last 6 months?? House prices are falling, possibly even crashing at the moment.... watch the news over the next few days, today it was reported mortgage approvals at an all time low, tomorrow and wednesday the halifax and nationwide statistics come out which are not likely to be pretty at all.
The balance of probabilities overwhelmingly points to the house being worth less in 12 months that it is now. So you will to pay less in 12 months time that you would now to buy into an equal share of the house.
A bedding in period sounds very sensible - you are not loosing out anything from this as the rent covers you for having a roof over your head. You would not expect to live there for free surely! If you have a lodger type tenancy agreement you can be all legal + proper whilst allowing flexibility to change the arrangement. 12 months sounds like a reasonable time to know if you like living together.
I would suggest you don't invest in any improvements for the next 12 months until you have decided that you definately want to live there and get your name on the mortgage, which solves that problem. Also a good idea to spend that long shopping around, deciding what you want to do and sourcing the best/cheapest materials etc.. all good moneysaving!!0 -
I still don't get it - what's a fun draw?poppy100
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Its a place where you keep all your adult toys to "play" withI still don't get it - what's a fun draw?
Some people have a toy "box", some a "draw(er)", some a "wardrobe" and some just use their entire spare bedroom.
Freedom is not worth having if it does not include the freedom to make mistakes.0 -
What a great thread. Lovin' the unsuspecting twist - I too am a girl!
Two girls and a fun draw. I'm all hot and bothered now...0 -
Lotus-eater wrote: »Its a place where you keep all your adult toys to "play" with
Some people have a toy "box", some a "draw", some a "wardrobe" and some just use their entire spare bedroom.
aaah you mean "drawer" no wonder we were confused You're not your * could have not of * Debt not dept *0 -
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Irrespective of the fact that the market is currently moving downwards, upwards or sideways, I think your partner is being very coy about this offer for you to rent from her.
Ok, I've made a load of assumptions here, so admit I may look an !!! but have a look to see if anything strike a chord.
I understand you are probably very doey eyed at the moment, but I'm not so sure your partner is so convinced; she's even hinted at such by asking for "bedding in time".
The current mortgage is interest only, suggesting it's pretty huge. Would I be right in assuming the equity at present is relatively small, especially as you plan to match it?
Let's assume for example the equity is just 5%
Your partner currently owns the house with the bank having a financial charge over the property.
If you rent and there is a falling out between you, she kicks you out and keeps the house, irrespective of what happens to the market. You leave with nothing!
If you match the 5% equity, (giving a 10% equity in total between you) then let's look at 3 scenarios in the case you split up:
Market falls by 10% - value of property matches mortgage - you both leave with nothing or she has to find possibly 10% of new value to remortgage in her name (or you could do the same, making her leave). Mortgages are increasingly requiring at least a 10% deposit nowadays
Market remains flat - One or the other has to buy the other's equity else again you both leave, this time taking your equity with you. This would only allow you to both buy half the price house you currently have. (unless you find someone else to share with)
Market increases by 10% - your partner would need to buy out your share of the increased equity (or there's the danger you buy out hers!)
Can you see how much more advantage it is to the current owner to make you pay rent rather than take an interest in the property? Also by you paying rent, it avoids any uncertainty as to any possible claim you have as non-married partners sharing the same property (even if you don't put any equity in from the start). Clever! "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
Gnah!!!!!!!!
Its Bruno, he made me fall off my bar stool as well. Why does he SHOUT all the time. Reported.Freedom is not worth having if it does not include the freedom to make mistakes.0 -
If you match the 5% equity, (giving a 10% equity in total between you) then let's look at 3 scenarios in the case you split up:
Market falls by 10% - value of property matches mortgage - you both leave with nothing or she has to find possibly 10% of new value to remortgage in her name (or you could do the same, making her leave). Mortgages are increasingly requiring at least a 10% deposit nowadays
your partner is better off in this situation if you are added to the mortgage as you have shared the loss between you.
Market remains flat - One or the other has to buy the other's equity else again you both leave, this time taking your equity with you. This would only allow you to both buy half the price house you currently have. (unless you find someone else to share with)
your partner will be in a better situation if you are added to the mortgage as by you adding to the equity you will be able to get a better re-mortgage deal, and have shared the repayments leaving them more free cash to save/overpay/make improvements whatever.
Market increases by 10% - your partner would need to buy out your share of the increased equity (or there's the danger you buy out hers!)
not very likely in the short-term.
Can you see how much more advantage it is to the current owner to make you pay rent rather than take an interest in the property?
Nope I can not agree with your conclusion.
It would make a lot of financial sense for the OP's partner to add them onto the mortgage, but obviously this is a big commitment, especially if they have not lived together. If after 12 months they are still wanting the OP to pay rent then fair enough but at this stage it seems a very sensible move.
No way it means the OP's partner is not as into her as she is too him, some people are just more level-headed or cautious about these things. I hope the OP doesn't take offence or get upset about your post. as you say you make a lot of assumptions and jump to a not very nice conclusion.0
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