How to Divide Renting/House costs on part buy Dilemma?!

Sir_Danalot

I have a somewhat unusual situation and little advice to go on in resolving it. I hope some logical types have the patience to read my dilemma and help me get my head round it!

I will start by briefly describing my basic situation and confusion!

I want to move in with my partner. We are looking at part buy part rent houses. I have enough money in the bank to buy a 25% share in a house valued at £130,000. So I would be buying £32,500 straight away.

But then, what do we do about the rent part? I understand it to be approx £210 a month. You see, I will have already put £32,500 into the house, which has thus lowered the rent, and enabled us to live in a nicer house, with money I could have invested and be making interest on. I would like to get that back (25% equity in house, just the percentage I put in) should we split up (will have to see solicitor about arranging all that).

So, should I expect my partner to pay all the rent(210)? Because I have put in my lump sum, that means the rent will be lower etc. Her current rent is £475 a month where she lives(for a tiny flat), so it would be a massive saving for her too. If I paid half the rent too I would be putting in more than my fair share. Would I not?

My partner is the main earner (my business is currently making a loss!) so this is a factor. She earns approx 21k a year (very good hair stylist!).

I'm just trying to get my head around a fair way to divide the costs in our current situation. I have no other cases or advice to go on really.

Another thought I had was should I just pay one quarter of the rent as I have bought 25% of the house? What if it was a greater share, like 50%, would that change anything(the higher the percentage of the bought part the lower the rent on the same priced property)?

Of course, other bills would be 50/50.

I have very little to base all this on, and recognise this may be an unusual situation, so any thoughts about how to do this fairly would be greatly appreciated. Some good logical calculations on what costs and how to divide them would be nice, as that's not my strongest point!

neas

Which rock did you crawl from under?

I think its a great idea ... *Sarcasm* off.

Ok ill humour you.

Your 25k... that you want to get the same back or 'with interest' if you'd have left in a bank.... what do you think will happen to the 25k 25% share of a 100k house when the house devaues to 80k?

Your 25k... looses 25% of 100k-80k... i.e your 25k becomes 20k.

sooz

Love is.................................................

Chris2685

Can you actually qualify for buying a shared ownership place on the basis of having no mortgage straight away and just paying rent on the other 75%? I guess it's possible, but I can't see why anyone would do that instead of just renting or just getting a full mortgage - if you have the money for a 25% deposit, which it sounds like you do.

Sir_Danalot

neas wrote: »

Which rock did you crawl from under?

I think its a great idea ... *Sarcasm* off.

Ok ill humour you.

Your 25k... that you want to get the same back or 'with interest' if you'd have left in a bank.... what do you think will happen to the 25k 25% share of a 100k house when the house devaues to 80k?

Your 25k... looses 25% of 100k-80k... i.e your 25k becomes 20k.

Erm, rock? what's your point? You have not read my post properly and have completely misunderstood.

I am putting £32,500 into the house enabling me and my girlfrieind to get a nice place to live with cheap rent(saving her £265 a month in rent in the process, at least). IF we split up (something SHE has said we should plan for "just in case") I would like my 25% back (of the equity, as explained in my original post) whether the house has devalued or gained value. If it devalued much I would have lost out massively, so you see, there is a big risk putting this lump sum in, a risk which I am taking.

When I spoke about the interest I was highlighting that it was a large commitment from me money wise, in relation to ongoing rent etc. I dont want to, and could not get more than my 25% back from a part buy house so that does not even apply.

So you think I should put in 32.5 K and pay the rent as well, even though I get paid ZERO a year right now in a dead end industry while my partner is raking it in? Or have I misunderstood?

Please, can people read my post properly, this reply really hasn't shed any light on my problem, and I think I have somehow offended you, I don't know how though!

sooz

So how do you plan to pay your share of rent & bills if you are earning nothing?

If you are that concerned about the inequality of the initial outlay, why are you suggesting that you put the whole amount up? Why don't you pay £16, 250 and she raise the same amount, via a mortgage?

Sir_Danalot

Well, the problem is my partner would struggle to get a mortgage. She has unfortunately been black listed because of a previous occasion where a friend she was renting with did something or other to displease the landlord, I can't remeber the details. But she can rent, as that is what she is doing now. We don't want to spend a fortune either, and the rent part of the part buy scheme is very cheap. All the other houses near her are a fortune, we wouldn't be able to get a mortgage in that area. And renting by itself is pricey there too and dead money, so the less we pay on that the better.

Tis how we are thinking of it atm anyway.

JimmyTheWig

Sir_Danalot wrote: »

Erm, rock? what's your point? You have not read my post properly and have completely misunderstood.

I think they are saying that now is a bad time to buy a house. Nothing to do with your particular situation at all. Just that prices are on their way down and you are likely to lose money.

sooz

Sir_Danalot wrote: »

......been black listed because of a previous occasion where a friend she was renting with did something or other to displease the landlord.......

You mean they didn't pay the rent & got a ccj?

This goes WELL beyond displeasure....... burying your head in the sand & ignoring letters & court orders.

tweetyshells

You are putting in 25% in and expect the same back if you were to split up, so in a sence expect to live there rent free and still get the full 25% back.
Sounds unfair to me, you have invested your money, and you are moving in with your partner, as far as i am concerned you should be paying your fair share as much as her and just get it in writing that you will get the 25% back you put in at the end.

Sir_Danalot

Pretty much I imagine, i'm not that clued up on it!
I know her Father in law went Guarantaur for her so she can rent her flat now, so I suppose that would work for the house?