Where do I stand, boyfriend, his dad and sis buying a house

lynzpower

I was loathe to interfere overly in your relationship OP but as I see it this point by BB is most pertinent

You could buy a home together if OH wanted you too - ok with him having bigger share. Why isn't he enabling this? A 25% share would cost you less than £200 pcm.

Not being harsh but does this guy have long term future plans for you as a couple 'cos at the moment he's making long term plans to saddle himself financially with his sister.

This is really the bottom line.

The partnership isnt equal here, and while this is all going on, trying to find equality while living there may well put you under a great deal of emotional [pressure.

irnbru_2

louise_1981 wrote:

Can anyone clarify my position?

Become a tennant. Pay half or a proportion of the rent.

Don't pay any capital costs.

I guarantee the little sister (LS) will tell you that it's *their* house not yours.

If you do start paying rent and the LS gets all bossy, report her for not delcaring income

barnaby-bear

irnbru wrote:

Become a tennant. Pay half or a proportion of the rent.

Don't pay any capital costs.

I guarantee the little sister (LS) will tell you that it's *their* house not yours.

If you do start paying rent and the LS gets all bossy, report her for not delcaring income

In the short term rent sounds a good idea, however Louise obviously would like to have a home with her partner and in 18 months LS unlikely to be bought out and if rental situation continues how long before resentment that she could/should be buying a home together as a couple and he has the stability. Buying a house because of fees / intial costs etc is along term venture. So renting could be for a while.

Acc72

I know what Barnaby Bear is saying about the OP wanting a home with her partner, but this will never be the case in this scenario (the house will always be seen as belonging to her boyfriends family).

The only way around this is for the OP and her boyfriend to rent a place and to pay all bills 50 / 50.

The opportunity of buying a place together is also a non-starter.

As the OP earns £11k a year and her boyfriend has £50k cash to spend, there will never be an equal balance anyway.

irnbru_2

barnaby-bear wrote:

In the short term rent sounds a good idea, however Louise obviously would like to have a home with her partner and in 18 months LS unlikely to be bought out and if rental situation continues how long before resentment that she could/should be buying a home together as a couple and he has the stability.

In which case the OP needs to know the motives for the LS's contribution to the purchase. Has she contributed for capital growth? If so, when is she going to want to realise it?

louise_1981 wrote:

Now we have become grown ups and he has bought a house with his dad and sister owning half and oh owning the other. It is three bedroom. and my oh and I are planning to live in it.

Now either the family contributed so that the OP and the BF had a home or the family wanted a property (property prices only ever rise, you know :rolleyes: ) and the OP is an adjunct to it.

IMHO, it's the BF who hasn't thought through the implications.

Could the OP and the BF have raised the remaining 50K jointly? Did the BF consider this, even as an IO mortgage? Is the BF really grown up?

Gorgeous_George

I suggest, as others have, that a tenancy agreement is drawn up where you rent 50% from dad and BF rents 25% from LS.

Sounds like people are being too eager to get a property that they cannot afford by themselves. It's things like this that support high house-prices. Could LS not run to 50% of the house and BOTH you and BF rent from the owners? this would leave you both free to buy when the time is right for the two of you.

Good luck

GG

r.mac_2

hi there.

Gosh me - what a complicated situation. Ultimately, i think that you need to be very careful. It sounds awful to think of ways a situation can go wrong - but ultimately if you plan ahead for such events should they ever actually be realised you will know where you stand and how to deal with them.

Who actually owns the house? Is it co-owned between all three (OH, dad and sis) and are the three names on the deeds? Or have dad and sis 'invested money in the house while OH is sole owner? this will have a difference over the influence each person has on the property.

If dad and sis never intent to live in the property, then it makes more sense that they loan the money to your OH and he is sole owner. This can be done by normal contractual agreement and at a certain point in time (either a specific date or on resale) the vaule of the property can be split and your OH repay the intial amount plus/minus the percentage fluctuation of the property value back to dad and sis.

This means that they have no call on the property themselves on a day to day basis and would not be able to interfere in decor etc - Its purely a business transaction. However, I'm not keen on mixing family and business that much. As your OH has put down 50% in cash- why hasn't he decided to go for a 50% mortgage????

What are his reasons for going in with his family in this manner? (possibly to avoid interest on a mortgage - but i personally feel that its a complicated and high risk way of operating) I think you should ask this question.

However, if they are all co-owners then there may be rocky times ahead. If sis part owns the house she can legally (in scotland - can't comment on england) use the property. You cannot make her sell her share to you either so i would be very clear about everyones intentions from the outset.

It sounds like you haven't all sat down together and discussed how in practise this will work - i urge you to do this asap.

If I were you, and they were co-owners of the property I would offer to pay OH rent (market value) and contribute to bills. I would not contribute to fixtures and any fittings I bought would be wholly mine and removable. I would suggest you keep all reciepts for anything you buy (you should do this anyway).

Rimo2021

louise_1981 wrote:

Can anyone clarify my position?

Just be sure you are paying no more than a lodger would pay to rent a (shared) room in a shared house - because that is all you are from a financial point of view. Any extra money you have you should save (pref in an ISA) for a deposit on your own place should your relationship end and you be made suddenly homeless.

matto

You should be aware that the government is considering introducing new legislation that will give co-habitees more rights than currently exist.

http://news.bbc.co.uk/1/hi/business/6124182.stm

If you are only a lodger you may find you are not entitled to these rights.

You should also be aware that paying for and doing work on a house as part of a relationship is one way of acquiring an interest in the house although this is notoriously difficult to prove and enforce.

http://england.shelter.org.uk/advice/advice-6338.cfm

"You may also be able to stay if you can prove you have a 'beneficial interest' in the home. Beneficial interest usually means you have made some kind of contribution, usually financial, to the home. You may have to go to court to prove you have beneficial interest before you can stay in the home. Even if you are married or in a civil partnership it could still be worthwhile claiming beneficial interest, as, if successful, it may improve your chances of being able to stay in the home."

louise_1981

thanks for expenading on that Matto