Buying flat with brother, girlfriend to move in, what "rent" does she pay?

System

what about..?

there are I assume 5 rooms;2 bedrooms , lounge, kitchen , bathroom
...if for eg the mortgage was £1000 that would be '£200 per room

The room you don't have to share (bedroom) is 200
the room your brother doesn't have to share (bedroom) but chooses to is £200

3 rooms at 200 each you have to share....so you split that 600 between the 3 of you, therefore you and bro pay 400 each the gf pays 200 for sharing the common rooms...

and 1/3 of all bills

Acc72

claretmatt wrote: »

This will all end in tears.....

I agree.

Ignoring the grandmother loan, you are to sign a joint financial commitment with your brother for the next 35 years.

As you are not happy now, these issues will only become magnified in the future.

I hope that I am wrong, but there is potential for a whole bunch of personal, relationship, family, financial, legal issues to develop.

Mojisola

Mojisola wrote: »

But the GF will be using the whole house, not just the brother's half.

onlyroz wrote: »

Which is why she should contribute a third towards the (non-mortgage) bills.

I don't understand why you think the GF shouldn't contribute towards the house (mortgage) costs.

Judith_W wrote: »

Just because they are sharing a bedroom, you will all be using the rest of the house 3 ways so why should it be different?

This is what I think is right - three people sharing, costs split three ways. It's how it would work if the three of them were renting the house together.

mountainofdebt

Mojisola wrote: »

I don't understand why you think the GF shouldn't contribute towards the house (mortgage) costs.

Because if the GF contributed to the mortgage wouldn't make her case stronger to claim on the property if the couple split up ?

This is what I think is right - three people sharing, costs split three ways. It's how it would work if the three of them were renting the house together.

Personally I would split the bills three ways - and if there are repairs to be paid for (such as boiler needing fixing) then the OP and his brother should pay for them 50/50 - and consider it the costs of owning a property?

Hotspur

You may be wise to look into the rent a room scheme which allows you to rent a room tax free, as there may well be tax implications otherwise.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

Ames

Have you discussed it properly with the girlfriend? There's been threads on here before about 'my boyfriend owns a house and expects me to pay rent, I'm paying dead money and he's getting equity in a house'.

Person_one

What are your reasons for buying with your brother?

I have to say, I think its a bad idea to buy a property with somebody if the intention isn't that you'll live together permanently. You're talking about making a 35 year commitment when you know now that the situation will likely change within the next few years.

I agree with those who said that living with a couple when you're single can be awkward. It might start to feel like their marital home that you're a lodger in! How will you all feel about them cuddling up on the sofa under a blanket, or having noisy sex, or sharing a shower, or having blazing arguments or any of the other normal things that couples do but that generally their brothers aren't around for!?

I'd seriously consider waiting a bit to buy somewhere on your own. Its just about a million times simpler and you stand a better chance of maintaining a good relationship with your brother.

skintchick

I would say treat her as a lodger in terms of money. So she should pay rent for her room at an appropriate rate for the area, then a third of all bills, and if any major things need doing she doesn;t have to pay for that (but she does pay for anything she breaks or damages).

Her rent should go directly towards the mortgage, ie split 50/50 between you and your bro. I would suggest setting up a house bank account out of which all bills go, and into which rent, etc is paid, so you and your bro pay your amounts and hers into that, and the bills come out of it. This keeps it all separate and easy to track.

Legally this is simplest.

however, I agree with what others have said that sharing with a couple is going to end up with you feeling shoved out in your own home. When it is just you and bro, you will probably share cooking, but when she moves in I would imagine she will cook for them (or he will cook for them) and you will end up cooking for yourself. It could end up feeling very lonely.

psychopathbabble

I would agree a fixed rate for gf to pay and it's split between you and your brother to do with as you wish... yes, they are sharing a room and the bills won't be much higher for her being there but in a normal rental situation, a couple renting a room would pay more than the single person. As you and your brother both own the house, it should be of equal benefit to you both.

ETA: If I moved into my boyfriends flat (he only rents though) I would expect to pay a similar amount to the person renting his spare room, although the bills would probably go down as I'd be making him turn the lights off and stuff!

You could also just pay her share straight into a contingency fund for any emergencies that may occur, and once you have built up a good savings pot use any further payments to pay Gran

psychopathbabble

Hotspur wrote: »

You may be wise to look into the rent a room scheme which allows you to rent a room tax free, as there may well be tax implications otherwise.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

You can rent a room out for up to £4k a year before paying tax.