Girlfriend coming to live in MY house - what are the financial implications?

SoloBurr

Hi everyone,

I wonder if you can help? I own the house I live in (via a mortgage in my name only). It is quite a big chunk of money for me to pay by myself each month but I manage OK.

My girlfriend was renting a house and her agreement recently came to an end. We are thinking of moving in together. It will save both of us money and we will be together, so win win.

However the relationship is still quite new and having split from a long term partner before, I have made it clear that this will remain MY house and the mortgage and bills etc will stay in MY name. She would simply be staying with me and paying me some money for the privellage. She fully understands and has no problems with this, indeed she already owns a property back where she lived in Hungary which obviously I have no claim over (nor wish to have).

I plan to work out the monthly cost to be roughly half of all the bills and the mortgage. As I paid a lot into my mortgage with the initial deposit this total cost is a good chunk less than she would need to pay to rent 'half' a similar sized property, so she is very happy with the deal.

What are the tax (and any other implications) of doing this? I want it all above board and very clear so there are no nasty suprises down the line.

I had a little look and the 'Rent a room' scheme the government offers does not seem to fit with how we are going to be living? Like I said we will be a typical couple and share the full house.

So what would she be? A tennet? A lodger? A friend that gives me a contribution? And what safegaurds do I need (if any) to make sure that should we split in the future she cannot somehow get part of my house.

I've known many a friend just to keep quiet and take the money, but I would rather do it by the book!

HELP!

Mojisola

There's lots of good advice here - https://www.advicenow.org.uk/living-together/

chris_m

SoloBurr wrote: »

And what safegaurds do I need (if any) to make sure that should we split in the future she cannot somehow get part of my house.

Don't let her pay anything towards the mortgage or any maintenance costs on the house.
Splitting all other bills should be fine but you don't want any of her money going into the house itself, otherwise she "could" claim part of it should things go sour - which hopefully they won't.

BitterAndTwisted

Despite people's good intentions things can and often do change.

As soon as you accept a penny from her which could later be construed as rent, you are in danger of her successfully claiming a share of the equity. So, please do not do that.

Half of the utility bills: OK
Half on the Council Tax: OK
Half of the grocery shopping: OK as long as you can prove it.

No lavish holidays paid for the two of you in lieu of rent. Nothing towards repairs, maintenance or improvements. No furniture. Absolutely nothing else.

proc7400

Why not to draw a "rental agreement" with your new girflriend for the time being? Find out how much she paid previously (she managed to pay a rent before, she should be able to pay you). You won't have (for example) problems with the tax authorities (have a look on the website direct.gov.uk - rent a room scheme and tax - basically, if you let a room in your property you can receive up to £4250.00 tax free (per year). But then - you should contact your mortgage provider if it's ok to rent a room.. If I am correct, you can't sublet your property without agreement of your bank.

I do not think that your girlfriend will disagree (in the end of the day - your relationship is new and you are sort of helping her out... ).

MobileSaver

SoloBurr wrote: »

I plan to work out the monthly cost to be roughly half of all the bills and the mortgage.

If your girlfriend is paying half the mortgage and/or half of any improvements to the property then she (quite rightly) will be entitled to half the increase in value of the property between now and when/if you split up.

If she's only paying half the normal household bills then she won't be entitled to anything.

Stevo10

On a similar theme, if it goes down in value can you ask an ex partner for half the decrease in value?

My property has went down approx £20k, can I bin the mrs and ask for £10k, not that I'm going to, but just a though.

nenad

I do not think is fair to ask your girfriend to pay half of your mortgage, actually I do not think it is fair to gain any financial benefit from her - if we are talking about love here.
Offcourse, she should pay anything above your usual costs for council tax, utilities, if she wants extra SKY or broadband, half of shopping, etc...

However I would never take cash from her, but you could switch electricity bill to her name, she could pay for every second visit to gorcery shop....

If you want somebody to make money from, than you should consider lodger(s). You charge them whatever you want, they use your house and no strings attached.

I can't know how your life is going to be, but how would you value if she preapares food for you, if she cleans behind you, if she does various maybe small, but important things for you - e.g. wait for delivery or gas engineer, so you do not have to take a day of your job?

I do not like your attitude (MY house, half of mortgage), and hope you will find difference between girlfirend and lodger, otherwise you will be lost in everyday calculations if she pays you enough or not.

I wish you all the best for both of you

luke_bristol

A damning indictment of modern women, unfortunately

ads2312

luke_bristol wrote: »

A damning incidctmen of modern women, unfortunately

:T yeah probably thinks it's right for her to take half of his house too after living there for a week !

To me it sounds like you are doing exactly the right thing, protecting your assets.

Mojisola

nenad wrote: »

I do not think is fair to ask your girfriend to pay half of your mortgage, actually I do not think it is fair to gain any financial benefit from her - if we are talking about love here.

So it's okay for the GF to benefit financially from her BF by living for free in his house? If I was moving in with a partner, I'd wouldn't expect to live for free.