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

Arthurian

Will you throw her out if she fails to come up with the money?

ReadingTim

Mojisola wrote: »

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.

Not quite. BF shouldn't benefit from GF being there, so GF should only pay for the additional costs associated by her being there - council tax, food, gas, elec etc, but not the mortgage as that's not dependent on the number of occupants of the house; and anyway, BF doesn't want GF to have any kind of "claim on the house" should it all go sour. GF doesn't live rent free, but has no right of redress if it goes down the pan, and can be thrown out at a moment's notice.

It should be noted that the terms "BF" and "GF" are interchangable, but the point remains valid.

That said, even if BF did charge GF for a part of the mortgage as well as bills, I think she'd have a hard job getting any kind of "claim on the house" unless he'd been charging her for years, they had a child together, or got they married.

However, as the OP wants to do it 'by the book', it's probably not a good idea to admit that she's there to reduce his costs...!

Mojisola

ReadingTim wrote: »

Not quite. BF shouldn't benefit from GF being there, so GF should only pay for the additional costs associated by her being there - council tax, food, gas, elec etc, but not the mortgage as that's not dependent on the number of occupants of the house; and anyway, BF doesn't want GF to have any kind of "claim on the house" should it all go sour. GF doesn't live rent free, but has no right of redress if it goes down the pan, and can be thrown out at a moment's notice.

SoloBurr wrote: »

My girlfriend was renting a house

She was renting a house and, if she moved to another property, would have to pay rent. Why would she expect to live in her BF's house without paying something?

The OP wants to make sure she has no claim on his house in the future so a read of page 12 of http://static.advicenow.org.uk/files/lt-housing-2010-1208.pdf would be worth the time and drawing up a Living Together Agreement - http://static.advicenow.org.uk/files/livingtogether-agreements-2010-867.pdf - would be worthwhile.

SoloBurr

Thanks all for your replies so far - all appreciated regadless of opinion.

# 2
Mojisola - you hit it on the head as far as my thinking. She was paying more in rent and bills in her previous place than she woukld be by living with me. All I am trying to do is live with her while she pays a fair price, while still protecting my investment (my life's savings are in my house). I honestly do not think there is ANY chance of it ever getting problematic even if we did break up, but better safe than sorry.




We are not moving in together so I can fleece her! I love her, however I have always been brought up to be 50/50 in a relationship etc. If the roles were reversed I would not dream to stay with her and just give her a few quid extra for the small increase in council tax and utility bills etc - that would be a very one sided view to take. Not that it makes any difference to my thoughts, but please understand she is not some poor lost soul: she has property already which gives her a tidy income so she doesn't need to work to get by. Some of the views here seem a tad old fashioned as if she will sit at home and cook and clean for me and so I should not charge her a penny. Not so - she is financially secure already and has a lucrative career to boot. Moving in with me is very desireable and benficial to her too and she has zero concerns.




And please understand - whatever she pays will not be deemed payments to the mortgage. It will be a rental contract or something to that affect (this is what I am trying to clarify here). When I say 'half the mortgage' what I mean is the figure I calculate will be roughly equal to the costs of paying half of all the bills I need to pay each month, probably a little less to be honest. The deal is great for her as becuase I have put down a large deposit on my house the monthly payments are low. She was actually looking to rent a place which would cost a hell of a lot more and I told her that was silly, why doesn't she move in with me.




The main aim is just to make sure we have something secure nice in place that would in effect protect us both. I will read those links, thank you.

SoloBurr

BitterAndTwisted wrote: »

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.

Thanks for the response. Are you sure this is correct though? If we draw up a rental agreement or living together arangement how can paying rent give her any rights to the equity?

The house and mortgage and bills are all in my name. If there is an agreement in place then surely what she pays is just that - rent? Or were you meaning if we had nothing setup officially - in which case I can see your point. But that is why I want to make sure we get it all down in writing etc. having been through a break up with a shared house before I certainly don't want to do that again on a place I have invested my life's savings! :eek:

SoloBurr

MobileSaver wrote: »

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.

Thanks, though surely not quite right? If she did start paying towards the mortgage (which she won't) then she will only own a tiny percentage of the house compared to me (I put down a large deposit and have been paying the mortgage for years). As such any increase in the value of the property would surely have to be calculated proportionalty to the total equity we each own?

getmore4less

You should not base it on 1/2 the mortgage.

look at typical lodger rates for the area and house share rentals.

That determines a market rent which would be the max you should charge.
(lodger rates usualy include bills except phone)

SoloBurr

getmore4less wrote: »

You should not base it on 1/2 the mortgage.

look at typical lodger rates for the area and house share rentals.

That determines a market rent which would be the max you should charge.
(lodger rates usualy include bills except phone)

Thanks. I have done that already and what I am thinking of charging is a good chunk under the market rates for the area.

Soundgirlrocks

I've looking into this a bit my self as my boyfriend and I have just moved into a place together that I have bought. Worst case she could be awarded in court the monies she has put into the property, not what you put down as a deposit or the equity in the property if it suddenly shot up in value, less costs ie: interest on the mortgage.

My boyfriend and I were happy enough with that not that I think it's ever going to be an issue. With regards to rent a room I don't think you can use that as a work around, I think you have to maintain separate sleeping accommodation!

mattdragon2

You should be able to get a form from your bank where your girlfriend signs and it says she has no interest in the property.

I am not sure how that form works if she does pay rent and it goes towards your mortgage and she tries to claim it back. I don't get how a partner can claim part of the mortgage yet a lodger or renter cannot.