Moving out of Parents with Student friend.

Duncan1234

Hi,

This thread will be quite long and cover quite a few topics but I felt it was best posted here.

Myself and a friend are looking to move out of our parents homes to get a flat / house together. We are both 21 and we stay in Fife, Scotland.

I work 19 hours a week and earn just under £800 after tax monthly. I will be trying to double my hours and thus wage at any possibility I can although it may not happen within the next year. My friend is a student at college studying Highers and has applied for university next year. He currently gets roughly £320 bursary and travel expenses a month. This is expected to increase next year when he goes to university and he will be having a loan on top of it. It is obviously looking like he will need to get a part time job to support this choice.

I have made up a list of costs that would be split and Individual monthly costs aswell. First and foremost I would be grateful if anyone could add to this, or adjust. There is bound to be things I have under estimated or excluded.

Monthly bills to split

• Rent £350 - £450
• Council Tax £75-£115 a month - (includes 25% student discount and water + waste bill)
• Electricity £50
• Gas £20
• Virgin 10mbbb, lowest tv package,free weekend calls £34
• House Shopping stuff £30
• Tv License £12

Total to be split £571 - £711

Monthly Individual bills

• Car insurance £60
• Petrol £40 (this is where my friend will have high costs, hopefully SAAS yearly travel expenses will help, he will be travelling either 25 or 35 miles each way to Uni 4/5 days a week)
• Car costs £30 (reckon £30 monthly covers tax mot repairs etc)
• Phone £10
• Food £50

We will both live cheaply when it comes to food and heating. Both of us are quite happy (read - used to) being cold and will happily eat asda price food (have unlimited free eggs from families farm!). Electricity we are both a bit of a hog with id imagine. Laptops, tvs, games consoles, the usual.

Next I was wondering what sort of upfront costs I can expect of moving out. Deposit and any other fees, I really cant seem to find a good list and rough amount of these.

Next is council housing questions. My situation at home is that I sleep on the couch. I had lived with my Girlfriend until 6 months ago and then split and moved home to parents. There is not a bedroom for me and I sleep in the living room, clothes have no storage etc. Does this effect my ability to get council housing or will I be flung to bottom of list with no hope? Even if this is plausible is it stupid to think I could ask for a 2 bedroom place as a joint claim or something with my friend?

Next is more for my friends benefit but I don't know if he has considered allot of this yet. If he moves out before applying for funding from SAAS will he receive more since he is not living with parents? Can he apply for any form of housing benefit while he is a student? Or any other funding?


I think thats everything I can think of for now. No doubt I will have more questions spring to my mind later on. I thank anyone that has read through this essay and thanks in advance for any help.

Cheers, Duncan

BitterAndTwisted

Rent: a month's rent in advance

Deposit: Four to six week's worth of rent.

Fees: Credit-checks and referencing. Who knows? Depends on the landlord/agent thinking up a figure.

Your estimate of gas for heating and hot-water is dangerously optimistic.

Ditto food.

Do you have any idea how unattractive you may appear to a landlord with how little income you have between the pair of you? Plus the risks of renting to people with little to no credit-history. You should fully expect to have to furnish the landlord with a guarantor each. Could you persuade your parents to be guarantors? They would need to be credit-checked as well.

Swans1912

Doesn't look like a sensible option.

If you do make the move then split your bills by account. So if you pay £70 Gas and Electric you have the account in ONLY your name. Your friend then has account in ONLY their name for a similar amount.

This way if your friend can't pay their half... it is only the half that they have a personal commitment to. This way their debt can't chase you.

Duncan1234

BitterAndTwisted wrote: »

Rent: a month's rent in advance

Deposit: Four to six week's worth of rent.

Fees: Credit-checks and referencing. Who knows? Depends on the landlord/agent thinking up a figure.

Your estimate of gas for heating and hot-water is dangerously optimistic.

Ditto food.

Do you have any idea how unattractive you may appear to a landlord with how little income you have between the pair of you? Plus the risks of renting to people with little to no credit-history. You should fully expect to have to furnish the landlord with a guarantor each. Could you persuade your parents to be guarantors? They would need to be credit-checked as well.

Thanks for the response. Really is what I expected haha.

How much more gas would you expect us to use? I have personally never experienced gas usage really as my parents have a tank that has to be filled due to where we stay and price is around 2.5x normal. Food also?

I had thought about the low credit rating + income issues but not to much depth. My job is 100% secure working for the largest local employer and is well known around the area. My parents would be happy to act as guarantors, couldn't answer for my friend.

19lottie82

OP – My main worry here would be that you will be moving in with a friend, who as a student, will have a limited income. They may decide further down the line that they can’t afford to share with you anymore and return to their parents, BUT if you rent a flat together you are likely to be jointly and separately liable for any rent remaining within the fixed term contract, plus other bills if they are in joint names.

In regards to Council Tax, you’re friend will be exempt as he is a student. You will be liable for whole bill, minus a 25% single person discount.

The fact that you are sleeping on your parents sofa, should move you up the Housing Association ladder. I’d get down there and explain your situation. IMO a social housing property would be a better idea for you than a private (more expensive) rental. Doubt you will get a 2 bed though.

PS To answer your question about the gas estimate, £20 a month may be appropriate for the Summer months, but during the winter expect this to increase 4 fold.

tam2oo5

Hi there, i personally think your quote for gas/elec isnt too far off. I would imagine that both would come in around £100 per/month. You sum up the costs of renting pretty well, only problem is your friend is on a very low income as could cause problems for you. I know that with SAAS travel expenses they are only issued 1/2 per year in a lump sum and will only pay for the cheapest method. So they wont pay for his fuel for car ect if there is a bus that runs - even if it takes 2 hours each way - crazy i know. If you get a flat at the bottom end of your scale you may be able to do this with no problems.

Ive rented a flat at 550 per month before only earning 1300 after tax. Just think in the long run can you afford it and can your friend? will he some months find himself without any money and leaving u to pay the bills. Is he looking for part time work?

BitterAndTwisted

You need to have substantial savings to hand in order to secure any form of self-contained accommodation. I would estimate that your heating and hot-water bills could be £50 a month as a minimum. Everything depends on the form of heating (gas, leccy, oil) and the insulation of the property. Food I reckon £60 as as a minimum but not if you've never had to shop and cook for yourself.

Local Authority housing is entirely dependent on demand, however single able-bodied young people who are already housed are always at the bottom of the list. I would forget this possibility, really but you just never know.

The most sensible option might be for you to find a room/rooms in a house or flat-share as the individual cost could be a lot less than finding somewhere to rent together. Never forget that a sensible landlord would want you to sign a "joint and several" agreement, so if one of you can't pay their share of the rent the responsibility falls on the other one. This is a greater risk that you may imagine.

fg22

BitterAndTwisted wrote: »

Your estimate of gas for heating and hot-water is dangerously optimistic.

Maybe (given we're talking about Scotland) but I think the combined £70 for gas and electricity is reasonable and more than the average two bed flat should pay on a cheap tariff.

nomoneytoday

Wouldn't it make sense to move closer to the Uni - 25/35 miles a day will mount up...

19lottie82

fg22 wrote: »

Maybe (given we're talking about Scotland) but I think the combined £70 for gas and electricity is reasonable and more than the average two bed flat should pay on a cheap tariff.

I live alone in a 2 bed flat and my electricity is about £25 a month. When i had a housemate this went up to about £40 a month.

Gas ranges from £15 pcm - £80 pcm based on the season.

If there is 2 residents in a 2 bed flat. I'd budget £100 pcm for utilities averaged out over the year.

tam2oo5

19lottie82 wrote: »

I live alone in a 2 bed flat and my electricity is about £25 a month. When i had a housemate this went up to about £40 a month.

Gas ranges from £15 pcm - £80 pcm based on the season.

If there is 2 residents in a 2 bed flat. I'd budget £100 pcm for utilities averaged out over the year.

Lottie is given you some good advice. 100 over the year sounds about right..