Moving out of Parents with Student friend.

Duncan1234

iKennett wrote: »

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.

I get what you mean, so rather than joint we are responsible for seperate bills. But it doesn't seem like a good way to make it an even split.

I had thought that making a joint account that we both put the exact same amount into monthly would be the best idea. Although I will point out I have NO idea on the technicalities behind making a joint bank account etc. Any advice here would be appreciated.

19lottie82 wrote: »

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.

Thanks very much. Yeah that really is my biggest concern. We have found out there is a grant available for students living away from home which would up his current income to 450 a month before a job.

Yeah I thought it worked that if one student and one non student shared it was 25% discount, thanks for confirmation.

Really I would prefer to stay at home on the couch than live myself even if cheaply via housing association / council housing. I would not consider living myself really on 800pcm.

Thanks for the gas price advice.

tam2oo5 wrote: »

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?

Yeah I have previously been at College studying for an HND so have a good idea of how SAAS work. I beleive he would drive to nearest train station (8miles~) and train the rest of the way. Seems like the cheapest option.

£100 a month for gas and electric doesnt sound to bad, a little over what I expected for summer and about right for winter so I'm probably not to under averaged out.

My biggest concern is definetly him struggling and the position that would leave me in. I do not want to end up "lending" him money via paying more some months. Lending money via friends in this sort of situation just wouldn't work.

Thanks

19lottie82

Duncan1234 wrote: »

IMy biggest concern is definetly him struggling and the position that would leave me in. I do not want to end up "lending" him money via paying more some months. Lending money via friends in this sort of situation just wouldn't work.

Sounds like you are approaching this sensibly OP, but maybe it would be a good idea to wait until your potential housemate has a secure part time job under his belt until you start looking for a place.

Would his parents be willing to act as a guarantor (sp?) for your friend on the lease? This may put your mind at rest slightly. In fact, I think it might be the case that the majority of LA/LLs may ask fofr a guarantor when renting a property to a student?

BitterAndTwisted

Duncan: NO JOINT BANK ACCOUNT! Never. Too risky

sonastin

BitterAndTwisted wrote: »

Duncan: NO JOINT BANK ACCOUNT! Never. Too risky

Just to expand on that a little...

If you have a joint bank account, you become financially linked to your friend. If your friend then gets himself in a financial mess and ruins his credit record, it will also trash your chances of securing good credit down the line. You can disassociate yourself financially but it takes work and there is a good chance that you'll only find out about it when it is too late and you've been turned down for a loan/mortgage/credit application that you were really hoping for.

Add to that the risk that your friend could clean out the account if they got into real trouble and it is a big gamble to take. You obviously know your friend better than we do, but do you really know what the future brings - many people's behviour changes over time and you're both still young. Bad influences could come into your friend's (or your) life at any time.