Should my boyfriend pay my rent to my parents?

New_to_Avon

My boyfriend is moving into my house, which I own and pay the mortgage on. My parents paid my deposit on the house 4 years ago and we have a Declaration of Trust in place in which I agreed to pay them back a percentage of the profit from the house sale, in line with the percentage they put into the purchase.

House prices plummeted two months after the purchase went through and I have been in negative equity ever since. The house is still worth about £7k less than what I paid for it and my parents also paid for all the renovations as I couldn't afford it. The declaration of trust also takes this into account. If we take the house price plus the renovations as 100%, I own about 85% and my parents own 15%.

My boyfriend and I have agreed to split the bills and mortgage 50/50 and we are happy with this arrangement. What complicates it though is my parents insistence that he pays them "rent" on their 15% investment. They are asking that he pays them 15% of the going monthly rent in addition to what he is paying me. My mum even suggested he should be paying me the other 85% of the going rent!

I need some advice as to whether anyone thinks this is fair that as well as paying half the mortgage, that my boyfriend pays my parents 15% rent? We are at our wits end and it is making this process so complicated. It would also defeat the object of us moving in as we are not saving any money.

I look forward to hearing some points of view on this, thank you.

lostinrates

You bf should pay rent and nothing towards the mortgage imo. You can of course pay the mortgage from his rent.

gjchester

See the soliciter who drew up the Declaration of trust.

If you split up he may have a stake oin the house that would complicate matters, as it probably would not be documented in the trust deed. The document may need to be re-drawn yup to account for the changes.

New_to_Avon

gjchester wrote: »

See the soliciter who drew up the Declaration of trust.

If you split up he may have a stake oin the house that would complicate matters, as it probably would not be documented in the trust deed. The document may need to be re-drawn yup to account for the changes.

Thanks, we are having a cohabitation agreement drawn up in which my bf states he will have no rights to the house even if he has paid towards it, which should cover this. My parents are also re-doing there Declaration of trust to reflect the fact he will be living here.

JB1971

I don't understand why they would expect rent from him on their 15% investment if they've never expected it from you.

pleasedelete

Can't he just pay 35 per cent to you and 15 to them? You will still save 35 per cent plus half bills. Do they pay there 15 per cent of the mortgage ? Neither of you own it the bank does. If you sold they would lose their deposit and still owe there part of the shortfall (you would owe as well ). Would they prefer this?

I take it that they don't like him much and don't approve of you moving him in.

pleasedelete

I think I would consider selling. Taking the loss. Walking away and buying a new house in the future with the bf.

Sounds like your parents treat you like a child and want to control your life.

Never mix family and business (investments).

marywooyeah

New_to_Avon wrote: »

Thanks, we are having a cohabitation agreement drawn up in which my bf states he will have no rights to the house even if he has paid towards it, which should cover this. My parents are also re-doing there Declaration of trust to reflect the fact he will be living here.

firstly yes he should pay rent if he is to be living in your house, and secondly the agreeement is a good idea to prevent him from building up a constructive trust in the property.

I would calculate it as half of the going rent, eg if the average rent nearby is £450 he'd pay £225 and you could use this to pay off your parents/mortgage.

New_to_Avon

JB1971 wrote: »

I don't understand why they would expect rent from him on their 15% investment if they've never expected it from you.

Thats the whole problem, they see it as "letting" me live here as their gift to me, their daughter, they didn't think it through that I might need to live here with someone else. The problems only started once I decided I wanted to live with someone.

And no, in answer to the other post, they don't like him much!

[Deleted User]

Hi,

pleasedelete wrote: »

I take it that they don't like him much and don't approve of you moving him in.

my thoughts as well, just being awkward.

New_to_Avon

pleasedelete wrote: »

I think I would consider selling. Taking the loss. Walking away and buying a new house in the future with the bf.

Sounds like your parents treat you like a child and want to control your life.

Never mix family and business (investments).

My bf said you've got it spot on!