Should my boyfriend pay 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.

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.

hugoshavez

Parents sound pretty mercenary!

Do they not believe that he'll pay you? Have they reason to?

custardy

no,I dont agree
if he is paying them 15% net on their investment,then they take the profit on the sale price(if it was the case in the end)
then thats not what you and your parents agreed
he is paying 50/50 on bills & mortgage
is he going on as a part owner?

what does the bond state on selling at a loss?

New_to_Avon

custardy wrote: »

no,I dont agree
if he is paying them 15% net on their investment,then they take the profit on the sale price(if it was the case in the end)
then thats not what you and your parents agreed
he is paying 50/50 on bills & mortgage
is he going on as a part owner?

what does the bond state on selling at a loss?

Sorry, I don't quite understand what you mean, can you explain it a bit more?

To explain a bit more, I agreed that I wouldn't sell until the house recouped all the money invested in it, didn't know the market would crash two months after buying it! I agreed to split any profit with my parents. MY bf will not be a part owner in any way, I want to keep it as simple as possible!

snozberry

parents, eh? They are being awkward and are treating you like a child. Your fella shouldn't be paying them any rent at all but, please be careful when it comes to him contributing to your mortgage because, should everything go pearshape, be might be able to stake some kind of claim to your house. Never mess with money when matters of the heart are concerned.

Nine_Lives

How come we've 2 threads on the go?

& why can't people just reply all in the same thread?

New_to_Avon

K_P83 wrote: »

How come we've 2 threads on the go?

& why can't people just reply all in the same thread?

That was my fault, I hit the back button on the browser and I don't know how to delete or merge the threads - can you do this?

custardy

New_to_Avon wrote: »

Sorry, I don't quite understand what you mean, can you explain it a bit more?

To explain a bit more, I agreed that I wouldn't sell until the house recouped all the money invested in it, didn't know the market would crash two months after buying it! I agreed to split any profit with my parents. MY bf will not be a part owner in any way, I want to keep it as simple as possible!

right so he isnt part owner
so is already paying 'rent' to you @ 50% of the mortgage
he is also paying 50% of the bills
so a good deal for you and him (if it works out,then its a moot point who owns the hous)
however your parents then want him to pay over that to provide income from their investment in your house
Im not really sure how they even think this is fair
if anyone would be payin it would be you(not that imsaying you should be)
my point about selling at a loss ,is that perhaps your parents are trying to mitigate this themselves at your boyfriends expense

corbyboy

Are your parents contributing 15% to the mortgage payments? If not then how can they possibly expect your boyfriend to pay them?

It was generous of them to lend you the money but they have been guaranteed their money back so need to take a step back and let you live your life.

Additionally, if your boyfriend pays 50% of the mortgage for years to come then he will probably be entitled to take a stake in the house. After all, he has paid for it.

New_to_Avon

custardy wrote: »

right so he isnt part owner
so is already paying 'rent' to you @ 50% of the mortgage
he is also paying 50% of the bills
so a good deal for you and him (if it works out,then its a moot point who owns the hous)
however your parents then want him to pay over that to provide income from their investment in your house
Im not really sure how they even think this is fair
if anyone would be payin it would be you(not that imsaying you should be)
my point about selling at a loss ,is that perhaps your parents are trying to mitigate this themselves at your boyfriends expense

Thank you for explaining that, it makes sense. My parents would prefer it if we moved into rented accommodation and rented my house out (making money for me and them) and take my boyfriend out of their financial equation, leaving me rent with him. Trouble is we'll never save any money that way and as my boyfriend says, they're driving me out of my own home.

(BTW, their solicitor advised them that asking for rent was the best option for them!! Not sure I agree with this)