Partner moving into my house

tia86

Hi all

I expect this has been asked before but having searched I couldn't find anything.
My boyfriend is going to be moving into my house which has a mortgage in my name. I want it to stay this way, however I will expect him to contribute to the costs of living here.
Is there anything I need to be aware of legally e.g. should I be looking at him being a tenant? What about in the worse case scenario?

Thanks

dimbo61

As you live in the property he would not be a tenant only a lodger.
You could/should charge him rent. Under the rent a room scheme you can charge £4250 a year tax free.

tia86

Thanks for this. Does it need to be declared to anyone?

tim123456789

dimbo61 wrote: »

As you live in the property he would not be a tenant only a lodger.
You could/should charge him rent. Under the rent a room scheme you can charge £4250 a year tax free.

Oh yeah, great way to seal a lasting relationship, where do I sign!

tim

zzzLazyDaisy

dimbo61 wrote: »

As you live in the property he would not be a tenant only a lodger.
You could/should charge him rent. Under the rent a room scheme you can charge £4250 a year tax free.

This is bad advice. He will not be a lodger and presumably will not be renting a separate room!

OP have a look at this article which outlines the rights of a cohabiting partner moving into your home (this assumes you live in England, the law is different in Scotland)

http://england.shelter.org.uk/get_advice/families_and_relationships/relationship_breakdown/options_for_homeowners/cohabiting_couples

Essentially, in order to avoid him obtaining a beneficial interest in your property, you should ensure that you remain solely responsible for the mortgage, and also that he does not contribute financially to any major structural works which may add value to the house.

Provided he sticks to contributing towards utilities, food, and removable items such as furniture, electrical goods etc, he will not gain any interest in your property.

You can have a 'cohabitation agreement' drawn up if you wish to formalise the situation

G_M

tim123456789 wrote: »

Oh yeah, great way to seal a lasting relationship, where do I sign!

tim

As one sarcy to another.. this was unecessary. The OP is asking a sensible question. Just because boyfriend is moving in does not mean they are ready for permenant commitment. It's sensible to consider all possible futures....

OP, re tax:

Rent a Room Scheme (Government scheme for tax-free income from lodgers)

The important thing is not to have boyfriend make mortgage payments, or significant property improvements (eg pay to fix the roof, build an extension, or even do major re-decorating. This could provide a tenuous claim on the property.

But contributing to weekly costs (food, loo rolls etc) and rent as a lodger (see links above and below) is fine. There is no requirement for any written agreement, but with lodgers it is sensible to have one, to avoid later arguemnts, though in the context of a relationship this migh be a step too far (implying distrust which I take to be tim's point above)!

LodgerLandlord (General information site)

Landlordzone (General advice on taking in lodgers)

Renting out rooms in your home (Government info)

Kynthia

Your partner would be a member of your 'household' and not a lodger. Therefore you don't need to declare any income as you aren't 'providing a service'. They can contribute to the running costs of the property, but if they make contributions to the mortgage then they could possibly argue a 'beneficial interest' in the future. I'm sure this is rare but it is something to be aware of.

I would recomend that every couple moving in together, which either one of them owns or buying, get a cohabitation agreement or a deed of trust. There are potential pitfalls, nightmares when splitting up possessions, misunderstandings about what each are entitled to, etc. At least have a disucssion about what you are both expecting to pay for and who will be entitled to what in the event of a break up.

tia86

Thank you for all the helpful advice. Yes I know it seems like a silly thing to be thinking about but you never know what the future holds. Thank you for all the useful links

zzzLazyDaisy

tia86 wrote: »

Thank you for all the helpful advice. Yes I know it seems like a silly thing to be thinking about but you never know what the future holds. Thank you for all the useful links

I don't think it is a silly thing to be thinking about. You have your own home and this is a new relationship, it is sensible to consider all aspects of the situation before you move in together.

You may also wish to consider making wills and taking out life insurance on both of you.

If (heaven forbid) you were to die, without a will he would not inherit and would be made homeless. Even if you do not want him to inherit the house, you might want to make a provision that he can live there for (say) 6 months after your death.

Similarly, there may come a time when you become dependent on his income (you have a baby or get sick, or he earns a lot more than you). You have no rights against his estate if you are not married so he should also make a will.

The life insurance should name each of you as beneficiaries, so it doesn't pass under the will or intestacy to someone else.

BitterAndTwisted

My advice? DO NOT accept a single penny from your partner that could be construed later as having been making a contribution towards your mortgage-payments or any improvements and/or repairs to the property.

A share of the Council Tax is OK. So is a share of the utility-bills and grocery costs. But you should take great care in not allowing for there to be any possibility that those shares are being paid over to you in lieu of rent/mortgage contributions.

Mojisola

Read through this - https://www.advicenow.org.uk/living-together/ - so you both know the legal situation.