Should I let my new boyfriend buy a stake in my house?

stripey1969

I'm in the fortunate position of owning about 75% of my house. The rest is mortgaged - I pay about £500 a month. There's still about 24 years left to pay on it (oh joy).

My boyfriend, who moved in 18 months ago (we've been dating for 2 years and have known each other for 3), has recently come into some money and has said he'd like to invest in the house by buying half of it (i.e. by paying off the mortgage and buying another 25% of equity from me).

In some ways this is very attractive - no more mortgage (or mortgage interest!) to pay, and I'd get a lump sum too.

However, it's also risky. My worry is that if we split up at some point in the distant future, and the house has gone up in value significantly in that time, it might become impossible for me to be able to afford to buy the 50% back.

So what do I do? I'm convinced my bf is the one for me and vice versa. This plan of his would enable me to have a large stash of savings AND more disposable income. It also seems unfair to deny him a foot on the housing ladder, or any kind of security in that respect. And yet I've spent a lot of time (and money!) refurbishing the house completely, and would hate to be forced to sell it because I'd been a romantic fool!

Any suggestions and advice gratefully received!

minimoneysaver

No idea, but why not book an appointment with a solicitor to ask for legal advice? With something so important, I'd take opinions here and then seek advice. Good luck.

Tenyearstogo

If he were to propose, would you accept?

If yes, then seriously consider his offer. If no, then don't accept.

You do live together so I can understand that he obviously considers it his home.

You could always invest the money you get from him and the equivalent you pay on the mortgage so that if you did split up you could afford to buy him out and you wouldn't have paid all that mortgage interest.

stripey1969

Yes, I would definitely accept. It wouldn't surprise me if we did get married at some point, and then all this would become moot I realise!

Houses seem to provide a much better rate of return than investments, so I'd be worried about finding some stocks/shares that would keep up with the housing market...

Tenyearstogo

stripey1969 wrote: »

Yes, I would definitely accept. It wouldn't surprise me if we did get married at some point, and then all this would become moot I realise!

Houses seem to provide a much better rate of return than investments, so I'd be worried about finding some stocks/shares that would keep up with the housing market...

Put it in a stocks and shares ISA each year? Or buy a rental property together.

Own_My_Own

stripey1969 wrote: »

Yes, I would definitely accept. It wouldn't surprise me if we did get married at some point, and then all this would become moot I realise!

Houses seem to provide a much better rate of return than investments, so I'd be worried about finding some stocks/shares that would keep up with the housing market...

What are you going to do with the money you would no longer need to pay the mortgage. Have you added that to the £25,000 ?

katieclampet

Unless you were married or had a proper legal document drawn up, never in a million years! If anything goes wrong, without legal protection you could end up seriously out of pocket.

Get proper legal advice and take it from there.

katie

365days

I think buying a rental together is a good idea. Maybe him owning 75% and you chipping in for the remaining 25%.

Then if it all goes horribly wrong (and I hope it doesn't) it will be easier to sort.

If it all goes right......then as a married couple you have a great investment.

double_mummy

but you house could have lost value due to inflation by the time you sell it think about the amount of interest you will be saving

if your not happy with 50% why not sell him the 25% covered by the mortgage then he has a stake in the house you are mortgage free

you both get what you want and its a good compromise then get all the legal documents done up with the option to buy another 25% in 5 or 10 years if you still are not married

Mojisola

If you do go ahead, discuss - and make - wills at the same time.

Unless you're both going to leave your share of the house to each other, the survivor could be faced with selling up straight up after a death or living in a house part owned by someone else.

KnightSmile

why not let him by the 50% as suggested and you can then re-invest the excess into a 1 bed flat to rent out. That way if house prices go up in value, so does your own investment in the flat.