mortgage and co-habitation

Worry_Wart

Hello, I'm in the process of buying a house, and could do with some moral and legal guidance.

I currently live with my boyfriend of two years in rental accommodation. I earn a good bit more than him, and so I'm buying the house myself, as I've saved the deposit, paying the legal fees, and it will only be my name on the deeds. He will be listed as an occupying adult.

We've not been together that long on the grand scheme of things, and even though it's going well, I want to protect my interests without screwing him over. I don't want him to live rent free, as I don't think that's fair. Equally he has made some disgruntled mutterings about contributing to my mortgage. I've been mulling over the options and thought we could draw up an agreement whereby we both split bills 50/50 (amounting to about £150 each), and then I thought he could open an locked down ISA in his name, and put £200/month into it. If after 3-5 years we are still together, the money accrued could be put to use on the house (I quite fancy a loft conversion), and we would formally acknowledge his input into the equity of the house. If we split up during this time, he takes the money and he has had no formal contribution to the property equity and no right to contest my full ownership (and has also had a good few years of very low rent).

Does this sound like a sensible path to take? We have no plans to have children so that shouldn't complicate matters.

Thanks!

hazyjo

It's generally advised that he pays half the bills - and not half, or anything towards the mortgage or any major works to the property.

What he does with the rest of his dosh should really be up to him... you'll be benefitting too from having him pay half of everything.

Really only £150 per month for half of ALL bills?! That seems low to me.

He could always pay for your holidays together or something.

I know you want to 'protect' yourself, but it does all sound a bit over-formal to me (and I've been divorced twice and am very careful). BF currently lives with me and pays naff all as he's not working - but he does everything indoors so I don't have to lift a finger.

If you do want to part own a property with him, maybe just tell him that you'll consider moving and buying with him in say five years if you're still together and if the market allows...

Jx

Worry_Wart

Bills are (per month): water - 20, c/tax - 120, cleaner - 50, tv license - 13, gas/elec - 80, broadband - 40, total £323, so yeah not far off £150. Obviously food is on top of that but I usually buy the majority of that as I drive so do most of the shopping. My mortgage will be £700/month, plus building and contents insurance.

I do all the cooking and we share the cleaning and DIY. That's unlikely to change in any way.

I really don't feel generous enough to let him live there for £150/month when I'll be paying £900/month plus all repairs/renovation etc to the house. He is used to paying £400/month in our rental.

Errata

Equally he has made some disgruntled mutterings about contributing to my mortgage

Cheeky sod. If he's disgruntled now he'll be a PITA to live with.

BitterAndTwisted

If you don't want this partner to successfully make a claim on any future equity in a later split then you MUST NOT accept a single penny from him which could be construed as mortgage contributions/rent. And that includes contributions towards any repairs or improvements to the property, buying you a car or paying for holidays in lieu.

Half of utility bills: OK.
Half of Council Tax: OK.
Half of grocery-shopping: OK.

NOTHING ELSE!

You could suggest that he salts away an equivalent sum into a savings account in his sole name which could form part of his deposit should you decide to apply for a joint-mortgage at a later date but you cannot control whether he saves any money or not nor be in control of it.

duchy

Bills should also include food -why should you pay to feed another earning adult -you wouldn't do it in a flatshare , if you share a car -those expenses should count as a joint "bill". You could also set up a holiday fund where you both contribute an equal set amount each month and call that a "bill" too. Basically anything you jointly consume are bills...... even a Christmas/Birthdays savings pot. There is quite a lot that would keep it seperate from the homebuying element but still a proper contribution.

Dan-Dan

Worry_Wart wrote: »

I really don't feel generous enough to let him live there for £150/month when I'll be paying £900/month plus all repairs/renovation etc to the house. He is used to paying £400/month in our rental.

Ahh , true love

Pixie5740

B&T beat me to it

If your partner contributes towards the mortgage repayments and then you split up at some point in the future he could claim to have "beneficial interest" in the property. The CAB website has some information about it on this page:

http://www.adviceguide.org.uk/england/relationships_e/relationships_living_together_marriage_and_civil_partnership_e/living_together_and_marriage_legal_differences.htm#h_housing

EDIT: Just for a personal point of view, if after living with someone for 2 years you still don't know whether you want to throw your lots in with theirs should you be together?

BitterAndTwisted

Worry_Wart wrote: »

My mortgage will be £700/month, plus building and contents insurance.

I really don't feel generous enough to let him live there for £150/month when I'll be paying £900/month plus all repairs/renovation etc to the house. He is used to paying £400/month in our rental.

Sigh. But you'll be getting the benefit of any equity you build up without having to share any of it.

If you want his money then sharing the benefits of home-ownership with him seems only fair.

If you want the income without having to share your equity ditch him and get a lodger!

Mojisola

Worry_Wart wrote: »

I really don't feel generous enough to let him live there for £150/month when I'll be paying £900/month plus all repairs/renovation etc to the house. He is used to paying £400/month in our rental.

Some couples sort this out by the non-householder paying a set amount into a savings account.

If the relationship remains stable, the money is viewed as joint savings.

If the relationship breaks down, the one leaving will have a lump sum to use for the deposit, etc.

If he pays towards the mortgage or improvements in the house he can gain a beneficial interest in the property.

Lots worth reading here -
https://www.advicenow.org.uk/living-together/[url][/url]

Worry_Wart

Okay, thanks for the advice. I think based on your suggestions then I will say we keep track of all household bills excluding anything that goes into upkeep of the house, and split those. I will suggest he opens up a savings account and puts the money he is saving by living with me into that every month, and this can go towards a future deposit, should he wish. Whether he does that or not is anybody's guess.

I think I'll get a lodger to contribute towards my monthly expenditures as I need to put some money away each month and it will be too difficult if I am paying £900/month (even before interest rates go up).