I've got a mortgage. When my partner moves in, should she pay?

marich

The OP should not be invited to pay a share of the mortgage (trouble) .
Rent would have to be declared for tax .
Perhaps you should consider the tax-free 'rent-a-room' scheme which allows you to charge an all-in £4250 p.a. for exclusive use of a room and shared facilities (no bills) , That'll work out to a tax-free , no-rights £350-ish per month . If that suits you then fine , otherwise beware .

Blowie123

My partner moved into my house 20 years ago we decided from the outset that he would pay me a weekly amount. I have paid all the bills and upkeep of the property which was mortgage free when he came. We have had separate bank accounts, savings etc. but he has turned into a real meanie with a very large amount of money saved and in 20 years all he has bought is a TV.!!!!!. I have been telling him for 12 months it is time I had a rise in his payment as he has paid the same amount for the past 4 years, but he's refusing. What would anyone advise please

SafeAsHouses_2

The above is very helpful and useful but what about two people planning to buy a house together both first-time buyers non-married with unequal deposits?

Say one person has £30,000 deposit and the other £10,000. My instinct is to suggest that we pay half of the mortgage and the bills each and then any growth (or decline) in the value of the property is split 50/50.

So for example we buy a £200,000 house with a £40,000 deposit. Should we split up, then if the house is worth £220,000 at sale then one share would be worth £30,000 deposit + half of the growth (£10,000) so £40,000. And the other share would be worth £10,000 deposit + half of the growth (£10,000) so £20,000.

Even while writing this I'm thinking that the growth should be split in the same proportions of which the deposit was made?

Any fairer suggestions or experienced people wanna comment?



*Sorry if this belongs on another thread and this gets the forum police out.

legalfreak22

ilikeunicorns wrote: »

My boyfriend owns (with a mortgage) the flat that we live in. The mortgage is solely in his name however we picked the flat/decor/furniture etc together. We were ready to live together but he was in a situation to buy and I wasn't, as well as us not being ready to tie ourselves together financially and he wqs unwill to "waste" money renting for a year.

Our arrangement is that I give him a set amount every month (£300) which covers half the bills/utilities and a small amount extra.

I was not comfortable with contributing towards a mortage which was not mine with no real security, he could essentially put me on the street tonight if he wanted too.

The money I save by not renting goes into savings, which is my fall back if he decides he wants rid of me (hopefully not!) Or will go towards a mortage in both of our names in a couple of years time.

He has always been very much like it is "our flat" and "our home" and everything in it is "ours" but I stl always have in the back of my mind that really its his and I have no real security or control which isn't the nicest feeling but it is what it is!

You are right in that you wouldn't have the same security that you would if you were a joint owner. But paying towards the mortgage, as others have said, may give you a right towards the property in what is called Equity. It all depends on the circumstances and the facts of each case. That is why a legal agreement is probably best, even if someone is paying towards upkeep or bills or just interest not capital etc.

carras

In 1981 I had a shiny new mortgage 250 miles from my family which was fine, although living was tight. The next year my brother lost his job and was forced to relocate. It just happens that the best offer was just 10 miles from me so be became a temporary lodger paying 50% of household running costs.

25 years later it seems that legally because my 'lodger' paid into the account which also paid the mortgage be is a beneficial owner of my house.

I would be VERY cautious about shared mortgage implications! You have no idea what laws will change during the mortgage life time.

JenTen

I’m in a slightly similar situation, except not only will my boyfriend be moving in with me, but I’m also hoping to get lodgers to cover the mortgage.

I’m currently living with my parents and saving up for a mortgage deposit with the intention of buying in June. My boyfriend is going to be moving in with me, but as he is a student and will not be graduating until the summer I’m not expecting him to help pay the mortgage – it’s too early in our relationship for such a big commitment anyway.

I’d rather him save up to pay off his overdraft so that we can then start saving up for a nicer home together in the future.

I’m hoping to get a couple of lodgers to move in to the spare rooms to pay the mortgage and bills, and have said that I don’t want more than £200 a month off my boyfriend as the lodgers will be covering the expenses anyway. He said he’s happy to pay more though but I would feel as though I was making money off him as the money I’ll be getting off him will essentially be extra cash that I’ll just put in an account and use for maintenance and hopefully save the rest up (I suspect I won’t have much left over from the rent I get off the lodgers)

I considered asking him to pay me £100 a month in cash towards bills and then maybe a £100 Sainsburys voucher each month for food so that it’s clear what that money is for, but that seems all very unromantic and a bit daft.

ButterflyLC

In my eyes, the fairest thing to do is get a joint account or an account specifically for household expenses and split everything down the middle. I will never understand couples that each pay a bill each, i.e you pay the council tax and I'll pay Sky and utilities.

But really depends on you. If you are sole payer of the mortgage and don't want contributions, you are saying this is my house and you are merely renting space from me. However if you split up and theres a claim to who gets the house, your partner contributing anything to living expenses gives them a claim. Money is a hard topic, best to sit down and discuss with your partner.

Katrin

This does need to be discussed before you move in together. Even, if she pays rent she won't have a legal right to the house if the deeds are in your name only. Read the small print of your mortgage papers. You probably must tell your mortgage provider about her moving in and she'll have to sign a legal document that she has no right to the house. That will come up at the latest when you change your mortgage.

My boyfriend had a mortgage and earned a lot more than I at the time. When I moved in we agreed a monthly sum that was my contribution to the household expenditure (excluding groceries). I paid 50% of the council tax on top. He is now mortgage free and I actually earn more than he does and we just split all the bills 50/50. The house is in his name only and he has always paid for any repairs and maintenance.

We are planning to move soon and the new house will be in both our names. But this is more for inheritance tax reasons than anything else.

suchgreatheights

Assuming you are both on similar incomes, it's probably fair that household bills are split 50/50.

I also think it is fair that some form of rent is paid on top of this. As a homeowner you are taking all of the risk and people don't generally expect to live rent free.

The scaremongering of someone being able to claim half the value of a property if they've lived in it with you is pretty much nonsense, but I would make it clear than any payments are considered rent and that no share in the ownership of the property is implied.

Like all these things, best to have an honest up-front conversation at the outset.

getmore4less

SafeAsHouses wrote: »

The above is very helpful and useful but what about two people planning to buy a house together both first-time buyers non-married with unequal deposits?

Say one person has £30,000 deposit and the other £10,000. My instinct is to suggest that we pay half of the mortgage and the bills each and then any growth (or decline) in the value of the property is split 50/50.

So for example we buy a £200,000 house with a £40,000 deposit. Should we split up, then if the house is worth £220,000 at sale then one share would be worth £30,000 deposit + half of the growth (£10,000) so £40,000. And the other share would be worth £10,000 deposit + half of the growth (£10,000) so £20,000.

Even while writing this I'm thinking that the growth should be split in the same proportions of which the deposit was made?

Any fairer suggestions or experienced people wanna comment?



*Sorry if this belongs on another thread and this gets the forum police out.

Do it with proper equity shares plenty of threads on how to do it.

The get you deposits back is just an interest free loan between you.