Split of house costs

Problem5

I wonder if someone could help me with the problem below.
Me and my boyfriend currently live in his house. When he bought the house we agreed that I will pay a third of the mortgage and half the bills. At the time I was earning less, so his suggestion seemed wise.
Now 2 years down the line, our salaries are the same. He is also making regular repayments against his mortgage, so after he remortgages in a few months’ time his monthly rate is set to go down.
Therefore the problem arises how much I should pay him in respect of the house, as if I continue paying a third I would effectively take advantage of his repayments. At the same time I do not wish to be taken advantage of, as when the house is fully repaid it will be his.
Another factor to take into account is that I also own a flat, which I let and keep all the proceeds. We decided to stay in his house because it is bigger and better located.
I’ve been thinking about ways to compensate him for living in his house, because he could let it and also keep all the proceeds just like I do now with my flat. Any ideas on a fair way to do this?
Another question is who should pay for refurbishments? So far he repainted the house throughout, repaired the flooring and refurbished the bathroom out of his own pocket. But recently he asked if I would also contribute, because if we replace the windows both of us will take advantage of lower bills. What is the best way to go about this?
Thank you for your help

FBaby

There are no right or wrong way, it was is fair to you depending on how you see your relationship now and in a few years time.

Are you happy with both owning your current properties and not being entitled to the other's if you were to separate? Now? In 10/20 years time? Are you likely to ever marry?

In regards to what you should pay, the fairest way would be to start from the other side and look at how much you both have left after all your bills etc... are paid and then agree your contribution to him so that your disposable income is the same.

In regards to refurbishment, put a figure in the costs 'towards maintenance to both properties' (both of them) and apply the above.

Orlando_Virgin

Sounds to me like you just need to have a chat with your OH. Your financial situation has changed for the better (not the worst position to be in) but sounds like you are benefitting from it more than him at the minute.

Just have a talk about the best way to go about it with your flat/house etc. I'd suggest 50/50 for everything is pretty reasonable.

Georgiegirl256

Both of you are now earning the same salary, so I don't see really why there's any debate about it, costs (mortgage/bills) should now be 50/50 IMO. Unless it's going to leave you struggling at the end of the month. Do you have round about the same disposable income left?

Upkeep of the house is a different matter though, I'm not really sure on that one. It's his house, and unless he's struggling to pay then I think the majority of the cost should come from him. Would he contribute to any repairs needing doing on your house if needs be?

Errata

Point out to him that any cash you cough up for a major refurbishment may open the door to you making a claim on the property when you split up. As he's only your boyfriend splitting up is a possibility.

getmore4less

I think you should separate the living costs from the owning a house costs.

If he want to own the house then it is his responsibility to cover ALL the costs.

Share the living costs, some do 50:50 some do proportional or some other way.

How much to contribute for the occupancy is separate.

One way to split is as if you were renting, you provide around 1/2 a market rent or perhaps a lodger rate.
OH covers the things a landlord would and you share the things you would as a house share.


Contributing to the mortgage, maintenance or improvments gives you a claim on the house.

getmore4less

And don't forget anything you give him to cover his house so mortgage, rent etc he needs to declare as taxable income.

Guest101

getmore4less wrote: »

And don't forget anything you give him to cover his house so mortgage, rent etc he needs to declare as taxable income.

I don't believe this is true. Am open to being corrected, but I believe that a partner cannot be a lodger and this is not considered an income.

Please can you quote the legislation?

getmore4less

Guest101 wrote: »

I don't believe this is true. Am open to being corrected, but I believe that a partner cannot be a lodger and this is not considered an income.

Please can you quote the legislation?

You need to find the legislation that gives partners exemption from the taxes due on income from property.

For example If you look at the rent room scheme then there are no exemptions, last time I looked all income from providing furnished accommodation (or from providing goods and services in connection with that accommodation) comes under the scheme if you want to use it.

No exemptions for partners

The reality is that even sharing the bills could count.

Guest101

getmore4less wrote: »

You need to find the legislation that gives partners exemption from the taxes due on income from property.

For example If you look at the rent room scheme then there are no exemptions, last time I looked all income from providing furnished accommodation (or from providing goods and services in connection with that accommodation) comes under the scheme if you want to use it.

No exemptions for partners

The reality is that even sharing the bills could count.

I'm sorry but you are incorrect.

A partner is not a landlord, evidenced by numerous high profile benefits cheats cases where claimants have made this claim, and the rent a room scheme does not apply. They are living together as a single family unit, and there is no tax to be paid on these contributions.

Unless u can provide clear guidelines or legislation, you are unfortunately incorrect.

Problem5

Errata wrote: »

Point out to him that any cash you cough up for a major refurbishment may open the door to you making a claim on the property when you split up. As he's only your boyfriend splitting up is a possibility.

Apologies, I did not mention it initially, but we signed a living together agreement, which stipulates that neither of us has a claim on each other's property.