How much rent for bro and wife?

pollyanna24

I'm in the process of buying out my brother of our house that we own together.

He doesn't want to buy a hse for a few months for various reasons.

After splitting mortgage and bills 50:50, now we will be in the position of me owning the hse (he will have what I paid him for his equity in the bank).

How do I decide what to charge until he moves out? Just 2/3 bills and/or rent as well?

Part of me is thinking, well I'll have the same bills anyway, so why charge, but another part of me thinks why should he live for free in my house? Plus, my mortgage will sky rocket due to the money I'm paying to buy him out.

My eldest daughter will be going in his room, so that is something we have to delay till he and his wife find their ideal home to buy.

It's a 3 bed hse and there is me, my two daughters (who currently share the box room) and my bro and his very soon to be wife living there at mo.

Red-Squirrel_2

If I'm not getting mixed up, are you the poster whose brother helped you out in a big way by taking on half the mortgage so you could stay in the house at all?

If so, then I'd say if you need money from them to pay the bills/mortgage then have a conversation with them about it. If you don't, and its just a few months until they'll be gone, maybe consider it repaying the favour just to split the bills and not charge rent? After all, it might help them leave faster! (Although I don't understand why they'd pay 2/3)

Edit: I've just read in your MFW thread that he's accepting 16K less than he's owed for his half of the equity. You've got a generous, lovely sounding brother and sister-in-law there, definitely don't charge them rent!

NICHOLAS_2

According to one of your other threads he's let you off 16k of the equity.

I'm all for money saving, but i draw the line at being a penny pincher and shafting people

:eek:

Would you run into a busy road to pick up 5 pence? If yes, charge him £1000 a month, if no, don't charge him anything. :D:D:rotfl::rotfl:

pollyanna24

Red-Squirrel wrote: »

If I'm not getting mixed up, are you the poster whose brother helped you out in a big way by taking on half the mortgage so you could stay in the house at all?

If so, then I'd say if you need money from them to pay the bills/mortgage then have a conversation with them about it. If you don't, and its just a few months until they'll be gone, maybe consider it repaying the favour just to split the bills and not charge rent? After all, it might help them leave faster! (Although I don't understand why they'd pay 2/3)

I am indeed the same poster.

And I have tried to put all the details down this time.

I don't 'need' the money as I will have to pay all bills by myself when they move out, but it's swings and roundabouts as I have wanted to buy him out for ages, but they have delayed for various reasons, ie wanting the wedding out the way, the fianc!e can't sell her flat till fixed rate is up.

I thought 2/3 as there are three adults who work, so they should pay 2/3. i didn't think this is too unreasonable as even though there are two small girls there, in effect it will be my house completely in my name and they will still b saving money while they "take their time" looking for the perfect house. As renting anything in my area will cost a fortune.

pollyanna24

NICHOLAS wrote: »

According to one of your other threads he's let you off 16k of the equity.

I'm all for money saving, but i draw the line at being a penny pincher and shafting people

:eek:

Would you run into a busy road to pick up 5 pence? If yes, charge him £1000 a month, if no, don't charge him anything. :D:D:rotfl::rotfl:

It turns out it's not quite that much as the hse is in 'bad condition' and needs work doing to it.

I have had to live with said brother and wife to be instead of me just buying them out as they don't want to/can't sell her property till its out of fixed rate.

pollyanna24

But, okay to help them before their buy their house outright, am I being unreasonable to expect them to pay towards bills or should they not pay anything?

Red-Squirrel_2

pollyanna24 wrote: »

I am indeed the same poster.

And I have tried to put all the details down this time.

I don't 'need' the money as I will have to pay all bills by myself when they move out, but it's swings and roundabouts as I have wanted to buy him out for ages, but they have delayed for various reasons, ie wanting the wedding out the way, the fianc!e can't sell her flat till fixed rate is up.

I thought 2/3 as there are three adults who work, so they should pay 2/3. i didn't think this is too unreasonable as even though there are two small girls there, in effect it will be my house completely in my name and they will still b saving money while they "take their time" looking for the perfect house. As renting anything in my area will cost a fortune.

Its only your house though because your brother stepped in and made that happen! Not many siblings would tie themselves down and take a risk like that.

I'm sensing that you're just completely fed up of sharing what you've always though of as 'yours', but please remember what a fantastic thing your brother has done for you and don't be petty on the final stretch. Its not long now, just hang in there!

pollyanna24

Red-Squirrel wrote: »

Its only your house though because your brother stepped in and made that happen! Not many siblings would tie themselves down and take a risk like that.

I'm sensing that you're just completely fed up of sharing what you've always though of as 'yours', but please remember what a fantastic thing your brother has done for you and don't be petty on the final stretch. Its not long now, just hang in there!

True and I do think I was picked on in my original thread, but I guess people do not see the dynamics of our family etc. with hindsight, my dad does just wish that he somehow just lent me the £20.000 that my bro paid my ex.

It's not just me who got a good deal out of it (ie not losing the house over me and my two kids heads), but now my brother is in a position to buy outright out of how much the house has gone up in value in four years. Everyone just seems to focus on how much he has done for me.

Red-Squirrel_2

Yes, your brother has done well from his investment, but 4 years ago property markets were still very up in the air, it was a risk and there was no guarantee he'd make money, or that you'd be able to buy him out so soon.

I'm sorry you feel picked on, but it sounds like you have a good relationship that's just on the brink of turning a bit sour due to too much proximity and too much involvement of money. Surely it'd be better to grit your teeth for a bit rather than risk a big bust up at this late stage in the game?

(I do think it fine for them to pay 2/5 of the bills of course, I just wouldn't go as far as rent)

Dird

I've just read the "Brother's Girlfriend Moving In" thread and you seem to still be having the same resentful feelings 1 year later.

Your mortgage payments will "rocket" but it will be as high if he left right now. The rest of the bills are unchanged from 1 year ago.
Mortgage: 100% you
The rest: 50:50 as before (it is still 1+0.5+0.5 vs 1+1 people as 1 year ago)

He's not living free of charge, he's paying 50% of the living costs (excluding the mortgage).
Them staying for a couple extra months is actually a benefit to you as it allows a transition period from paying everything 50:50 to paying everything by yourself.

Pixie5740

pollyanna24 wrote: »

But, okay to help them before their buy their house outright, am I being unreasonable to expect them to pay towards bills or should they not pay anything?

Yes you are being unreasonable after your brother has helped you out so much and expecting them to pay 2/3 of the bills is just outrageous.