Free rent instead of Child Support

Lunar_Eclipse

No, for several reasons. Some have been covered.

It's not in your ex's best interests for you to have control over the roof over her head, nor for you to benefit from the likely capital gain on the house, which is to be her home. As kind as your intentions might be, I'd never agree to it.

Plus, you're not thinking beyond the immediate future. How would you feel if a new partner moved in with her? Someone you either really didn't like or was seriously bad news for your son? It over complicates matters in my opinion. If she made changes to the house you didn't approve of?

There's loads of options against this seemingly generous plan.

BigAunty

In terms of selling the property when your child reaches adulthood, there will be capital gains tax to pay as you are an owner-occupier, as well as not receiving any income for it and paying for all maintenance expenses.

The HMRC website (or housing forum members) will be able to give you an indication how much of any equity due to price inflation you will lose to the tax man. You add this figure to the estimated maintenance costs for the period in which your ex and child occupies it to get an overall idea of possible outlay versus no income received in the period.

BigAunty

If your wife is reluctant to move out when you decide to sell in X period of time, having enjoy rent free accommodation of a high standard at no expense, then you have to be prepared for a relationship breakdown which sees you as some kind of mercenary figure who has put profit over taking care of his family. Not everyone's child moves out of the family home when they are 18.

Your generosity has the risk of backfiring when you are seen to make them homeless so you can realise your investment. However, I do actually think your plans indicate kindness, thoughtfulness and support on your part. Just that its mixing business with the personal, so relationship problems can become tenant/landlord problems and tenant/landlord problems cause personal problems.

paddedjohn

shoe*diva79 wrote: »

She can not claim housing benefit when renting from the father of her child/ex partner

Read my post again, that's what I'm saying. His ex will be worse off.

Homeownertobe

Or she could use the maintenance to pay for her own house and not become homeless the minute her son turns 18. I'm shocked that you want to make a profit out of your legal obligation to pay for your child.

Jagraf

No all the way. If you want a roof over your child's head just pay more maintenance if you can afford it. My ex helped me out until he met his new girlfriend and then it just stopped. When he had a child with her the maintenance reduced and when he moved away his visits became less to non existent.

I'm not saying this will happen but things can and do change. You need to have things clear cut now so that you can both get on with your lives. The less entangled you are the less you have to fall out about.

Guest101

BigAunty wrote: »

You are about to swan off to a solicitor to see if you can establish a legal contract that gives her rent free accommodation in lieu of child maintenance.

You do not seem to have given a moment's thought to the implications of having a commercial relationship with her, the risks and issues that come from having a contractual agreement as landlord/tenant, all the problems that come from tenancy related matters that can affect the personal relationship. - In this case I don't see the relevance.

What if you lose your job and can't keep up mortgage payments? - Well then house gets repossessed? He would owe no Child Maintenance if he had no income, so same thing. She doesn't qualify for HB so how does the mortgage and repairs get paid? That is no different to any private landlord. She gets annoyed because a boiler repair takes so long - you could get it in the neck. - Just like any LL and tenant. Her neighbours report her to the council for being noisy - what are you going or able to do? - Nothing. A LL is not obliged to act on neighbour complaints. If I was a LL and received a complaint from a neighbour, I would tell them to take a long walk off a short cliff.

As a lone parent, assuming she has a low income, she may quality for full or nearly full HB on a 2 bedroom property in the rental sector with an independent landlord. - 'independant', love it. Assuming the OP does not lose his job, he will no doubt make sure the property is always up to date. Whereas a private LL has no such moral obligations (nor legal) See the Local Council website for LHA rates. Your child maintenance of £90 does not affect her income related benefits like HB, council tax reduction, child tax credits, child benefit (nor Working Tax Credits if she qualifies for this).

So she may actually be better off by up to £90 a week if she gets HB on another property and CM from you. - But society would be worse off.... If she does have to pay a top up from her own employment/benefit income (which many HB tenants do) she may feel its worthwhile to be more independent from you.

Another alternative is that you move out of the family home and let her live there until the youngest turns 18. That's quite a common thing established during a formal separation/divorce where there is an occupation order drawn up that gives the parent with care sole occupier status of the former family home.

Are you one of these dad's who are worried that the CM will go on gin and fags? My brother believed his CM would get squandered by his ex spending on herself. He wanted to control her by buying shoes and clothing, school trips to the value owed each month rather than paying cash.

Her debts are her problem, maintenance issues with a future private landlord are her problem, her lack of assets are her problem. You can find a better way to make a return on an investment than a buy to let that you don't charge any rent for.

Her debts and repair issues will affect the child though, despite being 'her problem'

Guest101

I think it's a workable idea, and perfectly legal.


The objections seem to be mainly moral...

Savvy_Sue

Guest101 wrote: »

I think it's a workable idea, and perfectly legal.


The objections seem to be mainly moral...

My concerns are more emotional / logistical.

The OP may be a perfectly rational and reasonable person. Or he may be a control freak like Rob from The Archers. Or most likely somewhere in between. But wherever on that spectrum he lies, I fear it opens several large cans of worms. It forces him to remain more involved in his ex's affairs than is necessarily good for either of them in the long run.

Guest101

Savvy_Sue wrote: »

My concerns are more emotional / logistical.

The OP may be a perfectly rational and reasonable person. Or he may be a control freak like Rob from The Archers. Or most likely somewhere in between. But wherever on that spectrum he lies, I fear it opens several large cans of worms. It forces him to remain more involved in his ex's affairs than is necessarily good for either of them in the long run.

This is the bit I don't understand.


I've rented many times and none of my landlords have ever been 'involved' in my life.


The ex would have full tenants rights, which includes quiet enjoyment. She can refuse him entry full stop.