How much to charge my lodger (boyfriend)?

Mojisola

Puddylove wrote: »

I'm thinking of buying a house and having my partner move in with me. He has his own house which he rents out.

I'd expect him to pay half of all the utilities, half the council tax and half my mortgage as 'rent'.

That's the only fair way.

It also opens the door to him able to claim a percentage of the value of your house if you break up.

National_Debtline

Hi Louby40,


From what you have described I would say that there are 3 ways that you can approach this. A purely practical exercise and checking what the lodger rates are locally and charging something similar. And/or consider using the rent a room scheme (which allows you to earn £7500pa tax free) and then potentially getting some legal advice and a tenancy drafted to protect the property. Does he have any debts that are contributing to your concern?

Alternatively, you can deal with this as a couple, and have a chat about what you both feel is fair - whether that is a 1/4 or a 1/2 (or something else) is up to you both - there are no rules with this. Or, finally, you could use a combination of these 2 ideas. Perhaps do some research first so you can have a constructive chat. Do an SOA for what it cost you to live alone and estimate what expenses will change by him moving in. And it may still be worth considering some legal advice about whether or not you need anything in writing about him accruing an interest in the house through contributions. I hope that helps,


Laura
@natdebtline

louby40

Thanks for your suggestions. Having looked at my finances and dividing things into 1/4 (but council tax in half) the bills come to about £165. He has no debts.

It's a discussion we now need to have.

Mojisola

National_Debtline wrote: »

And/or consider using the rent a room scheme (which allows you to earn £7500pa tax free) and then potentially getting some legal advice and a tenancy drafted to protect the property.

I always assume that your advice is right but I'm not sure about this.

AIUI, a partner cannot be a 'lodger' and have a tenancy agreement.

Alex1985

tori.k wrote: »

Make sure you get something in writing, as it could potentially open a can of worms as he is contributing towards the mortgage.

Yes, but his claim would be limited to the contribution made towards the property's equity which seems only fair. Formal legal advice at this stage can save a huge mess (and expense) later...