Buying rented home alone but living with girlfriend

Worriedman2016

I currently live with my girlfriend and I'm thinking of buying my rented home.

She has an awful credit rating and almost no money and I have a good credit rating and a big enough deposit for a house.

The landlord wants to sell the house we are currently renting and he says we can have a good price for a quick private sale.

I want my girlfriend to pay me rent when I own the house and to have no rights to the house other than that of a lodger. (I will obviously pay for mortgage, all repairs and upgrades to house)

My questions are:

1 - a)Will my girlfriend have any right to the house if she moves in on day one? I heard she may have to be classed as an occupier if she lives there throughout? will this be different if she moves out temporarily and she moves in on day 2 after I buy the house?

2- a)will her bad credit rating affect my mortgage rates? will this be different if she moves out temporarily and she moves in on day 2 after I buy the house?

3) Also - if I move my girlfriend out until day 2 - should I buy building insurance for when there is a single occupier or multiple occupiers?

Thanks for your help.

G_M

Worriedman2016 wrote: »

(I will obviously pay for mortgage, all repairs and upgrades to house)
That is sensible.

My questions are:

1 - a)Will my girlfriend have any right to the house if she moves in on day one? No I heard she may have to be classed as an occupier if she lives there throughout? Well, yes, she'll be an 'occupier' but in itself that confers no rights will this be different if she moves out temporarily and she moves in on day 2 after I buy the house? No

2- a)will her bad credit rating affect my mortgage rates? No will this be different if she moves out temporarily and she moves in on day 2 after I buy the house? No

3) Also - if I move my girlfriend out until day 2 - should I buy building insurance for when there is a single occupier or multiple occupiers? standard policy

Thanks for your help.

The mortage lender will probobly ask for the names of adults planning to live in the property.

They will probobly require her to sign a disclaimer, such that if they need to repossess she cannot claim rights to the property to hold up the repossession.

See eg:

http://www.fridaysmove.com/conveyancing-explained-occupiers-waiver-form/13333

When it comes to Purchase conveyancing, if you are purchasing a property with mortgage finance and there are adult occupiers (defined as persons of 17 years or more and does include your children) who will be living at the property with you ( including your children if they are over 17), then they will have to sign an Occupancy Form/ Waiver Form in the format supplied by your Lender.
You must inform your proposed lender and your conveyancing solicitor if there will be any adults living in the property are not going to be owners, for example any grown-up children who have not left home. The reason for this is that occupiers of a property may be or become entitled to rights of occupation that could have priority over a mortgage. If an occupier had a right to refuse to leave a property, any mortgage that a lender had on that property would be useless because it would be unsaleable. For this reason, lenders insist that adult occupiers who are not owners of the property sign a Occupancy Form/ Waiver Form consenting to the mortgage and confirming that, if they have any rights in the property, they will not assert those rights against the lender.
We recommend that adult occupiers should seek independent legal advice on this point, especially if they are making a contribution to the purchase price. If Fridaysmove are conducting the conveyancing for your purchase we will not be able to advise the occupiers at the property. We will not be able to draw down on the mortgage advance if the occupiers do not sign the Waiver Form/Occupancy Form

Mojisola

Worriedman2016 wrote: »

I want my girlfriend to pay me rent when I own the house and to have no rights to the house other than that of a lodger.

You can have a lodger who pays you rent or a partner who pays towards the mortgage.

A partner who pays towards the mortgage will build up a beneficial interest in the property.

Pixie5740

She's either your lodger or your girlfriend. (I'll give you a clue, lodgers don't share a bed with their landlords).

Worriedman2016

Wow. I think it's unfair on me if I buy the house and she continues to pay the rent she was paying before but to a different person (me) but gains part ownership of the house.

What if she just pays broadband, gas,elec and council tax but no rent? Will she then start getting ownership rights?

Guest101

Worriedman2016 wrote: »

Wow. I think it's unfair on me if I buy the house and she continues to pay the rent she was paying before but to a different person (me) but gains part ownership of the house.

What if she just pays broadband, gas,elec and council tax but no rent? Will she then start getting ownership rights?

Only half of...

AdrianC

You're not planning on this being a long-term relationship, then?

theartfullodger

Sir! This is Britain, the country of decency, fair play!

I urge you to turn your life around, build a trusting, sharing, life with the woman you love!

(You do love her eh? ......)

Kynthia

If you want someone to pay commercial rates to live in your property then get a lodger. Don't try to profit from your girlfriend and don't have a partner live with you in your home if money is your main concern.

It's not wrong to discuss the situation and make sure both of you are clear with your intentions. If you aren't at the stage of buying together or wanting her to gain rights to your property then fair enough, as long as she's okay with that too. A cohabitation agreement might be a good idea. However it doesn't sound good if you're both paying similar amounts to live in the property but you are the only one building equity and having something to show for it.

G_M

I'm really surprised by some of these responses.

It's not uncommon, or unreasonable, for a boy/girlfriend to move in with their partner, as a 2nd step (after going out for a while).

That may be way before they are committed to each other to the extent of joint ownership, which as we often see here when there's a break-up, is in some ways a bigger commitment than marriage.

And if one of them has invested in their own property, it's not unreasonable to want to protect that until such time as they are both ready to take the relationship to stage 3 (which nowadays might = child, joint property or marriage).

Without knowing the details of the OPs relationship it's unfair to judge. He asked a sensible question about the law rather than take a major step without considering the implications.

Hopefully his girlfriend is equally sensible and understands what she is doing. But she, likewise, is taking a step which may, or may not, later lead to a further step.

FBaby

I agree G_M but in this instance, they already are living together, and the property in question wasn't bought before.

There is a difference between buying a property on your own because your partner has a bad credit history but accepting that their payment towards the property is payment towards the mortgage and buying a property but expecting your partner to pay and consider it rent.

In the end, what is right is what the individuals agree and are happy with, so if his girlfriend has no issue with this proposal, then fine (I personally would tell my daughter to get out, sort her debts and then get her own investment!).