Can I let someone input into the bills?

Helendoyle95

Me and my partner bought a place together back in August 2017 we moved in. In February 2018 we have now split up and we’re looking at the options we have for the house. I want to keep the house if I can cause it’s closer to work. Only problem is, I can’t afford the house and bills completely on my own. Am I allowed to let a friend use a spare room and give me some money towards bills without it become a rental agreement? I don’t wanna hide anything from the bank but I want to stay in this house. My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.

Browntoa

Rent a room scheme , no need to tell mortgage company

No tenants rights

Marvel1

Your ex is better coming off the mortgage, otherwise it could last years and gets messy.

McKneff

Or class as a lodger....

00ec25

Helendoyle95 wrote: »

Am I allowed to let a friend use a spare room and give me some money towards bills without it become a rental agreement? I don!!!8217;t wanna hide anything from the bank but I want to stay in this house.

no, you cannot receive money and it not be a rental agreement.

it would however merely be a lodger
- they have few rights
- you can receive up to £7,500 per year tax free

Helendoyle95 wrote: »

I don!!!8217;t wanna hide anything from the bank but I want to stay in this house.

- lenders (your bank?) very rarely ever need to know about you taking a lodger. Read your mortgage terms and conditions since we cannot see them from here, it will be explained what you can and cannot do in there. Whether you choose to not tell them anyway is a different question

Helendoyle95 wrote: »

My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.

that is very naive and likely to lead to problems in the future

- will ex stop paying towards the mortgage? If he keeps paying then he continues to increase his share of the equity.

- what about the share of the equity that has built up so far? Why is he not going to get his fair share of that as well? Why is he being given only his deposit?

- how will you split the costs of selling?

- does ex realise that as long as he stays on the deeds/mortgage for this property he will need to pay higher rate SDLT if he buys a new place to live himself?

AnotherJoe

00ec25 wrote: »

no, you cannot receive money and it not be a rental agreement.

it would however merely be a lodger
- they have few rights
- you can receive up to £7,500 per year tax free


- lenders (your bank?) very rarely ever need to know about you taking a lodger. Read your mortgage terms and conditions since we cannot see them from here, it will be explained what you can and cannot do in there. Whether you choose to not tell them anyway is a different question

that is very naive and likely to lead to problems in the future

- will ex stop paying towards the mortgage? If he keeps paying then he continues to increase his share of the equity.

- what about the share of the equity that has built up so far? Why is he not going to get his fair share of that as well? Why is he being given only his deposit?

- how will you split the costs of selling?

- does ex realise that as long as he stays on the deeds/mortgage for this property he will need to pay higher rate SDLT if he buys a new place to live himself?

Good advice generally but regards "share of equity that has built up" they only bought in August

DigForVictory

Helendoyle95 wrote: »

My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.

This week, yes.
It would be frankly financially dangerous to let that carry on.

Things happen. Life moves on. Suddenly you or he have an opportunity - but the joint mortgage is an anchor. As you are managing to be civilised about bringing the relationship to an end, try to do a complete job & sever the financial ties too.

Mutton_Geoff

Although well advised to take your ex off the mortgage, if you are having to take in a lodger, it is unlikely the bank will accept you as sole mortgagor since you may well fail their affordability tests (salary multiples etc).

Norman_Castle

Helendoyle95 wrote: »

My ex is happy to stay on the mortgage so long as I can give him back his deposit when he leaves.

If you do this keep comprehensive proof of how you've funded the mortgage payment to defend future claims of ownership.

TBagpuss

I stromngly recommenbd that you and your ex have a formal separation agreement drawn up making clear the limits of his interest in the property, and whether by giving him back his deposit you mean a fixed sum or a % of the value of the house based on the % of the purchase price his deposit amounted to. Your agreement should also set out how much notice each of you needs to give to end the agreement, i.e. when he decides he dopes want his name off the mortgage and his money back (you could, for instance, agree that he would not do so until any current fix on your mortgage expires)

The agreement should be drawn up professionally and signed by both of you.

in relation to having someone in, as previous ;posters have said, you will need to check your own mortgage conditions and also your home insurance, but subject to that should be able to take in a lodger. As you will still be living in the house as well, they won't be a tenant, but it would be sensible for you to have a written agreement setting out how much they will pay, how much notice you need to give them if you want them to leave (this can be any 'reasonable' amount of time - 1 -2 weeks is not uncommon for lodgers) and whether they will be paying a deposit.

On a practical level, if you do take in a lodger, don't forget you won't qualify for single person's discount on your council tax.

G_M

LODGERS (Licencees/Excluded Occupiers)
A lodger (broadly) lives in the same property with a resident landlord & shares facilities. Unlike tenants, lodgers have few rights.

The Housing Act 1988 provides definitions of 'Resident Landlord' & 'same property' (S31 & Schedule 1 (10).

See:

LodgerLandlord (21 tips from solicitor Tessa Shepperson + General information site)

Landlordzone (Various articles on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (HMRC guide for tax-free income from lodgers)