Implications of "rent" from partner

DoctorStrange

Hi.

My girlfriend wants to move in with me and we've been discussing bills etc. The mortgage is in my name only and I used my life savings to put down a 50% deposit.

I earn more than her and didn't want a 50/50 split as I felt that'd be unfair, but she wants to "pay her way" (her words, not mine) and so I suggested she keep her current outgoings the same i.e. pay me what she currently pays her flatmate, which is £750 a month which includes all bills and food.

I have two questions on this:

1) Do I need to declare this as "income" for tax purposes?

2) if the worst was to happen and we seperate, does she have any claim to the property? If so, is the claim to the 50% which is mortgaged or the whole amount?

Thanks

Marvel1

£750 sounds very over the top for bills and food.

Comms69

No need to declare.

She will possibly gain an interest in your property

onomatopoeia99

Marvel1 wrote: »

£750 sounds very over the top for bills and food.

But not if rent is included.

The OP has not made any mention of a shared understanding that a beneficial interest will be created by the paying of rent, so doesn't seem to be any reason for her not to pay it.

Comms69

onomatopoeia99 wrote: »

But not if rent is included.

The OP has not made any mention of a shared understanding that a beneficial interest will be created by the paying of rent, so doesn't seem to be any reason for her not to pay it.

I get bored of reading this; it's not that simple. A court may decide that an interest is still created

getmore4less

Keep it very simple

Get her to just contribute to the running costs of living in the place at what ever ratio you want.

Think like you were renting a place as a house share just those costs.

Everything to do with the buying you keep paying, mortgage renovations, building insurance etc.

All the things a landlord would cover.

She can save the difference and either walk away with her cash or buy in properly once you are both happy it will work.

PasturesNew

Here's an alternative. Get her to open a new savings account in her name. Each month she has to transfer money into that account ... and you check it.... never to remove a penny. Not one penny.

If she wants to leave you, that's her "leaving fund".
If it all works out then that money becomes her cash injection into the relationship/house/whatever.

So many people go into something, then don't have any "running away money", so end up staying ... and being nasty .... then wanting "half the house, I paid rent"

System

Yes, unfortunately OP your girlfriend will most probably be seen as an interest as soon as she moves in by most courts (should it ever get that far). There has been some good advice on keeping things separate, however the moment she contributes to living costs, the moment she really has some of a claim on getting that back out of the house later. What you could do is suggest she takes on some of the bills - water, gas and electric etc. in lieu if you want to protect yourself.



I will add that there is some difficulty in approaching this, I've seen it before and I'll no doubt see it again...you are building equity, with your name on the mortgage...you are fine and secure. She on the other hand, has nothing other than your word, no house, no equity it's a s**t position to be in, particularly as the relationship goes on. I've seen a couple recently split after many years in this very position, to say it had an influence on the decision would be a understatement.

RockOnZombies

This is what I'm doing with my other half whose just moved in if it helps.

We've taken the view that the house is mine so she will not pay towards house stuff i.e. mortgage, repairs, insurances etc, but we're splitting the other running costs such as food, council tax, utilities, netflix etc. right down the middle.

Mojisola

getmore4less wrote: »

Get her to just contribute to the running costs of living in the place at what ever ratio you want.

Everything to do with the buying you keep paying, mortgage renovations, building insurance etc.

She can save the difference and either walk away with her cash or buy in properly once you are both happy it will work.

PasturesNew wrote: »

If she wants to leave you, that's her "leaving fund".

If it all works out then that money becomes her cash injection into the relationship/house/whatever.

These posts are good advice.

Your GF will be in a very vulnerable situation when she moves into your house - she won't even have the meagre protection that a lodger has - she could be made to leave at a moment's notice.

By saving her share of the mortgage payments into an account, she will have the financial security if the worst happens.

-taff

Yes, she may possibly gain a beneficial interest but in reality, that can cost thousands to establish and win in court, so unless you're going to be together forever, I wouldn't worry about it.
If you're still together in a few years, and buy somewhere together, your equity can be protected by a declaration of trust.