Implications of "rent" from partner

Soundgirlrocks

OP there is a lot of scaremongering that goes on around beneficial interest.

Fundamentally its designed to give some protection the non-owning cohabitant (often where people get this common law wife / husband idea from).

In reality it is quite a complex bit of law and while worth understanding its not something to be over worried about IMH.

There are 3 types of beneficial interest

• an express declaration of interests - as it sound there is written agreement
• a resulting or implied trust - the one people get in a flap about, can be mitigated against by a written cohabitation agreement
• a constructive trust - common intention that the non-owner would gain a beneficial interest in the property, again can be mitigated against by a written cohabitation agreement.

You can find out more here - http://england.shelter.org.uk/__data/assets/pdf_file/0019/23473/Relationship20breakdown20EW3202D20Cohabiting20couples202D20sole20legal20owner.pdf

I think the saving idea is a good one personally, but ultimately do what works for you and your partner. I would have a cohabitation agreement as its fundamentally a good thing everyone knows where they stand, and you have conversations that might otherwise pushed to one side.

Kynthia

Yes, there's lots of scaremongering about beneficial interest. She could only get it if she took you to court and had enough evidence to convince a judge the various requirements were met. It's highly unusual and usually requires the non-owner to have been contributing to the mortgage with a belief they would be building an interest in the property.

Your girlfriend will be part of your household and the money she gives you will be considered a contribution to the household and not 'income'. So there's no need to declare it to anyone or pay tax on it. You don't have a business relationship the taxman should be involved in.

Whether £750 Is a fair amount to pay when she's not building any equity in the property and you are is for the both of you too decide. You don't want to profit at her expense and you don't want her to be paying a pittance while you're paying a fortune. I'd suggest an amount that's lower than what she's paying now but more than covers the additional costs you'll incur from her living there, that way you're both better off than now. However as long as you both discuss it and agree then its completely up to the two of you.

Mr.Everready

Sorry to go off course slightly....but those who say she may gain from a benificial interest, if he was taking in a mate who paid him £750pm over 5 years would the mate be due anything when he moves out ? ?


I wouldn't have thought so but.....

Comms69

Mr.Everready wrote: »

Sorry to go off course slightly....but those who say she may gain from a benificial interest, if he was taking in a mate who paid him £750pm over 5 years would the mate be due anything when he moves out ? ?


I wouldn't have thought so but.....

That would be a lodger and the OP would pay tax on that income (as it would be over the rent a room allowance)


Whilst not guaranteed, the OP wouldn't be sleeping with their mate / living as one household.

Mojisola

Mr.Everready wrote: »

Sorry to go off course slightly....but those who say she may gain from a benificial interest, if he was taking in a mate who paid him £750pm over 5 years would the mate be due anything when he moves out ? ?


I wouldn't have thought so but.....

No, friends (and lodgers) are treated differently to a BF/GF.

Mojisola

Soundgirlrocks wrote: »

I would have a cohabitation agreement as its fundamentally a good thing everyone knows where they stand, and you have conversations that might otherwise pushed to one side.

This is good advice.

Another good thing is to agree to speak up about any issues sooner rather than later - don't wait until one of you is at breaking point to discuss the fact the 'you doing that' drives them crazy!

Marvel1

Mr.Everready wrote: »

Sorry to go off course slightly....but those who say she may gain from a benificial interest, if he was taking in a mate who paid him £750pm over 5 years would the mate be due anything when he moves out ? ?


I wouldn't have thought so but.....

Are they sharing the same bed?

Mr.Everready

Marvel1 wrote: »

Are they sharing the same bed?

Possibly only at weekends


In this instance, although it's a partner they're treating it like she's a lodger and possibly paying over the odds for the privilege.



So basically it boils down to whether the person paying is a partner or not.

MarmaladeMamma

I'm so glad this topic has come up! I never know what to search to find this type of discussion and wanted to post a simliar situation. Our situation is I have kids, no savings as in a DRO till mid 19. My partner (father of my youngest) has a decent wage and is saving to buy a house (for us all as a family). As I can't be part of the mortgage we are trying to work out how fairly we should contribute to the new house when it happens. I would want to pay my way but earing 1/4 of the money he does it wouldn't be fair to pay equally, and also I wouldn't want to pay a mortgage that will never benefit me. So far we are talking of he paying the mortgage and half of the bills and I pay my half of the bills and save my 'running away money' as a plan B if things don't work out.
I'm glad to read this seems like a common deal in these situations. I wouldn't want half if I hadn't been paying half I'm not unreasonable, and he of course wouldn't want to share what he has solely paid for but it's gets into grey area zone when one partner is paying towards bills. I would expect to be contributing to the shared decorating though so that's another point - I suppose it will be collateral damage if the worst were to happen, c'est la vie.
It's the most unromantic conversations we've ever had as it's basically planning for a break up (which we hope to never happen..) but we both know that's the most logical thing to do.My family thinks it's morbid to discuss future parting ways and think it doesn't bode well for the relationship if you are thinking this way but surely it's not wrong to want to both protect your best interests? Especially when I have children to think of. I initially wanted to have a sum to put toward a deposit so the home still felt shared, and suggested he keep my contribution separate so it wasn't tied up in the property so I could have it back if we were to part. If we never did part it's our savings for when we're older. This was mentioned above too so I think that may be the best solution, but I will keep my money in my own bank . We will probably also have a written contract as this seems the best and most safe way to do have an agreement.
Hopefully more people will add how their situations are panning out too for us who are trying to navigate this often sensitive subject. I wonder why discussing money is so awkward - but it is!

Honeylife

Mr.Everready wrote: »

Sorry to go off course slightly....but those who say she may gain from a benificial interest, if he was taking in a mate who paid him £750pm over 5 years would the mate be due anything when he moves out ? ?


I wouldn't have thought so but.....

I think the 'mate' would be a lodger.