Owning house outright before relationship and breakup consequences

Lokolo_2

Hi all,

I would just like to ask something theoretical if I may, I have searched the forums but most of the posts seem to be about buying a house together with a partner or one where mortgage payments are still due when a partner moves in.

I own my house outright, if I were to find a partner and they move in with me, if we were to break up at any point would they be entitled to any part of the house assuming we aren't married?

Is it the same as in other threads where one partner is solely paying the mortgage and the other you can only ask to contribute half towards bills otherwise they can make a claim on the house? Or does the fact the house has no mortgage make any difference in asking partner for a bit more contribution than half the bills?

At the moment this is only theoretical as I am currently single but I am thinking of finding a partner in the near future and wish to protect the money I have worked years to save and put into the house!

Thank you in advance for any advice

Mojisola

Lokolo_2 wrote: »

I own my house outright, if I were to find a partner and they move in with me, if we were to break up at any point would they be entitled to any part of the house assuming we aren't married?

No. Your partner would have no security - you could turn him/her out with no notice - and he/she would have no claim on your house.

If you do any substantial work on the house and your partner contributes towards that, he/she may try to claim some beneficial interest but it would be expensive to do so and they may not win - best to avoid the situation by paying for all maintenance and upkeep yourself.

Lokolo_2

Mojisola wrote: »

No. Your partner would have no security - you could turn him/her out with no notice - and he/she would have no claim on your house.

If you do any substantial work on the house and your partner contributes towards that, he/she may try to claim some beneficial interest but it would be expensive to do so and they may not win - best to avoid the situation by paying for all maintenance and upkeep yourself.

Hi Mojisola,

Thank you very much for your prompt reply and I appreciate the information, that is good to hear that my assets would be protected and I will bear in mind about repairs! Part of me feels sad for having to ask for such information, but from what I've seen on here and what goes on in real life it seems prudent to ask!

Gavin83

Lokolo_2 wrote: »

Or does the fact the house has no mortgage make any difference in asking partner for a bit more contribution than half the bills?

For what?

They'd argue that they were paying towards the upkeep of the house in such a scenario. If you want to be 100% sure they'd have no claim I'd follow the standard advice on here. Get your theoretical partner to put his "rent" into a savings account. If you break up he has a deposit for a new rental property and has no claim on your house. If you stay together and potentially marry you've got a pot of money towards something else in the future.

Seems the fairest result for both parties.

kangoora

Of course, if you should marry and the overall relationship (including marriage) goes past a nominal 5 year point then all assets are 'usually' considered 'marital assets' including pensions, savings etc. Of course, that also applies to whatever your partner brings to the marriage.......

Something to consider given your original question unless you do decide to not get married ever. Marriage does bring into effect certain tax benefits, retirement planning & IHT benefits as well as a wedding ring

[Deleted User]

I can understand wanting to protect your home but to profit from your partner by charging more than half the bills sounds shady. Save yourself the heartache and get a lodger.

Socajam

Lover_of_Lycra wrote: »

I can understand wanting to protect your home but to profit from your partner by charging more than half the bills sounds shady. Save yourself the heartache and get a lodger.

The person is living there rent free and enjoying all the benefits of a home
I doubt the OP will be charging them full rent, so it's up to them to save their money just in case, as one never knows.
I own my house mortgage free and there is no way I am prepared to have someone come and then claim 50%.
Being in that situation where I had to give my ex more than 50% and no way in hell will I be foolish enough to get caught up in something like that again.
Love is a wonderful thing, but when hell kicks in, one's world is turned upside down for a long time

Lokolo_2

Gavin83 wrote: »

For what?

They'd argue that they were paying towards the upkeep of the house in such a scenario. If you want to be 100% sure they'd have no claim I'd follow the standard advice on here. Get your theoretical partner to put his "rent" into a savings account. If you break up he has a deposit for a new rental property and has no claim on your house. If you stay together and potentially marry you've got a pot of money towards something else in the future.

Seems the fairest result for both parties.

I understand what you are saying, but isn't it a tad unfair for someone to live rent free and then potentially walk off with a nice pot of savings at my expense? I can see it is a good idea if the relationship works then that money could be used for a wedding or something both would benefit from. I am not talking about market rate of course but something negotiable between the two. Maybe this is a bad idea though, I am definitely open to more views about this! Possibly putting it into a joint account instead?

Lokolo_2

kangoora wrote: »

Of course, if you should marry and the overall relationship (including marriage) goes past a nominal 5 year point then all assets are 'usually' considered 'marital assets' including pensions, savings etc. Of course, that also applies to whatever your partner brings to the marriage.......

Something to consider given your original question unless you do decide to not get married ever. Marriage does bring into effect certain tax benefits, retirement planning & IHT benefits as well as a wedding ring

Hello kangoora, thank you, this is as I suspected, I would think staying unmarried a while until you feel like you can fully trust the other person, but that is a topic for another thread I think!!

Lokolo_2

Socajam wrote: »

The person is living there rent free and enjoying all the benefits of a home
I doubt the OP will be charging them full rent, so it's up to them to save their money just in case, as one never knows.
I own my house mortgage free and there is no way I am prepared to have someone come and then claim 50%.
Being in that situation where I had to give my ex more than 50% and no way in hell will I be foolish enough to get caught up in something like that again.
Love is a wonderful thing, but when hell kicks in, one's world is turned upside down for a long time

Hi Socajam, you sound very sensible now and have similar thoughts to me, yes definitely not market rent, that would be taking the Mickey! I guess the most moral thing would be only to charge them half the bills and to protect my investment that way even if it means the partner living rent free, then time would tell if they can be trusted the money they saved could be used for a wedding and maybe they pay for holidays and meals out as a thank you for living rent free!

Nobody has mentioned how the lack of a secure home would make you feel, I can imagine some people would not like that idea and insist on buying into the house? That would leave me with another potential issue!

[Deleted User]

Socajam wrote: »

The person is living there rent free and enjoying all the benefits of a home
I doubt the OP will be charging them full rent, so it's up to them to save their money just in case, as one never knows.
I own my house mortgage free and there is no way I am prepared to have someone come and then claim 50%.
Being in that situation where I had to give my ex more than 50% and no way in hell will I be foolish enough to get caught up in something like that again.
Love is a wonderful thing, but when hell kicks in, one's world is turned upside down for a long time

I don’t really understand what this post has to do with profiting from a partner. Like you, the OP is mortgage free. Why would either of you want to charge a partner more than 50% of the household bills to effectively make a profit from someone you love? That has nothing to do with a future partner trying to make a claim on yours or the OP’s partner.