Boyfriend moving into my flat!

The_Real_Cheddar_Bob

I'm always amazed by these posts and how fixated so many can be on money. Who cares what share is what, when it all goes belly up the divorce court will chop up the "assets" anyway. 

Fundamentally, if you want to live with someone, focus on your relationship and if it is meant to be then bonus. 

Mojisola

Megan123456 said:

If I took out the service charge for the flats and mortgage interest, I'd only be asking him for £135 a month, and id be paying £700 odd.

his plan was to start paying a mortgage too himself

Then suggest he pays the difference into savings. 

If, as you hope, you're ready to buy somewhere together in a couple of years, he will have a lump sum to reduce the mortgage on the next property.

If the relationship fails, he will be able to walk away at a moment's notice without you having to put up with him while he saves for a deposit. 

getmore4less

One issue with mortgage interest is it is not a fixed number it changes over time(see calc at bottom) with a repayment mortgage and depends on variables unrelated to occupation value.

Anyway a bit of self indulgence here.

When you said your mortgage was £500 split £270 interest £230 capital my immediate though was that must be high rate and/or long term  but that was gut so I thought I would check my gut.

I did a mini spreadsheet to look at a question asked a while back about how much of a mortgage payment is capital.
it varies with rate and term.

Y\R	05	10	15	20	25	30
00.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
00.50%	97.53%	95.12%	92.78%	90.49%	88.25%	86.07%
01.00%	95.12%	90.49%	86.08%	81.88%	77.89%	74.09%
01.50%	92.78%	86.08%	79.86%	74.10%	68.75%	63.78%
02.00%	90.49%	81.89%	74.10%	67.05%	60.68%	54.91%
02.50%	88.26%	77.90%	68.76%	60.68%	53.56%	47.27%
03.00%	86.09%	74.11%	63.80%	54.92%	47.28%	40.70%
03.50%	83.97%	70.50%	59.20%	49.71%	41.74%	35.05%
04.00%	81.90%	67.08%	54.94%	44.99%	36.85%	30.18%
04.50%	79.89%	63.82%	50.98%	40.73%	32.53%	25.99%
05.00%	77.92%	60.72%	47.31%	36.86%	28.72%	22.38%

now £230/£500 is  46%(you probably rounded so could be a range of something like 43%-49%) 

That suggests the term is in the 25+ range  or very high LTV to go over 3% for a shorter term and smaller mortgage
with interest around £270 we have for a £500 payment  we get numbers around 
25 years £104k at 3.1%  
30 years £126k at 2.55%
35 years £145k at 2.2%
if we go with later after 1 year on repayment

amount	rate	payment	owing
£145,000.00	2.25%	£499.14	£142,244.48

the interest drops from £272pm  to £267pm

Megan123456

The_Real_Cheddar_Bob said:

I'm always amazed by these posts and how fixated so many can be on money. Who cares what share is what, when it all goes belly up the divorce court will chop up the "assets" anyway. 

Fundamentally, if you want to live with someone, focus on your relationship and if it is meant to be then bonus. 

Thanks for your views, although I have to say I disagree! I think its great to be cool about money with all the other stuff - who pays for meals out and the cinema and gifts for each other - I'd never look at any of this! But as a young first home owner with not too much cash to spare and a partner moving in I do think its important to get the basics straight so we can enjoy living our lives together with neither person feeling they are carrying the weight of two - were both accountable to create a good life and standard of living to the other (even if that means different things financially, I think we should talk about it!). Just my view, and I respect yours :-:smile:

Megan123456

dimbo61 said:

It looks like you have already done the maths.
£325 a month is cheap rent for a young man living in a nice flat.
You will have to pay 100% council tax so No 25% discount and you need to inform them so he is registered with the elections people ( Electoral Register )
 " If you want to get to know me Come and live with me "
He has already owned a property so can't use a HTB ISA or LISA

Thank you, this really helps! The general consensus on the thread does seem to be asking him to just pay hall bills which would make his payment more in the £200 per month mark - happy to do it if its fair but it seems very low at first look!

Megan123456

MovingForwards said:

What is it you want as you say it's your flat for the first few years, but then make reference to your OH contributing to the mortgage interest, therefore gaining a beneficial interest in the property.

Thank you - what I'm after (being frank!) is security for the first year or two we're together that if we split up, my (very new!) flat remains mine and I don't have to go through complex buying-him-out processes. 

In terms of what we both want - he wouldn't have chosen a flat (garden lover!) if we had been buying together, so we both want to aim to move to a bigger house in 2 years which is somewhere we both love.

In the meantime, he wants to move in and enjoy our lives and save for our next place.

I want him to move in too, but it's a small apartment (I was buying for the intention of one person!), so I'd love him to live here with me but I want to make sure we're both contributing fair amounts.

Hope that helps!!

Megan123456

tacpot12 said:

I think you should be able to avoid any complication of your boyfriend gaining a beneficial interest in your property if you both sign an agreement that he will give you £200 pcm towards your bills, and £125 pcm for having him as a guest, and that there is no intention that he should gain a beneficial interest in your property. These amounts are carefully set so they are not half the bills and not half the mortgage interest. It is very unlikely he would make a claim that he had a beneficial interest unless you decide to remain where you are for more than a couple of years, so it would be worth reviewing the situation if you do decide not to move. 

The other thing you could do now, or later, is to let him have a beneficial interest your flat in exchange for contributing half the mortgage capital + interest, and for you to use the money that this is saving you to put to one side so you can buy him out if anything does happen to the relationship.

If you decide to marry, a pre-nuptual agreement could be useful, but be aware that UK courts will not uphold such an agreement if it prejudices the interests of any children, and both parties need to have taken independent legal advice prior to signing. 

Thank you very much for this! I will look into beneficial interest in the flat - this could work :-) 

Megan123456

ACG said:

Half the bills/food? 

Its definitely an option, would you see bills as including ground rent, service charge, and mortgage interest/fees? Or any/none of those?

Megan123456

getmore4less said:

One issue with mortgage interest is it is not a fixed number it changes over time(see calc at bottom) with a repayment mortgage and depends on variables unrelated to occupation value.

Anyway a bit of self indulgence here.

When you said your mortgage was £500 split £270 interest £230 capital my immediate though was that must be high rate and/or long term  but that was gut so I thought I would check my gut.

I did a mini spreadsheet to look at a question asked a while back about how much of a mortgage payment is capital.
it varies with rate and term.

Y\R	05	10	15	20	25	30
00.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
00.50%	97.53%	95.12%	92.78%	90.49%	88.25%	86.07%
01.00%	95.12%	90.49%	86.08%	81.88%	77.89%	74.09%
01.50%	92.78%	86.08%	79.86%	74.10%	68.75%	63.78%
02.00%	90.49%	81.89%	74.10%	67.05%	60.68%	54.91%
02.50%	88.26%	77.90%	68.76%	60.68%	53.56%	47.27%
03.00%	86.09%	74.11%	63.80%	54.92%	47.28%	40.70%
03.50%	83.97%	70.50%	59.20%	49.71%	41.74%	35.05%
04.00%	81.90%	67.08%	54.94%	44.99%	36.85%	30.18%
04.50%	79.89%	63.82%	50.98%	40.73%	32.53%	25.99%
05.00%	77.92%	60.72%	47.31%	36.86%	28.72%	22.38%

now £230/£500 is  46%(you probably rounded so could be a range of something like 43%-49%) 

That suggests the term is in the 25+ range  or very high LTV to go over 3% for a shorter term and smaller mortgage
with interest around £270 we have for a £500 payment  we get numbers around 
25 years £104k at 3.1%  
30 years £126k at 2.55%
35 years £145k at 2.2%
if we go with later after 1 year on repayment

amount	rate	payment	owing
£145,000.00	2.25%	£499.14	£142,244.48

the interest drops from £272pm  to £267pm

Thank you this really helped! My situation is one of your examples so your calculations are pretty much right (I'd simplified the figs. a bit but not much).

So I guess the point being if I do want him to contribute to half of the 'in the bin' costs of the flat (aka those that don't contribute to acquiring real equity - which I naturally should pay for), I would need to check in with it every 6 months ish and reduce his costs accordingly by £10 or more depending on what it is.

MovingForwards

If it's security for you, then just have 50% of gas, electric, council tax, internet / TV package / licence another normal bills, not associated with the flat eg no mortgage, interest, ground rent.

Ask your OH to put half the mortgage into a savings account(s) to start building up a deposit to go with your equity deposit.

Then if things don't work out, you have your flat, he has his deposit to buy / rent his own place.