Charging parent rent

Peterrr

Presumably your mother doesn't receive any housing-related benefits (even if within a universal benefit calculation)? Such would be compromised as she wouldn't be able to continue claiming unless a specific rent agreement is created (i.e. not 'keep' or 'contribution to bills')

Jami74

sheramber said:

If she is living in the annexe will she be independent or will she be  sharing any expenses with you?

Will she be buying her own food and cooking it in the annexe?

Will utilities be independent  or shared with the main house?

She will be buying her own food and cooking it in the annexe (although we might sometimes share a meal together as we do now).

I assumed water and electric would all go through the main house. If the annexe is set up for separate bills then she would happily pay the council tax and utilities herself. I've looked on the council website for council tax banding and the annexe is not listed as a separate address, eg if the main house is number 14, there is not a number 14a.

At the moment me and my partner pay 50:50 on rent, utilities etc and she lives alone so pays 100% of her rent and utilities. I originally thought if I buy a place we can all live we'd all put in a third each. Her third of everything (and yes, rightly or wrongly I had included the mortgage repayments) would be less than what she is currently paying. I have no intention of taking advantage of her and at the same time she wants to pay her way and expects it to cost at least as much as she currently pays.

I suppose the other option would be to somehow add her to the mortgage - although I think this would reduce the term of the mortgage to single figures due to her age, by myself I would get a 20 year mortgage.

elsien

I think her to the mortgage would give her part ownership of the house. Which then begs the question as to what would happen if she needs care in the future and needs to realise that asset to pay for it?

Kynthia

Usually money from family living with you is considered a contribution to household running expenses and not income. 

If your intention isn't to profit from the situation, the amount is fair and not excessive compared to the costs of the household, and you don't have a lodger/landlord relationship regarding the living arrangement, eg business-like, then the money they pay isn't income.

The below link discusses a similar arrangement.
https://www.accountingweb.co.uk/any-answers/should-rent-a-room-relief-include-rent-from-adult-son