Partner Rent Disagreement

FBaby · 18 April 2017 at 5:58AM

Ultimately, if this is not something you can easily discuss together so you can reach a position that makes you both happy with, you are not yet ready to move in together. There are many other parts of cohabitation you might disagree with that will require some communication and compromise, so your priority should be to get this right first.

getmore4less · 18 April 2017 at 6:32AM

FBaby wrote: »

The fairest of all is to work out the cost of the interest which is the rent and the capital which is the investment. You pay the capital in full you share the interest. His half of the interest he puts towards something joint his equivalent of the capital repayment he invests how he wishes.

But that does not represent the situation at all well as an equivalent of "rent"

If the place was mortgage free then the interest/rent is ZERO.

mortgage interest and rentable value have no correlation.

In equitable(beneficial) terms if you service the debt you own the share that debt buys.

getmore4less · 18 April 2017 at 6:55AM

justme111 wrote: »

You have an account where money goes in both of your names. If you see he is not contributing to it or you can not agree on what to spend it then that will be your litmus paper. Why not to spend it on holidays ? You would have spent your other money on holidays, you save your other money in this way. Some big household goods , further career training, cars - anything could be paid with this money provided that those were the same amounts benefitting each of you. It is nice to spend it on something that you would not been afford otherwise and what is your common project . Even food shopping could be done with this money but then there is a potential for people to argue one was buying expensive treats/alcohol consistently with it
Btw if he ends up moving out only 50% of this money is his ,other 50 is yours. I do not see why all of it would be considered "his" as per pastures new comment. Why would only he benefit monetarily from living together but not she ?

Wrapping the "rent" money in some elaborate scheme to hide it from it going towards the mortgage will not protect the OP from the OH getting a beneficial interest.

having a paper trail in a joint account that only he contributes to will make his claim even easier.

Crazy idea.

Also there is really no need to create joint finances and credit histories till you get a mortgage with someone when there is no choice.

Share the running costs as if you were both tenants, decide the "ownerships" costs are joint or not, the OH either buys in or not all or nothing.

while it is nothing the suggestion they save to buy in later(or have funds to move on) is sensible, no need to track or check, when the time comes they will either have the money or not.

Do not in anyway tie some virtual rent to other activities, if the OH, while living rent/mortgage free, wants to show some appreciation by paying for a nice dinner or a better holiday so be it but don't pretend it is a substitute for rent.

justme111 · 18 April 2017 at 10:32AM

Ok , have an account with his name on it only but surely on discussing how you spend that money it will crop up how much is there and you will know the balance.
Why not tie it to other activities , specially couple one's?
It is nice and symbolic thing to do. And no , the money does not go towards mortgage so there is no need to create elaborate schemes. The money goes on surplus luxury spending that otherwise would not have happened.
You might be happy to either be one that benefits unilaterally from circumstances or live with one , I would not be. Any benefit from living together has to be shared 50/50 unless exceptional circumstances apply or it is difficult to share.

FBaby · 18 April 2017 at 10:49AM

getmore4less wrote: »

But that does not represent the situation at all well as an equivalent of "rent"

If the place was mortgage free then the interest/rent is ZERO.

mortgage interest and rentable value have no correlation.

In equitable(beneficial) terms if you service the debt you own the share that debt buys.

So are you saying that even if OP had no mortgage to pay she should still expect rent and therefore make a profit from her partner?

I suppose it all seems strange to me because I would never consider sharing my life and home with someone unless our relationship was serious enough that I wouldn't feel comfortable with the principle of one partner using the other to make a profit out of them.

Kynthia · 18 April 2017 at 10:53AM

Claiming beneficial interest is not as easy as many people on this forum seem to think. For a start there needs to have been some intention for the partner to gain an interest in the property and clearly a written agreement would show that is not the case. It needs to be updated should anything change to show the intention didn't change. Giving more than half the bills doesn't automatically mean it's going towards the mortgage and beneficial interest can be argued. For a start the money would need to go directly to the mortgage company or at least into the account where the mortgage is taken from.

Plus paying more than half the bill doesn't meant 'rent is being paid legally. Rent is what lodgers pay and your partner isn't a lodger but a member of your household which is a different status. Any money a member of your household gives you is considered a contribution to household costs. Contributions don't have to be exactly equal either so paying more than half the bills doesnt mean there's a contribution to the mortgage.

OP I think it's something you need to work out between you. I personally would want us both to be better off so something between just half the bills and half what the homeowner is paying. However there isn't one right answer. Do some legal research rather than assume people on a forum are right and then try to come to an agreement.

Gavin83 · 18 April 2017 at 11:32AM

justme111 wrote: »

Ok , have an account with his name on it only but surely on discussing how you spend that money it will crop up how much is there and you will know the balance.
Why not tie it to other activities , specially couple one's?
It is nice and symbolic thing to do. And no , the money does not go towards mortgage so there is no need to create elaborate schemes. The money goes on surplus luxury spending that otherwise would not have happened.
You might be happy to either be one that benefits unilaterally from circumstances or live with one , I would not be. Any benefit from living together has to be shared 50/50 unless exceptional circumstances apply or it is difficult to share.

So you suggest he should contribute an amount equal to the mortgage payment to the relationship, except not directly to the mortgage so if they do break up he has no beneficial interest in the property? Once again, having your cake and eating it comes to mind.

I'm also not sure it'll work. I still think if he was contributing more to the relationship to her they'd still be a possibility he'd have a beneficial interest. Either she wants the money and takes the risk, or doesn't take the money and secures her property. There is no way around this and nor should there be.

davidwood123 · 18 April 2017 at 12:53PM

I've been thinking about this recently. My daughter is moving in with her boyfriend who has moved into a brand new house this month.

She owns her own place and will be renting it out but he's suggested they go 50% on the mortgage and bills......and she seems to be going along with this.

I think if she now suggests to him that she shouldn't be paying half the mortgage she's worried it will cause trouble. I'm trying to change her view on the situation but she's an adult at the end of the day and it's her decision to make.

He also earns far more than she does.

getmore4less · 18 April 2017 at 1:26PM

FBaby wrote: »

So are you saying that even if OP had no mortgage to pay she should still expect rent and therefore make a profit from her partner?

I suppose it all seems strange to me because I would never consider sharing my life and home with someone unless our relationship was serious enough that I wouldn't feel comfortable with the principle of one partner using the other to make a profit out of them.

Not at all, what I am saying is the mortgage has no relevance at all.

you are the one suggesting that if there is a mortgage there should be an element of "rent" that relates to that mortgage interest.

justme111 · 18 April 2017 at 3:43PM

Gavin83 wrote: »

So you suggest he should contribute an amount equal to the mortgage payment to the relationship, except not directly to the mortgage so if they do break up he has no beneficial interest in the property? Once again, having your cake and eating it comes to mind.

I'm also not sure it'll work. I still think if he was contributing more to the relationship to her they'd still be a possibility he'd have a beneficial interest. Either she wants the money and takes the risk, or doesn't take the money and secures her property. There is no way around this and nor should there be.

Sorry I am not sure what you saying there. I suggested he puts the amount aside equal to what he is paying for the roof above his head when he lives without her. Ie he pays at present £700 rent - after moving with her he keeps paying 700 into a separate account from which BOTH of them would benefit. I have not mentioned mortgage , her house may have no mortgage at all or have £2000 mortgage - it is irrelevant. Once again , the cake which they would have due to his rent money staying in family would be eaten by BOTH of them. What is wrong with both of them eating that cake , ie benefitting from being one household? What you mean by "contributing more to relationship with her"? More than what? If they were not to spend anything from that surplus money at all and split in a year he takes what he needs to move out , the reminder then split in half. Both benefitting but not at each others cost. The situation is not adversarial, it is mutually benefitial.

Partner Rent Disagreement

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free