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  • FIRST POST
    • mrseyes
    • By mrseyes 11th Jul 18, 8:11 AM
    • 282Posts
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    mrseyes
    Cohabitation agreement
    • #1
    • 11th Jul 18, 8:11 AM
    Cohabitation agreement 11th Jul 18 at 8:11 AM
    My daughter will be soon be the sole owner of the property but her boyfriend says he will be contributing some money, if they draw the Cohabitation agreement do the mortgage lender needs to know this?
Page 1
    • getmore4less
    • By getmore4less 11th Jul 18, 8:20 AM
    • 33,479 Posts
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    getmore4less
    • #2
    • 11th Jul 18, 8:20 AM
    • #2
    • 11th Jul 18, 8:20 AM
    she needs to tell them there will be another adult in the property if this is a purchase with a mortgage.

    does she want to give him a beneficial interest in the property?
    • mrseyes
    • By mrseyes 11th Jul 18, 8:36 AM
    • 282 Posts
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    mrseyes
    • #3
    • 11th Jul 18, 8:36 AM
    • #3
    • 11th Jul 18, 8:36 AM
    she needs to tell them there will be another adult in the property if this is a purchase with a mortgage.

    does she want to give him a beneficial interest in the property?
    Originally posted by getmore4less
    No and although he say he may be contributing some money he is not going to stay there all the time (they have not been long enough together yet)
    • tlc678910
    • By tlc678910 11th Jul 18, 1:38 PM
    • 731 Posts
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    tlc678910
    • #4
    • 11th Jul 18, 1:38 PM
    • #4
    • 11th Jul 18, 1:38 PM
    She would be wise to not accept any money from him if she does want him to have any rights to the property. Even with legalities aside it could come back to bite her and cause aggravation. If the relationship works out they could buy together later.
    Tlc

    Edit: I thought you meant money towards the house purchase, do you mean paying her some rent? It would be best if any agreement to split bills or contribute included splitting utilities and food but not the mortgage and made clear your daughter pays the mortgage herself if she wants to without doubt maintain 100% ownership.

    The mortgage lenders will need to know if anyone else is living in the property if the question is asked. If he is not living there then no but do you have a co-habitation agreement if you don't co-habit?
    Last edited by tlc678910; 11-07-2018 at 1:48 PM.
    • Paul_DNAP
    • By Paul_DNAP 11th Jul 18, 2:14 PM
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    Paul_DNAP
    • #5
    • 11th Jul 18, 2:14 PM
    • #5
    • 11th Jul 18, 2:14 PM
    I would say she needs to make it clear that the money is in no way rent or mortgage payments, and that it is a contribution to general household expenses (utilities, phone, upkeep, food etc.) or else the guy becomes a tenant or lodger with the associated rights.
    Also an agreement like this needs a clear exit clause, i.e. he has to get out of the house upon request if it all goes pear shaped, she don't want an ex claiming a right to be there. (Although I am sure they'll live happily ever after).
    (Although I could be wrong, I often am.)
    • Pixie5740
    • By Pixie5740 11th Jul 18, 2:17 PM
    • 13,280 Posts
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    Pixie5740
    • #6
    • 11th Jul 18, 2:17 PM
    • #6
    • 11th Jul 18, 2:17 PM
    What exactly will he be contributing money towards? The deposit? The mortgage? Household bills?
    • mrseyes
    • By mrseyes 12th Jul 18, 7:42 AM
    • 282 Posts
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    mrseyes
    • #7
    • 12th Jul 18, 7:42 AM
    • #7
    • 12th Jul 18, 7:42 AM
    What exactly will he be contributing money towards? The deposit? The mortgage? Household bills?
    Originally posted by Pixie5740
    He hasn't specified what he will be contributing money towards.
    • maisie cat
    • By maisie cat 12th Jul 18, 8:14 AM
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    maisie cat
    • #8
    • 12th Jul 18, 8:14 AM
    • #8
    • 12th Jul 18, 8:14 AM
    I would be very wary about any relatively new partner that talks about "contributing" at this early stage.
    It does sound like he thinks he should be due a share of the property without making any legal commitments. If he is not living there have him buy food or other consumables for example when he is there.
    • getmore4less
    • By getmore4less 12th Jul 18, 9:03 AM
    • 33,479 Posts
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    getmore4less
    • #9
    • 12th Jul 18, 9:03 AM
    • #9
    • 12th Jul 18, 9:03 AM
    Where is he living now.

    How long before this other places gets dropped and this now and then becomes always.

    He needs to have an alternative permanent residence or the council tax discount could be an issue.


    I think this needs to be more arms length, temp guest not cohabit.

    I would even go as far as no cash changes hands for anything to do with the house.
    • TBagpuss
    • By TBagpuss 12th Jul 18, 10:08 AM
    • 6,907 Posts
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    TBagpuss
    It's very sensible for your daughter to be thinking about a cohabitation agreement.

    When she buys, she will have to tell the lender about any other adult who will be living in the property, this is so that they can ensure that he signs a form to say (effectively) that he will move out if the lender has to repossess the property.

    She would not normally have to tell the lender if he moves in after she has bought, as any claim he might then have to the house would be later in time than that lenders mortgage being secured over the property, so they would be protected.

    She will need to make sure that she tells the insurer as they normally need to know how many people are living at the property.

    In terms of the cohabitation agreement, get this drawn up professionally . It can be written to state that he won't gain any interest in the property regardless of what contributions he makes, unless there is a further written agreement to say that he will.

    If / when they decide that he will be thee full time and will start contributing equally they should revise the cohabitation agreement to define what interests he will gain (this might, for instance, include recording how much equity she has at that time as a % of the value of the house, and recording that the will get that % of value and he will be entitled to 50% of equity over that amount, or that he will be entitled to be repaid whatever *capital* he has paid towards the mortgage, or even to explicitly record that he is paying rent and won't be entitled to a share of the house value)
    • mrseyes
    • By mrseyes 12th Jul 18, 11:25 AM
    • 282 Posts
    • 52 Thanks
    mrseyes
    It's very sensible for your daughter to be thinking about a cohabitation agreement.

    When she buys, she will have to tell the lender about any other adult who will be living in the property, this is so that they can ensure that he signs a form to say (effectively) that he will move out if the lender has to repossess the property.

    She would not normally have to tell the lender if he moves in after she has bought, as any claim he might then have to the house would be later in time than that lenders mortgage being secured over the property, so they would be protected.

    She will need to make sure that she tells the insurer as they normally need to know how many people are living at the property.

    In terms of the cohabitation agreement, get this drawn up professionally . It can be written to state that he won't gain any interest in the property regardless of what contributions he makes, unless there is a further written agreement to say that he will.

    If / when they decide that he will be thee full time and will start contributing equally they should revise the cohabitation agreement to define what interests he will gain (this might, for instance, include recording how much equity she has at that time as a % of the value of the house, and recording that the will get that % of value and he will be entitled to 50% of equity over that amount, or that he will be entitled to be repaid whatever *capital* he has paid towards the mortgage, or even to explicitly record that he is paying rent and won't be entitled to a share of the house value)
    Originally posted by TBagpuss
    Presentably he lives with his parent
    He said he will contribute after she has bought the property and mortgage is being secured over the property in her name.
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