I very recently bought my first home and as a first time buyer I'm pretty clueless and was hoping for some advice... Originally myself and my partner were trying to get a joint mortgage, however unfortunately he had a CCJ on his credit report so couldn't be joint on the mortgage at all. We decided to just get a mortgage in my name but move him in, so I paid the deposit out of my savings but he agreed to pay half the bills and mortgage each month. Then after a few years when his CCJ had cleared we'd try again for a bigger home and a joint mortgage. I contacted a financial advisor who told me to not mention my partner's name throughout the full process and to move him in after a month or so.. that way if we did ever split he wouldn't be entitled to my deposit. I've moved in this week and would like to move my partner in as soon as possible, I've contacted the council tax office and let them know he will be living there but I'm just wondering what's the 'proper' way to do things. I want my partner to feel like it's his home as well and now the financial advisor seems to have disappeared once I paid him and I'm worried incase it's against the law if I move him in. Who is it I contact? What would my partner be entitled to if we did ever split? Is anyone in a similar situation?
Someone who knows more from a legal standpoint will be along soon I'm sure.
But in the meantime from a common sense point of view I would view all this as follows:
It is your house in your name: of course you may cohabit so he can move in no issues as long as council tax know and any benefits people know you live together, share bills and so on.
You need to think of it as a common law cohabiting relationship...if you were renting still, your partner would still need to be paying rent and bills somewhere wouldn't he? You can make a note how much capital he will have paid over the next five years and then if you buy together then have a joint mortgage it is up to you whether you then count it as 50-50 from then on, as his support over the next 5 years allows your property to hopefully increase in value and enable a bigger house. But if it goes into negative equity or it is an interest-only mortgage then you have to think of it as you having enabled the sale, taken on the risks and potential losses, you as being his landlady really. Would he pay you half the deposit you have put in over the next five years as well as his share of outgoings. Is he saving to match your deposit plus capital gains for the next purchase? If not then a codicil/legal agreement to the next joint mortgage stating you receive x amount upon sale before further proceeds are split fifty-fifty would be reasonable.
You don't need to do anything now. You do need to put him on utility bills though if his credit rating is to improve...as it stands you are liable for all unpaid debts if you are the only one named, including defaulting on the mortgage so you should have standing orders set up either fifty fifty to a joint account from which direct debits come or from his account to yours and you monitor the money is going in
If you split up before you buy together and the house is under your name I am not sure he is entitled to anything other than financial compensation for anything he does to the house or buys for the house as improvements, deck, furnishing etc If you feel morally he is entitled to half the capital gains made then you have it revalued when you split, look at what you paid originally and if it has gone up 5k for example then you give him 2.5...is he prepared to pay you half towards a gains loss if you split up? or is it then all your house lock stock and barrel? Do you have spare room to take a lodger if you split or can you afford the repayments on your own or would you sell to downsize?
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