Please help family and rent

she should have been embarrassed to NOT bring it up, come on🙄 I’d love to live rent/ mortgage free too!

£2800 a month, 5 years = £168k. That’s how much she has benefitted from you so far.

If you sell, make sure it’s at market rate, she already benefitted by 168k from you.

My sister is my best friend, this isn't going to get legal in a million years.

She knows you won't get legal.

As for best friend, examine that assumption more carefully. Your sister has been living off you and your husband for the last 5 years. I can see putting her up temporarily while she got back on her feet after her marriage breakdown. But she's been taking advantage the tune of over £100k and moved in a cocklodger bf and they won't even buy you a damn lunch. That's not a friend, much less a best friend. Embarrassed to bring up paying her way, my ass. Plus, her bf might not be a good one, given he's moved into her free house, didn't offer rent or even to cover your lunch.

I'm glad you brought it up to her and she's agreed to pay some rent.

Decent result - i dont judge your sister so much as her man tbh but its done now

Fraid so. You told DSis it was rent free so of course she continues to assume that unless you say differently. But it's not too late to ask for some rent and obviously it caused so offence. You will enjoy the extra income! But remember they will have tenants rights and you will have to go through all the processes to be a private landlord - gas and electric inspections etc.

Cross post

Good result.

You were very silly

Now you'll have to talk

Your sister is a cheeky fucker. I can’t even imagine not offering something, even when she moved in at the start.

Voted YABU because why would you "presume" instead of asking? Agree they should be paying rent though!

Hopefully you're meeting now and will have an update for us all soon!

they are taking the piss, but the problem has been caused by a lack of communication. You said it’s free for as long as you need it, and you have said nothing else since. It’s time to talk.

Issues section 21s to her?

She sounds like a CF. Start charing them FULL rent.

It's outrageous that your sister has a household income of £100k and thinks she should be allowed live in someone else's house for free. You may be rich but she is also well off.

I would use the new rules coming in next month as an excuse to bring up the topic now. Set the slate clean and get an agreement going forward. I am a bit baffled as to why this wasn't a conversation three months ago, but we are where we are.

Just talk to her about it. Say that you think if her partner has moved in and he’s getting rent on his own place it’s fair that rent starts being paid on their current house. Remind her that you obviously bought the house she’s in to generate an income (maybe mention uni fees) and whilst you’ve been happy to help her, it hasn’t been doing this and obviously him moving in and keeping his own income has changed things. Obviously if she’d rather move out with him that’s fine too.

The new partner does potentially sound like a CF though so don’t be surprised if she ends up back with you!

This, he's now making a saving by living in your investment rent free!!!!!! Speak up.

You don’t need to sell it for ‘best’ market value, just what they can afford. You’ll not be losing money as currently you own a property that you’re receiving nothing for.

Hi OP,
As this is your sister and you don't need the rental money particularly you could consider offering her a private mortgage to buy your house.

In a private mortgage basically your sister's payments buy the house from you paying a person rather than a bank.

I don't think there is normally any tax payable on the receipt of the payments as she would be paying you to buy your asset but if you charge interest tax would be due on that. Not sure how the property being a business might affect that.

Capital gains is due when you dispose of a property as I'm sure you know. It is due on the rise in the value of the property when you bought it to when you sell it even if you sell it under value or gave it away.

You would need a legal agreement and the property after being put in your sister's name would have a first charge registered against it (like a bank does when there is zero mortgage) to protect your money.

As you are in an awkward situation where you want to help your sister but feel like it is beginning to take the piss - so worth thinking outside the box.

If the house was worth 500k and you charged £1500 a month (no interest) it would take around 28 years for your sister to pay for the house in full.

Right Sis,
now that you are happy and settled, which i am thrilled about, we think it is time for you and partner to start paying some rent. We aren’t asking for market rent but you will need to start paying something; when you first moved in that was a different proposition and circumstances have changed. As you know property management is our business and livelihood and the house you live in is not generating currently.

Plot twist… is it possible that your sister is already charging her partner rent, having conveniently left out the fact she lives there for free?

That would potentially explain why her partner (who lets assume for a moment is a really nice and decent man) didn’t feel the need to pay for lunch and didn’t feel awkward about splitting the bill.

As she should be. What a lovely sister and brother in law you have both been but after 5 years and moving another man in, she has made no effort to offer anything.
I would ask her plans are going forward and long term for accommodation. She is the female equivalent of the aptly named cocklodger and has taken advantage of your generous nature. Can't believe they both thought it was ok not to even offer to pay for your meal. Your husband was right to be upset

@limeandwater Your sister needs to start working more than three days a week if she wants to maintain her lifestyle, doesn’t she?!

Honestly OP, she’s making a mug of you-perhaps she wasn’t when she first split from her ex, but she is now.