Splitting expenses when one partner has a house owned outright

[WoodchipNightmares]

We're in our early 30s, and DP and I would like to move in together. This would mean him moving into my home.

I am in the extraordinarily fortunate (but also sad) position that - due to my DM dying unexpectedly and leaving everything to me - I own my home outright. Obviously I have to pay out all the usual bills, repairs etc., but there's no mortgage.

DP is living in a rented flat, shared with a friend. He's not a particularly high earner (c. £20k/year) and getting on the housing ladder alone is something of a pipedream for him. I'm self employed and my income can fluctuate, but it's in the ballpark of £25-35k/year.

I'd expect bills to be split (50/50 or by earnings?) but I don't know what to do about the cost of housing itself. If he's there rent free is he a cocklodger? If I asked for rent would I be taking the piss? What if, in 10 years, the house needed something major doing to it like a new roof - should that be split?

No kids, and not planning them for health reasons, and neither of us is especially fussed about marriage.

I wouldn’t charge him anything if I had no mortgage - I’d just expect him to split bills with me. But I would make him sign a legal declaration that he won’t have any interest in the property.

I’d do the same even though I do have a mortgage. In my mind, it’s unfair to ask anyone to pay towards an asset they’ll never own any stake in, so if I moved a partner in with me I’d encourage them to save enough to have a break-up fund if things went wrong, while we split the bills and I paid the mortgage alone. If the relationship did work out, their extra savings would go towards buying a joint property if we went down that route.

Yes, that's exactly what I think.

Why should he pay rent when his contribution to bills covers the extra cost of him living with you? If you split, you still have your house. He shouldn't walk away with nothing.

I don't see the logic of people's suggestion that you share a savings pot for repairs / break up either. You maintain your asset - it's all yours. Keep separate accounts for any break up fund.

I wouldn't try to find extra jobs for him to do to earn the privilege of living with you - just share housework, minor DIY and bills fairly.

@AdultingAvoidance

pls get a tenancy agreement and he pays some rent + half bills, otherwise you will feel resentful if it doesn't work out in 5 years time and he walks away with a large deposit to start a new life with someone else.

Why would you want to actively ensure your partner would be financially worse off if you break up? Whatever happens, you have a house. Surely if it breaks down you’d want him to be able to move out ASAP, having a good amount of savings would enable him to do this

@OuiOuiBonjour

Be careful. My Aunt was in this position and her boyfriend of 12 years (who didn't work and had never contributed to the mortgage) ended up with a legal claim to her home. Look into how you can protect yourself.

How?

Why should he pay rent when his contribution to bills covers the extra cost of him living with you? If you split, you still have your house.

so it's OK that he lives rent free for the rest of his life? Should we extend that to social and other housing? Would I ever spend years of my life paying a mortgage and then allow somebody to just move in and get all the advantages for free? In cloud cuckoo land.

My now dh moved into my house and he signed a legal agreement a cohabitation order I think, that my solicitor drew up. He didn't pay rent we just split bills but he did buy a buy to let flat with the savings he made. Now we just share everything but we started on a very formal financial footing and I don't think he would have really considered the long time financial implications if we hadn't.

I would speak to a solicitor before letting him move in to reassure myself.

My daughter had a similar situation. We’re still alive (obviously) but we helped her to buy a home and she has a small mortgage.

When her boyfriend moved in a lawyer helped her with a legal document to say that he accepted that he had no right over her property.

She charged him rent calculated by taking local house share costs from spare room.com and working out what the average rate charged would be for the first ten listed then knocking £100-£150 off that.

This was fair as if he had not moved in she would have let out her spare room so there was an opportunity cost to take into account. Also, if we had not given the money to her (or if she had not spent it on a house) it would have been invested earning money - another opportunity cost.

Having a formula to calculate the rent helped. He was paying much less than in his house share, she bridged part of the gap from not letting out the spare room. Worked for both.

They’re now getting married so all change again but that’s good, relationships develop!

I would not charge rent but you could both put some money aside each month for holidays and treats?

I would also get a solicitor involved to protect your assets incase you broke up and he tried to make a claim on your house

My DH is the higher earner. When we moved in together he was moving from his mortgaged flat to a mortgaged house and I was moving from a room in a shared house to his house. I did pay him rent and it was still less than my room in the shared house so I was financially better off. I wouldn't have objected to paying him some rent if it hadn't been mortgaged but wonder if that's the benefit of hindsight. There's always something that needs to be repaired, replaced or redecorated so even without a mortgage a house isn't free to live in.

We're happily married and have a joint mortgage now so it's a bit of a moot point for us now but I'd be wary of using money contributed by him to make big improvements to the property (eg. An extension, new kitchen). It's a tricky area of law that I don't fully understand but he could raise a TOLATA claim if you broke up and the property had increased in value due to his contributions.

Op I'm one the view your a partnership, partners shouldn't be looking to profit from one another. So no rent in my eyes.
Portion of the interest if the place is mortgaged.

I'd definitely speak with a lawyer over ensuring he has no claim should you split. And equally you should both consider wills and what you want to happen should something happen to you, without marriage or will, the house and contents would probably go to some cousin or other, leaving him homeless.

I'd ask him for a nominal amount to contribute to the maintenance of the house. Not a full rent amount. Then split bills in proportion to income. You both then benefit from no mortgage, but he's contributing to the wear and tear he's causing.

Well according to the thread the other day which presented a similar situation you should employ a solicitor, but his name on the mortgage and be prepared to hand over a chuck of equity of your property in the event of the relationship not working out. Failing that, pay him a £7k security deposit for the risk he is taken on by moving in with you.

@AdultingAvoidance

pls get a tenancy agreement and he pays some rent + half bills, otherwise you will feel resentful if it doesn't work out in 5 years time and he walks away with a large deposit to start a new life with someone else.

Thats exactly the opposite of how I feel. Expenses should be split and the non owning partner needs to save a nest egg.

The partner who has no claim in the house needs a nest egg to start over. It also helps the person who owns the house as if they need to split they don't have to worry about ending things.

Bills should be split in proportion to salary. You can’t charge him rent unless you plan to put him on the deeds eventually otherwise your very cheeky. Same as in the future if the roof goes etc it’s your house so you pay sorry .

Expenses should be split and the non owning partner needs to save a nest egg.
Does this also apply to the house share he's currently in? Do they have to let him live rent free so he can save a nest egg?

You can’t charge him rent unless you plan to put him on the deeds eventually otherwise your very cheeky

same as above.

so if you fall in love with somebody that lives in your house you don't charge them rent or if you do you should put them on your deeds eventually. Sounds like a lucrative career opportunity. Wonder which of our political parties will be the first to propose this....

@AdultingAvoidance

Don't be stupid.

Get a tenancy agreement, charge him rent even it if's nominal. But I'd charge him slightly less than he is currentrly paying. Protect your interests now.

WTF should your good futune extend to him, you are not married and do not have children together. Save his rent every month, build yourself an ISA or savings pot. He would have to pay rent anywhere else

This.

You don't intend to have children and marrying would hand him half your home.

You have nothing to gain by marriage so I would be slow to rush into it.

A nominal rent of half what he pays is reasonable.

This thread is in no way comparable to the one of the other day.

He wanted half a morgage, all cleaning, childcare, utilities and food bill.
That OP hasn't come back, but I for one sincerely hope she wasn't stupid enough to sign up for such a ridiculous arrangement which would put her in such a vulnerable position with her child.

This OP's boyfriend will pay half bils/food and nothing else?

Ridiculous.

He needs to pay 50% of his rent, so he can save and the OP isn't being used for free housing.

Protect yourself OP.

Hello I'm recently split up with my partner of thirteen years and have two children eight and four years I I'm allowed to live in the house that he owns but he wants £900 a month from me to live there to cover the mortgage and I don't earn that much a month he earns £70,000 a year and has not paid for any maintenance or repairs on the property I e had to so I'm wondering what are my legal if any rights thank you

I’d be advising him not to move in without getting married, as I would a woman in the same situation (much more common). Otherwise he’s making himself vulnerable to sudden homelessness.

Hi Buddy8 - you should start your own thread, as people replying here will respond to the original post from 2 years ago and miss your question.

If you weren't married to your ex, I think you are only entitled to maintainance for the children, which will be a percentage of his income. If your earnings are less than £900 a month you should look into what benefits you are entitled to. I would very reluctant to move into a property he owns, certainly one which he hasn't done anything to maintain. Having an ex as a landlord is not a good power dynamic. If you must live there, make sure you get a proper tenancy agreement.

ZOMBIE THREAD

I would ask for a minimal amount for rent. He will be paying half the bills but your appliances, furniture etc will have extra wear and tear because of more use. Put that "rent" money into a replacement/repair fund.

This is what would concern me.

It's a relationship, not a transactional business relationship.

Lodger /tenancy agreement with rent set an amount equivalent to half of all bills (council gas electric water broadband green bins) plus £100 or so in nominal rent.

Food 50/50.

He gets a material benefit /savings and you get protection.

If you do want to marry, revisit this.
When you are a woman with assets you do need to proceed with caution and always think about worst case /worst behaviour scenarios.

Separately the disparity in earnings would concern me long term unless he has plans to improve /increase earnings. He doesn't need to earn millions but he should be self-sufficient.