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Original poster

Splitting finances... when one inherited the house

44 replies

HouseNC · 18/09/2022 11:35

Basic situation is - following a family bereavement, I was lucky enough to inherit a house and now live mortgage free, but didn't inherit any cash beyond that. Obviously the bills still need paying as normal.

DP and I are talking about moving in together. He is renting and would be unlikely to be able to get a mortgage alone, certainly not on a house as nice as the one I inherited. Neither of us have kids, and nor are we planning them. We are both in work.

I can see two ways of doing things financially, but I'd love to know what others think would be fair

  • split all the bills equally down the middle and not charge beyond that
  • charge him what he currently pays in rent and split all the bills equally, and invest the money myself
  • charge him as above but use the money as our fund for things like holidays and emergencies

... or something else?

OP posts:
Fizzgigg · 18/09/2022 11:38

I think I'd split bills and then both pay into a rainy day fund - so less than rent but something towards upkeep of the house like decorating or repairs. Then he can also save to invest money of his own so if you ever split he's not totally shafted and broke.

Gizlotsmum · 18/09/2022 11:38

If you are mortgage free and the house is in your name only splitting the bills only seems fair, although what happens if the house needs work doing, or you want to change for example the kitchen. Who would pay then? By neither of you paying rent you are both better off, but you have the asset, which your partner doesn’t

InterviewWorry · 18/09/2022 11:40

Just split the bills. I wouldn’t try to profit from him moving in.

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Truthseeker456 · 18/09/2022 11:45

Just split the bills , your more likely to protect your inheritance that way.

Dsisproblem · 18/09/2022 11:45

Agree, just split bills. You both have spare money to save.

ChillinwiththeVillains · 18/09/2022 11:48

I think, although don’t know- prob a time when a lawyer would be worth calling- that charging even a nominal rent means that they are a lodger and so have less rights to stay or make a claim on the house if you split up. But that is based on a friend having to pay out to an ex who had lived in her house rather than any legal expertise.

Chdjdn · 18/09/2022 11:48

Split bills; it would make me uncomfortable to take or give money for “rent” in this scenario

WOPTF · 18/09/2022 11:49

Split the bills. I feel like I'd not want him to contribute to upkeep/repairs/decorating so it's all yours but that's maybe mean and cynical. But you need to protect your assets, and if he isn't paying rent then he can save for any future housing needs he may have if the relationship doesn't work out.

whitefences · 18/09/2022 11:50

Just split the bills. It's really fair if you are profiting from him because you were fortunate enough to inherit a house. And for the love of god make sure you have documentation and a contract that shows you own the house. Don't let him contribute to anything that belongs to the house itself that means he could later make a claim.

DH owns his house. I sometimes pay for something house related but we have it in writing that I don't profit from this nor can I make a claim later. Personally I think it's only fair I do this and it makes our lives comfortable now.

Crinkle77 · 18/09/2022 11:52

DH owns his house. I sometimes pay for something house related but we have it in writing that I don't profit from this nor can I make a claim later. Personally I think it's only fair I do this and it makes our lives comfortable now.

Please tell me you also have your own house or one that you co-own with your husband'.

Crinkle77 · 18/09/2022 11:56

Anyway OP I'd go for A. It's not fair to charge him more. You should pay for any big household repairs like new kitchen or bathroom. It wouldn't be fair to ask him to pay to something that might increase the value of your home if he has no right over it.
.

Pemba · 18/09/2022 11:58

I agree that you shouldn't profit from him, so I'd say just split the bills. Also that means that if you did split in the future he wouldn't have any claim on your house.

But encourage him to save for his own future and financial security. You will be enabling him to do this whilst protecting your own asset. I think that's the fairest for both of you.

Dacquoise · 18/09/2022 11:58

If you are not planning to get married I would seek legal advice and have an agreement drawn up to protect your house. If the relationship breaks down in the future would you be happy for him to have a claim on your inheritance?

Regarding finances I always think there is a cost to maintaining a house so if you don't charge him anything he's effectively got free accommodation at your expense. Most people house themselves via a mortgage or rent. Again, any rent needs legal consideration regarding future claims on the property. Bills split 50/50.

PeekAtYou · 18/09/2022 12:01

Split bills so he doesn't have a claim on your house later. I'd also set up a joint savings account for things like holidays and have a personal savings account for other expenses

Lilithslove · 18/09/2022 12:02

I wouldn't want to move in with a guy who had inherited an house and who wanted me to pay market rent so he could invest it. Especially if he already had much more security than me!

Luckydip1 · 18/09/2022 12:03

You must get a lawyer to write up a cohabitation agreement.

Blueberrywitch · 18/09/2022 12:06

Definitely just split bills! Let him save what he would have paid in rent to get more savings for himself. I don’t agree that you have a joint savings account if not married, just keep your finances separate.

NoSquirrels · 18/09/2022 12:07

Split the bills.

You’re better off by 50% of bills. You retain an asset.

He is better off by rent + 50% of bills, but has no asset and no security of tenancy.

You remain responsible for house repairs, maintenance and upgrades. You need to save for that.

He should save for his own future.

KangarooKenny · 18/09/2022 12:08

Be careful about what he pays as you don’t want him to have any claim on the house further down the line.

k1233 · 18/09/2022 12:15

Treat it like a rental - you cover landlord costs, you both cover tenant costs, he pays rent.

I would charge him rent equivalent to what he'd pay on a house share - as that is effectively what you are doing. That is because there will be more wear and tear on the property. House related bills would be yours to pay but utilities and food etc shared 50/50. It's your property so property related costs are yours, hence charging him rent.

Littlegoth · 18/09/2022 12:17

Fizzgigg · 18/09/2022 11:38

I think I'd split bills and then both pay into a rainy day fund - so less than rent but something towards upkeep of the house like decorating or repairs. Then he can also save to invest money of his own so if you ever split he's not totally shafted and broke.

If both are paying into this sort of thing then in the event of a split, he would be entitled to a share in the property as he would be able to show he had directly paid for repairs and therefore had a financial interest in the property. Definitely don’t do this, OP should pay for all repairs/maintenance/improvements.

Pleaseaddcaffine · 18/09/2022 12:18

I did this, got a legal agreement drawn up and protected my assets. He paid nominal bills at 350 a month and had no claim on assets but any repairs eg new tap etx fell to me soley to pay for not him. Movable items eg dishwasher etc fine for contrabution but not fixtures or painting etc
Get advice - it was under 500 quid for advice n the document

Luredbyapomegranate · 18/09/2022 12:19

If he's not in a position to get a mortgage then you are in a much better financial situation than him. If I was him I wouldn't want to move in with you if you wanted to charge me rent and invest it.

To be grown up about it, you should both think about what happens if you split up in 20 years. Where would he live?

The best idea might be that the money he pays in rent should go to buying a buy to let flat (joint mortgage) and you draw up an agreement that if you separate that's his to sell or live in.

So I'd split the bills, use his rent money to secure his future - if you don't split up it's a nice pension pot. If you want to maintain the house as yours I think you should have a separate account for house works and for that yourself (check this with a solicitor.)

You should go see a solicitor and possibly a financial advisor to sort all this out. I know it seems awkward but it's so much better if you talk about it and everyone knows they are secure.

whynotwhatknot · 18/09/2022 12:20

I would look into getting a legal agreement drawn up saying he has no claim then just split the bills

Luredbyapomegranate · 18/09/2022 12:21

...Also - this stuff can really corrode a relationship, so I think it's important to jointly think about what's best for both of you, and what you are both happy with.

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