AIBU to ask DP for rent?

[FairOrNot18]

We’ve been together a year.

I am a homeowner, he is not. We’ve been talking about living together abs exploring options such as renting my place out and renting a bigger place together.

However my house is ample big for the both of us and so it makes more sense for him to move in.

We are now talking about how to work this out financially. Rental for a similar place would be £1000 per month.

WIBU to suggest he pays £500 a month inclusive of all bills? Or is that grabby?

WWYD?

[Adnerb95]

I don't get this at all. Surely, in the relationship you simply work out your TOTAL costs and - unless there is a big disconnect between what one partner earns and the other, you simply contribute equally.

Maybe even have a joint account and all earnings go into this and all expenses are paid from it! Simple.

[FairOrNot18]

Ok, so how about I sell half the house to him then?

Then we’d be 50/50 on the deeds and mortgage.

How would that work in reality though?

Any conveyencing solicitors our there who could advise?

[Adnerb95]

Er, Monty - the OH has not said anything and why would he do WHAT?

Yet, on the basis of zero information, you have decided he's a conman. Wow!

[Thisreallyisafarce]

Not sure you can sell half the house to him. He could buy you out of half of your equity in the house, then you could put him on the mortgage?

[MrsTerryPratchett]

But if they contribute equally, he pays while she gains equity.

[Rebecca36]

No, don't do that. Keep your house as yours until such time as you feel sufficiently confident in your relationship to let him buy half.

I think your original suggestion of £500 per month for utilities is very fair to start off with.

[Adnerb95]

Yes, take advice OP - the equalisation of assets might be a good way to go.

[Monty27]

Sell half the house? Minus equity?
I think he's seen you coming

[FairOrNot18]

Ok. Now I know you’re talking nonsense @Thisisafarce because even with my limited knowledge I know that he can buy me out my half! But thanks for taking notice of this thread.

[FairOrNot18]

No, I mean get the house valued at current market rates and remortgaged accordingly. He pays me the difference.

[FairOrNot18]

That last post was to Monty btw

[Thisreallyisafarce]

I don't understand. Genuinely not trying to be thick - though I might be. Are you suggesting, if your home is worth 300k, that he pays you 150k, then you both continue to pay the mortgage? Where does his money go?

[Monty27]

Indeed I have Adnerb95
I hope to be wrong.
Read it your own way and let me read it my way. Without attack

[Thisreallyisafarce]

Right, I get you. No need to be so touchy, by the way. I'm not "talking nonsense" - I just didn't know what you meant.

[Antigon]

I despair.

[FairOrNot18]

@Thisreallyisafarce
Yes. I have 25% equity in the property and so he pays me 50% (by way of loan/mortgage) of which I pay 25% to pay off the original mortgage. This would total 50% of the total current market value.

He and I then remortgage for the full amount but go 50/50. So we both have equal equity in the house.

[Thisreallyisafarce]

Sounds like you have it all thought out. Does he have that kind of money?

[FairOrNot18]

Yes he does

[Thisreallyisafarce]

Great. Looks sorted to me.

[Monty27]

Good luck OP

[Cutietips]

I’m not sure if this works but my initial thought was that I’d try and split the benefit. So, if the average cost of a rental is £500 per person, he gets half the benefit of not having to pay that whole amount , i.e. £250 and you get an equal benefit towards your mortgage, i.e. £250. Then you split the bills completely down the middle, including council tax, water rates etc, which he’d have to pay in a flat share anyway. But you still have to pay for major maintenance and repairs. Surely that way you're both getting equal benefit? But I would get a legal document to state that he is not paying towards the mortgage so would not be entitled to any equity. I’d also try and be fair to say that we’d renegotiate the arrangement after a year with a view to putting him on the mortgage and him buying out half the equity if you plan to stay together.

[FairOrNot18]

Question is though, by selling half the house to him in this way, will we be subject to Stamp Duty? On a property of this value this would be around £10k!!!

If so, it would actually make more sense to ask him for the £500 per month rent.

I just don’t know what to do!

[FairOrNot18]

That’s a very good suggestion @Cutietips.
Thank you!

[TheBlessedCheesemaker]

Rent your place out and then rent or buy somewhere else together. Easier and more romantic. Also, if you then get married it stays as an investment for life (or as a pre-marital asset in the divorce courts...)

[Peridot1]

Well firstly it’s not rent. It’s contributing to the expenses of running a house. Together. As partners.

Obviously you don’t think you will ever break up but it’s sensible to take proper legal advice to protect both of you. As unromantic as it might seem. So I would start with that.

And then an open and honest conversation about where you both see things going. What your options are. Staying in the current house. Selling and buying something together. As you suggested you keep it and rent it out and rent together - that seems like a good idea as you protect your asset and yet you have a good opportunity to see how it all works living together and managing finances together.

If you can’t have this conversation you are not ready to live together.