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?

[Summerbabygirl]

Fairornot that sounds like it would just be a change of borrower on your mortgage. Basically a case of getting him added to your mortgage as a joint borrower. May be a small fee depending on your lender and some conveyancing costs. If you’re on a fixed rate mortgage there may be some redemption fees if the new mortgage is less.

Do you mean for example-

House worth 200k, you have 50k equity. He puts in 50k then you amend your 150k mortgage to a joint 100k mortgage?

It’s 4am and I’ve been up all night with the baby so apologises if I’m not making sense!

[Aquamarine1029]

You would actually consider allowing him to own half of your property?? To what end? So he can fuck you over and leave you in peril? And your concern is "romance?" You must be mad.

[spudlet7]

Split all utilities and food shops equally then have him contribute a rental amount to a joint account as savings. That way, you benefit from his rent but it doesn't go towards your mortgage and he is contributing towards his future.

[FairOrNot18]

Your example is exactly it @Summerbabygirl

I’m just wondering how it works with SDLT etc.

[FairOrNot18]

@Aquamarine

No, he would pay his 50% share of equity

[Peridot1]

You have only been together for a year. You haven’t lived together. Don’t let him buy in yet. Spudlet7’s suggestion is good.

[Summerbabygirl]

www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

You will most likely be under the threshold for his share (unless the house is worth a lot)

[Aquamarine1029]

But why would you want him to be able to claim ownership of YOUR home? You barely know him. A year is nothing.

[Summerbabygirl]

Yes I agree it depends if your relationship is ready but there is a way to make it fair so you won’t be disadvantaged financially and you could actually reduce your monthly repayment if he can put in some equity.

[FairOrNot18]

@Aquamarine

I think you are misunderstanding the situation.

if I were to transfer ownership, he will have paid equal to the existing equity, plus be responsible for 60% of the ongoing mortgage.

It would be the same as if we had bought the house together from the atart

[FairOrNot18]

@Sumerbaby

Thank you for the link! That is really helpful. And you sound lovely btw. Hope your baby has settled now! X

[FairOrNot18]

50% not 60%

[Sally2791]

Absolutely draw up a legal document protecting yourself. He is contributing to living expenses not getting easy access to equity in your property.

[Iscreamforbenandjerrys]

The consideration paid would be the lump sum he gives you plus half of the new mortgage. So if he gives you £25k and the new mortgage is £50k, SDLT would be payable on 50% of the value of the house. It would be dealt with as a transfer of equity and remortgage so the conveyancing charges wouldn't be much different than if it was a normal purchase. HTH

[Summerbabygirl]

You’re welcome . You could reduce the term on your mortgage if he put in money to the house, pay it off earlier saving you interest in the long run. So it could work to your advantage if your relationship is long term.

Haha she is asleep but now I am wide awake. Typical!

[NotMyNameButHereForever]

There is no way I would give up owning my own home for this. You've been dating a year - that's nada in schema of things. I'd honestly rather keep my own place and rent it out, and then me & BF rent somewhere of 'ours' together. As a minimum that means you'll have lived together before you make any drastic changes to your own financial future.

[Monty27]

@Aquamarine1029
Just not me then phew!

[Mary1935]

Sorry I’m baffled. I’ve always seen on here that if your not on the deeds or married there is no entitlement to property.
You are being hasty after a year.
You may want to rent your place and move in together if it’s viable.

[AnnieAnoniMouse]

Do NOT give up sole ownership of your HOME.

That would be monumentally stupid. You’ve been with him 5 minutes.

If it was me, I’d suggest we go half on the essential bills - council tax, utilities etc and he could pay for any non essential bills such as tv packages, a cleaner & groceries (basically whatever adds up to roughly the same amount as the interest portion of your mortgage payment) while you continue paying the mortgage with a CLEAR paper trail showing all of this.Checking with a solicitor that that’s sufficient not to enable him any claim on your home.

He’s not getting anywhere on the property ladder, but he isn’t if you rent together either. If he has the money, as you say he does, then he could buy a separate house to rent out, or you could keep yours (rent it out) and buy something together as well.

But for the love of all things furry, do not give up sole ownership of your current home. That’s madness.

[Oliphantintheroom]

So he wants to ‘rent’ somewhere with you anyway, as in he is happy to spend dead money on someone else’s mortgage
so why not just do as you originally suggested and let him move in with you and pay you rent.
If your mortgage is £700 and you can already comfortably pay this off I would suggest he pays £250 and then split the utility bills.
I would say a lower amount so that he can’t claim to be paying towards the mortgage as others have said.
If you’re worried about it being unromantic maybe drop it into conversation to tests the waters first, or get something drawn up that he just has to go and sign

[Noloudnoises]

Good god, just live with him a bit and see how it goes. Do not start letting him buy you out of your house! Ask him to pay £400-500 a month. That is perfectly reasonable to cover a bit of your mortgage, bills and food etc. Then if it all works out or you get married, cross that bridge when you come to it.

I don't think he would have ANY claim on your house if you split. It would be like a room renter would have no claim either. Have a quick chat with a solicitor to make sure.

[Shoxfordian]

Don't transfer part of your home to someone you've only been with for a year, that's crazy. Probably the best idea is rent somewhere together first rather than him living with you.

[Eliza9917]

If you're not ready to go joint on all finances so it's all 'family money' then I'd rent your house out and then rent or buy another property to live in and split all costs for that down the middle. I wouldn't sell him half of your house.

Much easier imo.

[Cherries101]

If your DP was a woman I’d recommend a new place in joint names where you both have equal rights over. He should not be subsidizing your lifestyle.

[Angrybird345]

Jeez, you barely know this person! See a solicitor.