I am single and own my house. What could be the potential pitfalls of a new partner moving in in the future?

[Shitshape]

I am single and own my own home. My ex was a financial liability, and so moving forward, I have vowed to not compromise mine and DS's financial health and security again by intertwining my money, in particular my assets, with any new partner (beyond the usual joint account for day to day spending stuff). I just cannot take that risk.

Another thread I started yesterday about something else raised some issues around this. I would like, at some point in the future, to be with someone again, and possibly to live with them. But if they move in with me, apparently, depending upon their contribution to the home (fitting a kitchen, DIY ... mowing the lawn?!), they can later stake a claim to the increase in value/equity of the property. Even, presumably, if they've paid no rent/mortgage.

I need to know exactly what the potential pitfalls are here. Could I charge a new partner a low rent to at least help cover the costs of the mortgage/maintaining the home? Otherwise, he'd be living cost-free yet still be contributing to the wear and tear of the house. And I could make sure I do all DIY/maintenance myself or outsource it, couldn't I? It just doesn't sound straightforward writing this, but rather defensive, which doesn't make for an easy, healthy relationship. Hmm. What do I need to know about in this scenario? How could I handle it in a way that would be fair to all concerned and risk-free (financially) for me?

Thanks.

If UNmarried, if you split up and they can PROVE (onus is on THEM)that they have somehow contributed to upkeep of property, they may have a claim.
I believe that paying anything not DIRECTLY related to property such as groceries and looking after children doesn't count.
I think it has to be DIRECTLY to do with property itself.

If you really, really wish to keep things 'safe', I'd perhaps charging a future partner rent- with proper rent book and so on. I'm sure this is not that difficult to do. Worth getting advice in real life (short-term cost of doing this could mean you avoid pain of losing home in future).
They will then be a lodger in your home and even if you were to split up in future, the courts are under no obligation to take into account couple's interpersonal relationship as regards division of assets if UNmarried.
He will have been seen as just a lodger.

If MARRIED, it is a totally different ballgame.

Totally different -if you really want to keep your home your own DO NOT get married.

Agree, charge him rent. This is really easy to do and can be tax free as you're allowed to earn £4,250 a year from renting a room in your own home without having to declare it to the tax man. It will be his contribution to the mortgage without him getting a right to any of the house.

I began a similar thread several months ago and got some very good advice. I've linked to it below.

My Thread

I ended up going with the Lodger agreement which we've both signed. I'm also looking into a co-habitation agreement.

Hope this is helpful

Well I've just read my thread again and it's not as relevant to your situation as I remembered!

But there are still several posts which give good counsel, from Marantha amongst others

The points I took away were:

1. Do not get married.
2. Make a will.
3. Ensure that you have a tenancy or lodger agreement.
4. After 2 years living together if you die he may still have some claim on your property even if you do have an agreement. And finally,
5. If it goes to court anything can happen whether or not an agreement is in place and rent is being paid!

Re the joint account - would you be liable for any debts he run up - as your finances would be linked?

Thanks for posts.

The lodger/rent route seems to make good sense. I just can't believe that even if I didn't marry a new partner, we had no children together, we each worked and were financially independent, and we had a lodger agreement, he could still stake a claim to the equity in my house, which he'd have done nothing to pay for/earn. I think it's different if you have children, if one of you stays at home to look after those children, and/or if you marry. But really, that's incredible!

Some useful tips, though. Thanks. No wedding for me then, ever. But I'll get over it. :)

Hmm. I don't know, Rentatoast. None of this is relevant yet, BTW, but I guess it could become so in time, if I meet someone, and forewarned is forearmed and all that.

If you have a lodger, you don't have to charge within the tax-free band do you? I mean, if for example they have their own kids and so they have a bedroom in the house for when they stay with their dad, you'd reasonably charge over the tax-free £4,250.00, wouldn't you?

would it not be better to both move in to a rented house, that way if you split up - you go your way and he goes his, or buy soemwhere else for you both to live (meaning you rent out your property to find the rent/mortgage)

Good point ivykaty44. But I love my home and DS is very settled here and I can afford it. Apart from in the financial-prudence-because-of-new-man respect, it makes no sense to move out.

shitshape I am happy to be corrected by someone who is more knowledgable, but I agree with you- if NOT married and NO provable contributions made to property I find it hard to believe that a partner could have a claim.

This site is full of people who have been told that in spite of giving up work to become a SAHP for a number of years they are not entitled to partner's property (nor maintenance), so I would be very,very surprised if partner would have claim JUST because in romantic relationship (and bear in mind that these SAHPs do have chldren).

Really, I would be surprised. So I still think that a properly drawn up landperson/lodger agreement is a good option.

Sorry, the above should be UNmarried SAHPs.

No, you don't have to stay within the £4,250 tax free limit but any amount over that would be taxable.

I'm in the same boat. If a miracle happens and I ever meet someone else then I think I would rent out a house together.