Moving in with dp/mortgage!

[Blahdeblah111]

Hi, wondered if anyone has any advice on a logistical solution to this through going through it themselves.

I have a mortgage and have done for 3 years, dp and I are thinking of moving in together after xmas. Into my house. I won't expect him to pay towards mortgage, just bills etc..

Just wondering how this will work further down the line.. I.e if he gets on the mortgage? Because obviously I've contributed a larger amount to the house.

Anyone any tips of how they did it??

You can get a deed of trust drawn up which basically says how much of the home you own and how much he owns.

Tbh if you've only paid for three years I suspect you haven't paid that much of the capital.

Although without knowing the full details I should just shut my mouth!

Also I would actually charge him rent! Even if it's £100 pcm.

Haha no I know! I haven't paid much mortgage wise, probably be paying it until i'm 80!!! But obviously it was my deposit..

While he's just living in the house with you and you're not married, he has no rights over the house. If you get married it's different - he becomes entitled to half in the event of a divorce - all your and his property / money would go in the pot to be divvied up at that point. So you might want something in writing if you get married, to protect your deposit. Or if you don't get married but decide he will buy into the house with you, then you also need a deed of trust. Basically you need to see a solicitor to sort it out in either of those scenarios- the paperwork should be fairly straightforward though.

When you take out your mortgage together they will ask you about this. Well your solicitors will and you just state what you paid in and they just proportion the percentage to each of you. It's only one form. Easy and quick.

why wouldn't you charge him rent and bills until such time as you were ready to go into a property together? You know, like he would pay anywhere else he lived.

Oh i'd charge him bills. I'd still be saving money on that. I just think it'd be unfair to expect him to pay into my mortgage haha.

Blahdeblah - I'm in the same position. I guess it depends where you live and how much your bills and outgoings are.

I'm the same in that I don't want DP to contribute to the mortgage when he moves in, as I'm a bit precious about it.

My mortgage and bills mount up to just over £600 a month (I'm in the north). This will increase when he moves in as my council tax will increase and so will gas, electric and water but probably by no more than £100 a month maximum. We've agreed he'd pay me £200 a month towards bills and we'll set up a joint account together for food shopping. However, that matches our circumstances. He's currently paying for his PhD course at uni and earns 25% less than I know, and he's also keen to save for his own mortgage. So for us, £200 and splitting food bills make sense.

This is the same situation that I am in - dp has moved in to my flat

My mortgage is £840 and bills are about £200 pm. So I put in £800 and he puts in £500 to an account which I set up especially for the house (ie, it doesn't have anything else coming or going). The overpayment of £300 pm then goes towards one food shop a month and has built up really quickly meaning that we will use it to pay for a holiday for us

I did get him to sign something to say that he was only paying towards bills and a token amount for rent, just so that if the worst does happen, he wouldn't be able to claim on my mortgage (not that he would I am sure!)

It's a situation that works really well for us as we set it up at the outset

I felt the same as you about the mortgage issue but at the same time, he needed to pay something. This way, we both save £300 pm on what we were paying before each.

He has the deposit to buy somewhere so what we will probably do is buy somewhere down the line together with his bigger deposit, then my flat in to BTL and then split all the costs of the other mortgage and the income of this place

Hope it works out well for you, living together is so lovely, I love having him around all the time now!

I just think it'd be unfair to expect him to pay into my mortgage haha.

Why not? If you were renting the place out then the rent would go towards your mortgage...if he wasn't living with you his rent would go towards someone's mortgage.

People renting a property aren't entitled to a share of the landlord's property when it is sold; it's the same thing.

What is it with the 'paying into my mortgage' thing?

He won't be, he will be paying you for his upkeep. That includes the roof over his head. As Doreen said, you don't get a slice of every home you rent!

If he pays for improvements then he could claim something. But not for paying his way.

No man worth his salt would accept living rent free. So add a reasonable % to his cash input. No need to martyr yourself, just put a figure on it.

If he pays towards the mortgage, and can document this, that raises the possibility that he will acquire an interest in the property- ie a share in any equity. For that reason, OP is being sensible not to want him to do it at this stage. It's more about being canny than being fair.

Blah, further down the line the best thing would be to decide how you want things to be split and take legal advice. If the two of you do eventually want him to jointly own the property, you'll need to consider what the split will be. If you don't want a 50/50 split, for example if you want your share to be bigger to reflect your deposit and having spent more time paying towards the mortgage, you'd need to be tenants in common rather than joint tenants. Joint tenants is equal shares.

conversation.which.co.uk/money/mortgage-squatters-common-law-spouse-renting/

Quote: According to The Co-operative Legal Services, there are no specific laws in place which protect the partner paying the rent if things should go wrong. Many people believe that they’ll be viewed as ‘common law spouses’ if they live with a partner, but this isn’t the case.

Or www.lawsociety.org.uk/for-the-public/common-legal-issues/moving-in-together/
Quote: If you move in with someone and the house is only in their name, usually you have no right to the proceeds from selling the house. This applies unless you can prove:

you have contributed to the deposit for the house or the mortgage payments, or
you have made a financial commitment (for example, paying for major work on the house) because it was agreed you would own a share of the house.

If you don' buy as joint tenants, his name is nowhere on the deeds, he won't have call on the house.

There are stories, like this one
www.theguardian.com/money/2010/jun/20/mortgage-warning-unmarried-couples
but they were joint purchasers, which, seemingly, makes all the difference.

Of course, the Law Society could be wrong and the MN myth could be right!

I owned my own house when I met XH and when he moved in we split all bills equally apart from the mortgage which I continued to pay on my own as i didn't want him having any claim on the house.

When we married and moved house, I paid for 1/3 of it outright. I stupidly put the house in equal shares, on solicitor advice as it was "easier" to be joint tenants than tenants in common. Our wills reflected 2/3 to my family and 1/3 to his, but the house was owned 50/50 legally.....

BIG mistake. When XH walked out he was instantly entitled to 50% of the equity despite never having paid a penny towards it. Luckily for me he did the decent thing morally and signed it over to me.

So from a totally cynical once bitten twice shy point of view... please do protect the share that is yours at the point that you become joint owners, and make sure that you own the larger share via Tenants in Common.

Don't put him on the mortgage - why would you?