First house and ownership question

[d8mok]

At somepoint within the next year im buying my first house. Ill be putting down around 50% deposit myself and will mortgage the rest in my name.

However my girlfriend is planning to move in with me too, but she wont be putting any deposit or paying any of mortgage. She is happy that should we split she would leave with no money from the house. However i need to make sure im in the clear legally.

However our plan is that she will pay some of the bills as a form of "rent". She will also put an amount of money herself into a savings account so should we split she will have some of her own money to buy her own.

I actually think we will be ok but i feel i need to cover myself, but also make sure she is ok too. We estimate she can save £500 a month herself as by me paying the bigger share she will be left with little outgoings. Should she have enough money in some years time she will buy into the house i expect.

Is there any way we need to go about this to make sure we are covered legally should the worst happen. Or is there a better way of sorting our situation.

Thanks for reading and any advice is good.

Dom

[Sarnie]

Get it all down on paper and documented with a solicitor if you fee the need.

Ensure that you charge her rent. Have her pay you a set sum each month and set the reference for the transaction as rent so it shows on your bank statements as 'rent'.

As part of the mortgage transaction she will have to sign an agreement to state that as a tennant she has no rights to the property or the equity etc.

[d8mok]

thanks for that,

Will it have any bearing on mortgages i can obtain by doing it this way?

Could she pay the bills herself so no money comes via myself?

[Sarnie]

d8mok said:

thanks for that,

Will it have any bearing on mortgages i can obtain by doing it this way?

Could she pay the bills herself so no money comes via myself?

It shouldn't hamper your mortgage options.

She can of course pay the bills herself; but to keep things very clear and simple I would have everything in your name and have the DD's coming out of your account and just have her pay you a set 'rent' each month.

[V8mate]

A female friend of mine split with her partner. They weren't married; he'd bought the house cash outright in his name only and they shared the bills.

I successfully got her 50% of the capital growth of the property.

[Sarnie]

V8mate said:

A female friend of mine split with her partner. They weren't married; he'd bought the house cash outright in his name only and they shared the bills.

I successfully got her 50% of the capital growth of the property.

Because she contributed to the mortgage? This is why the OP should pay the bills himself and charge her rent and not share the bills.

[GWC]

Says house was bought cash but had there been a mortgage and the property had entered negative equity, she would of course, I'm sure, have taken 50% of the shortfall

[Sarnie]

GWC said:

Says house was bought cash but had there been a mortgage and the property had entered negative equity, she would of course, I'm sure, have taken 50% of the shortfall

Missed the 'bought for cash' bit!!

The scenario's boil my p***!

[d8mok]

V8mate said:

A female friend of mine split with her partner. They weren't married; he'd bought the house cash outright in his name only and they shared the bills.

I successfully got her 50% of the capital growth of the property.

This is what worries me. Ive saved hard for many years , and dont want to be losing out if the worst happens.

So if i charge her rent, and i pay everything from my account would i still need a solicter involved?

Another alternative would be that we have an agreement to say the first £xx,000 is mine in case of a split. And then split all the bills down the middle inc mortgage?

[V8mate]

d8mok said:

So if i charge her rent, ...

Do you love her? Do you think she could be 'the one'?

I just find it odd that people would set up home together where one is tenant to the other. Sounds like the kind of scheme chav scroungers would do to increase their benefits-take.

If she's just a 'banker' until Ms Right comes along, you'll probably find Adultwork delivers better value.

[mx stu]

d8mok said:

Another alternative would be that we have an agreement to say the first £xx,000 is mine in case of a split. And then split all the bills down the middle inc mortgage?

I bought my first house with a mate and put down all of the deposit myself. I think we were set up as tenants in common which mean't that my money was protected. We then split all bills 50-50 and when we came to sell the house after a few years the tenants in common agreement kicked in and from the proceeds of sale we paid off the mortgage, I took my money and we split the remainder 50-50.

If you adopt the above scenario I presume you'd have to both be named on the mortgage/ deeds of the house.

[Sarnie]

V8mate said:

Do you love her? Do you think she could be 'the one'?

I just find it odd that people would set up home together where one is tenant to the other. Sounds like the kind of scheme chav scroungers would do to increase their benefits-take.

If she's just a 'banker' until Ms Right comes along, you'll probably find Adultwork delivers better value.

What an odd post. You find it strange that someone might want to protect what they have saved all their life for?

His GF might be potential wife material now but what about if she turns out to be a bunny boiler once they live together??

[CaptainSensib1e]

V8mate said:

A female friend of mine split with her partner. They weren't married; he'd bought the house cash outright in his name only and they shared the bills.

I successfully got her 50% of the capital growth of the property.

Feel sorry for her bloke to be honest, I can't see that she deserves a penny after living with him rent free. What a messed up legal system we have in this country.

[anonymous-user]

An hour with a solicitor now will save you a lot of possible grief in the future, just do it. Unless your married or at least engaged then you'd be daft to put it down to "trust". If your girlfriend gets the hump then tell her it protects both parties, if she still has the hump then you may wish to consider whether you want to enter into such an arrangement with her anyway.

[d8mok]

thanks for responses.

Yes i do think that she's the one. I have no plans to change our relationship but i still need to protect myself. She understands this, and agrees that we need something to protect both of us. I also want to allow her to build herslef sme savings up too. This way we both get what we need in our eyes.

In my eyes the house would be both of ours so its not like she would live in my house. The only time that i would need it to be mine if we was to split. Hope that makes sense. Im not too interested in houses and stuff so told her she can have lots of input into everything.

[blank]

Did you come to a decision in the end?

I'm potentially heading into the same situation.



What's the deal with the rent income and tax?

[98elise]

Sarnie said:

V8mate said:

Do you love her? Do you think she could be 'the one'?

I just find it odd that people would set up home together where one is tenant to the other. Sounds like the kind of scheme chav scroungers would do to increase their benefits-take.

If she's just a 'banker' until Ms Right comes along, you'll probably find Adultwork delivers better value.

What an odd post. You find it strange that someone might want to protect what they have saved all their life for?

His GF might be potential wife material now but what about if she turns out to be a bunny boiler once they live together??

Yup...50% of marriages end in divorce, so it seem very sensible to sort out the legal position when just setting up home together unmarried.

[Rick101]

V8mate said:

A female friend of mine split with her partner. They weren't married; he'd bought the house cash outright in his name only and they shared the bills.

I successfully got her 50% of the capital growth of the property.

Poor bloke.

Thats why I made sure when we bought together, EVERYTHING was 50/50.

[anonymous-user]

V8mate said:

A female friend of mine split with her partner. They weren't married; he'd bought the house cash outright in his name only and they shared the bills.

I successfully got her 50% of the capital growth of the property.

I know that the devil is in the detail but how can that be right when the guy bought the house? Unless it was in joint names?

[Sarnie]

50% of the property growth probably isn't a great deal and I assume the guy got everyting if put into the property back plus his 50% of the capital growth.....