Ownership of house

TheBurningMan

My partner recently moved in with me. I'm one of the lucky few that own a large chunk of their own house around 80% of it, there's a small mortgage left on the remainder which is very manageable.

My partner has a house of her own but still has a large mortgage on it around 90% of the value, which since she moved in some months back is just sitting there doing nothing (it's out in the country). Our idea was to sell that and buy a rental property.

The idea was that she would take her equity from her house and use it as a deposit on the new rental house and we would then split the mortgage repayments on both houses. All very straightforward

Since we both want to protect ourselves in the event of a breakup (god forbid) I suggested that we would both take out of the houses a percentage of what we had put into them. so for example in my house we broke up and she had paid off 10% of the mortgage and I had paid off 90% she would be entitled to 10% of the value when it was sold

The same would apply with the rental property.

My partner reckons this is unfair as she could just buy the rental property on her own and have her tenants pay the mortgage and live with me. I contend that THIS would be grossly unfair to me as she would only be able to do this because I would be providing an alternative roof over her head.

Can anyone see a fair an equitable way of doing this?

landser

TheBurningMan wrote:

My partner reckons this is unfair as she could just buy the rental property on her own and have her tenants pay the mortgage and live with me. I contend that THIS would be grossly unfair to me as she would only be able to do this because I would be providing an alternative roof over her head.

Can anyone see a fair an equitable way of doing this?

do this and let her pay you rent. you should ensure that she knows (and everyone you know knows) that what she is paying is rent and not mortgage and that she is not getting any equitable interest in the property... best of all put it in writing. btw, if you have kids, you can kiss all these agreements goodbye!

TheBurningMan

I've suggested this but she doesn't agree to it. no we don't have kids and to tell the truth after a few nights of dicussions like this I don't plan any either. At the end of the day we're a couple and we'd both like to share with each other and I think rent is a real stinker of a way of going about it, but I agree it seems the only way if she wants to go that route

In case anyone goes, why don't you talk to HER about this we have, we're going to get independant advice but I'd still like to hear any ideas people have

nesf

Meh.

Ok personally, I'd have no issues at all putting a roof over a partner's head. I assume you want her to live with you?

Her just getting the rental property herself is fair enough. Just because you are with her doesn't mean that you are entitled to a share of her assets. Same as she's not entitled to any claim on your house.

I think that keeping it seperate is the best course of action. If she wants to pay you "rent"* then cool, let her.

*by rent I mean, anything. From buying stuff for the house to actually having a rent book etc.


If you two get married then your assets will be merged anyways. Why bother merging them before that if it's not necessary? It's a lot cleaner and simpler if they are kept seperate anyways. This way you're not liable for the repayments on that house. They are her baby and responsibility.

Personally I'd prefer it like that. But thats just me. I like to keep my finances and my relationships with other people (excluding family in unusual circumstances) seperate. Money and assets do strange things to people.

Beruthiel

I suggest a solicitor

I just bought a house with my partner, our discussions went something like yours did by the sound of it.
however, as I used the profit from my apt. to help purchase the house, my solicitor suggested two thirds of the house was mine and one third his if we sell up. That seemed fair enough to the both of us.

If this is going to cause problems between the both of you, then yes, she should just pay a small rent and go ahead and buy the other house on her own. That way, in the end, ye both have a house.

TheBurningMan

Don't get me wrong, we want to live together, however I'll quite happily live in her house instead, but it would seem grossly unfair to me if I then rented my house out

zardette

Hi -

I shared with the hubie before we got married in the same way your are doing and I insisted to him that I pay for all the food for both of us .....

the fact that she is unwilling to contribute to you in some way in a little unfair

time to put the foot down !!!

IANOC

share or unshare my friend

you need to be firm and understanding..........if thats possible

TheBurningMan

In fairness we do split the bills on everything, however I agree with the other posters here who say if she wants to buy a house and rent it and take total ownership of it and live with me she should really pay me rent, wether that's in the form of paying for more of the bills or whatever I don't care.

IANOC

fair enough mate
just seems to me that its a "lovers" living like "Not so close friends"

best of luck whatever happens

TheBurningMan

No it's nothing like that, it's just we've both gotten burned with previous partners and houses and we want to avoid the possibility of that happening again

FX Meister

Rent out your house and go and live with her instead.

Victor

FX Meister wrote:

Rent out your house and go and live with her instead.

I concur.

I suggest you both get solicitors, not in a confrontational way, but to separate the legals from the love.

Take a look at this thread http://www.boards.ie/vbulletin/showthread.php?t=173124

TheBurningMan

article was excellent victor, thanks, problem has now been solved, thanks to all for their suggetions