Poll: Moving a partner into an owned-home? Finances

[ov_sjo]

Scenario: Person A owns house, pays mortgage. Person B wants to move in. Not married.


Options for finances?

a) Split equity agreement and share mortgage payments at agreed rate for dual ownership

b) A pays mortgage, B pays bills

c) B freeloads

d) other?


Interested in hearing which options above, or others not listed, any of you folk have adopted.. and any potential challenges/risks associated..

 

[ov_sjo]

Oh i've lived with people in the past but it's always been rented. This is my first owned home.

 

[ov_sjo]

Or you can make the whole thing seem like you're more concerned with a future in which the relationship has broken down than you are with your future together.

Start things off on the right foot.

Most of my friends are paranoid about this kind of stuff. A few of them have been divorced, including one of my brothers, so I guess it can make you paranoid.

I always thought that if I met someone (again) who I would want to buy a house with, then I would sell mine/keep_as_investment and we'd buy something together. Not everyone wants to move into someone elses home.

 

[ov_sjo]

As said above, you should be speaking to the other person involved rather than a bunch of nerds.

This isn't a decision I am trying to make at the moment, it's a long way off. The thread was out of general curiosity on what people tend to do, if there are any common patterns etc.

 

[ov_sjo]

So re-visiting this one a bit... how is this for an option?

Partner moves in, makes no contributions for a period of time to see how it works out

Release equity from house into my pocket
+
Re-mortgage 50/50 joint owners at market rate


Now I appreciate that will effectively mean borrowing £80k (current equity) over 25 years, but some of the money will be used to plough back into the house and pay off some personal debts.

If I was 5, 10 years into the mortgage then this would be a horrible option, but as i'm only 2 years in.... doesn't seem so bad?

Thoughts..





(Ultimately I would change the mortgage product on this house to let-to-buy so I could buy a bigger house with the current missus but the lender would want all the equity to secure the loan and frankly I don't have enough spare cash to put down on a new place ~25k even using help2buy)