Paying utilities vs. renting?

hughtrimble · 6 Oct 2018 at 15:58

Afternoon Overclockers,

I'm due to complete soon on a flat purchase, and was wondering if anyone here has been in a similar situation, or is aware of how this works:

1. I am the sole purchaser of the flat and the only one paying the mortgage
2. My partner will be moving in with me
3. We will be splitting all costs such as the flat's service charge, power, heating, water etc. with the payments for these utilities etc. coming from my account, with money coming in from her to pay for her share (this keeps things like ownership clear, and before concerns are raised, yes I can afford to pay these in their entirety if we part ways)
4. These are the only costs she will be paying for

Does this count as me renting the flat to my partner? We are simply splitting the general running costs of the place.

Naturally, I am concerned about the implications if this does count as me renting part of the flat to her due to the lease, the mortgage type, the fees involved with formally renting from me and the tax implications of this.

Any clues?

Ace Modder · 6 Oct 2018 at 17:33

If you worry about splitting up in the future, don't move in with the person. That is my advice.

hughtrimble · 6 Oct 2018 at 17:37

Ace Modder said:
If you worry about splitting up in the future, don't move in with the person. That is my advice.

Hi Ace, I'm not worried or anticipating it, I merely mentioned that in there so comments aren't only about the possibility of affordability if we do part ways (which it is entirely affordable for me).

This is just about whether someone paying for half of utility etc. bills counts as renting really.

darael · 6 Oct 2018 at 18:36

I wouldn't count paying half of the bills as renting - just contributing their fair share. Al I would do is ensure that all the bills are in your name and come out of your bank account.

Kenai · 6 Oct 2018 at 19:05

Your mortgage company will likely want your partner to sign an Occupiers Consent Form, so that there is no confusion or argument about them having a legal interest in the property and causing your mortgage company grief in the event that you defaulted on your payments.

It doesn't count as renting though, so no need to worry about that.