Do I pay rent on the side of my house and live in?
Initially I bought a house with friends 50 / 50 six years ago. We both lived in it until a few months ago in which he moved. The house was remortgaged three years ago. At the moment I have one eighth of the property to sell to my friend, so he has the standard ‘s and my own 3 / 8 “5 / 8 s of the property. He took” extra credit “under both our names on remortgaged and gave me some of this money (with a value of 1 / 8 at the time) and pay back this loan an additional “interest only” self. Right now I pay ‘s mortgage, while she pays 5 / 8 “3 / 8 s. I also pay the cost in” Rent. “My question is, do I have to pay her rent and if so, what percentage or how much is fair?
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February 15th, 2011 at 1:55 am
no you should see a shrink for getting yourself into this web….
February 15th, 2011 at 2:17 am
Wow how could u agree to pay additional rent when ur already paying ur share of the mortgage. Now that friend is pocketing ur money. it might actually be time to sell the rest of ur share in the house and getting one on ur own
February 15th, 2011 at 2:35 am
Technically you should be paying a comparable rent for the house, but only for the 1/8 of ownership you sold to your friend which works out to be 12.5% if you are not open to sharing the property with you friend or allowing him to move in a tenant of his own. If you demand to keep the property for yourself, you should be paying 62.5% of a comparable rent. But ultimately it is what ever you and your friend can work out to make everyone happy.
February 15th, 2011 at 2:58 am
If the 1/8th is in both your names, you could end up liable for all of it if he stops paying – urgh!
I suggest you get your solicitor to sort this out. Obviously, you should be paying something – presumably 3/8 of an appropriate rent for the area. However, if there are problems or maintenance that the landlord is responsible for, then you and your friend should split those costs 3:5.
Has your friend considered the tax implications of accepting rent off you?
I would be inclined to sell your 3/8 of the property and move out – or at the very least, turn your rent agreement into a formal arrangement because it sounds very risky at the moment.
February 15th, 2011 at 3:01 am
You should be paying your fair share of the mortgage. You don’t pay rent on something you own fully or in part