Hi All

Can someone please tell me that when living with someone (soon to be married) and the other person owns the house (which is the case) and that I have no interest in the house (documented) is the running costs I.E. Elect, Gas, Rates etc from a joint account admission that you have an interest in that house.

I would have thought that running costs are running costs no matter where you live.

Am going through a shortfall with the B&B at the moment... but do not want to put my partner at risk...

Can someone advised please?

Regards Gary

-- Gary (j.jbbloggs@btopenworld.com), July 02, 2003

Answers

Gary,

If you have no documented interest in the house, then you have no interest in the house, the B&B cant touch it.

Your running costs are your running costs, which as you state would be required, regardless of where you live.

Have you followed the advice on this site, including the do's and dont's section ? if not, do so, its worth your while.

Rgds

John

-- John (sharky_john@hotmail.com), July 02, 2003.

Hi Gary,

I am in the same position as you with my fiance (he is the one with the alleged debt) but I do keep all costs separate. Luckily we also get paid on different days so although we have a joint bank account a standing order is taken from my salary which is paid into a bank account in my name only from which all housing costs, mortgage, electricity, gas even the cable and phone bill is taken so that he cannot be held accountable for anything. I would say that they are so sneaky the banks they may try and suggest that as you have contributed towards the running costs you must have an 'interest' in the property and if you were to separate (they always look on the bright side) you could claim that you had contributed towards it. I don't know if this is right but where these b*****s are concerned I'm always wary. We have also decided that before we get married we are going to set up a pre-nuptial agreement which states he has no interest in the property. As you so rightly say you don't want to risk what your partner has also accumulated, nor do you want to risk what you are going to accumulate together. I have a couple of mates who are lawyers and they advise that when you marry the law changes yet again so it is advisable to get a pre-nuptial. Hope this helps.

-- Chris (chris@anon.co.uk), July 03, 2003.

Hi,

Sorry Gary forgot to also say that when my fiance gets paid I take a chunk of rent money and pay it into a savings account in my own name which is then mine to do as I wish with - if you see what I mean ....

-- Chris (chris@anon.co.uk), July 03, 2003.

Gary,

I think Chris is right about being wary. A solicitor had the following to say about it........

"This can be a complex issue.

A beneficial interest can be gained if there is a specific agreement that one pays e.g. utility bills, e.g to allow the other to pay the mortgage. However, a general contribution to running cost is unlikely to produce a beneficial interest.

Also, the rules are different for different areas of the law - it is different in family law to insolvency law. In the latter, it is more difficult to gain a beneficial interest without having made a direct financial contribution to buying or improving the house, although a specific agreement as mentioned above may be enough. The rights of a non-owner in a family law situation are different - the non-owner is likely to have greater rights. We usually refer people for expert legal advice from a family solicitor or an insolvency practitioner

Re shortfalls, I think that it is very unlikely that a lender will try to pursue someone with no legal interest. If the house is in the sole name of one legal owner I have never came across a case where anyone else has been pursued unless there has been a specific guarantee involved.

I would have thought that Gary's partner is safe as long as she stays sole legal owner.

Hope this helps"

Mark.

-- M Amos (idgroms@hotmail.com), July 03, 2003.

Really just to repeat earlier answers, an interest in a property can only be created by agreement or conduct. Since there will be absolutely no evidence of any agreement giving you an interest in the property, conduct is all thats left.

In order to get a share in a property as a result of conduct you must either pay the mortgage OR carry out substantial repairs or improvements to the property (routine decorating and ordinary maintenance is not substantial but paying for new windows or personally doing an extension would be). Therefore simply paying the utility bills wiil not afford you any interest in the property.

You could also consider setting up a rent agreement, forms are cheaply available at places like WHSmith, just make sure that whatever you pay is paid into a different account to the one paying the mortgage and whatever you do dont pay the mortggage directly!

-- Bob (bob@divorceco.com), July 03, 2003.