Notifications
Clear all
Scottish Trust Deed Forum
5
Posts
3
Users
0
Reactions
1,414
Views
Topic starter
27/05/2009 11:23 am
Some weeks ago I posted a question regarding moving from one rented property to another while in a trust deed.
As it turns out, my situation is now somewhat different as my fiancee may be in a position to buy a property on a shared equity scheme. This is something she would undertake on her own and while we would still be co-habiting, the mortgage would be entirely in her name. Technically I would be a lodger, paying my fiancee rent each month, equivalent to 50% of the mortgage repayment.
I am wondering how the above would affect my Trust Deed? Presumably I would have to inform my Trustee that my living situation had changed, and I would also assume that my partner would need to draw up some kind of lease / rental agreement?
It is likely that the mortgage repayment is going to be somewhat less than we are currently paying in rent, and therefore I assume that my trustee would look at adjusting my monthly Trust Deed payment as a result of that.
Can anyone confirm/deny the above, or offer any further advice? This is all a bit daunting!
27/05/2009 12:59 pm
Hi imcville,
That sounds like a positive development.
You can get basic rental/tenancy agreements from stationers and stores like Office World / Staples. If you want something more specific you may need to speak with a solicitor.
Mark and Kevin's view on the adjustment to the Trust Deed will be interesting. Will the Trustee expect that imcville pays half the housing costs....or is imcville's fiancee entitled to charge a commercial rent figure that would be recognised by the Trustee for the purposes of adjusting the monthly payment?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
27/05/2009 1:45 pm
Thanks for that - by "commercial rent figure", do you mean a sum that encompasses not only what I pay to my fiancee in rent, but also my 50% contribution towards council tax, bills etc?
That sort of arrangement would be my preferred option - at the moment, all housing costs are in my own name so I've got a multitude of things coming out of my bank account each month. If it could be stripped down to just my Trust Deed payment and a single payment to my fiancee each month, life would be much simpler!
Apologies if I have totally misunderstood!
28/05/2009 5:16 pm
I guess what I was wondering is how the situation would be judged by a Trustee if your partner decided to charge you the commercial rent that would be charged to occupy the property rather than splitting the costs down the middle.
By commercial rent I mean the amount that you might expect to pay in rent for a similar property if you were not connected to the owner (other than being a tenant).
This amount might be different to 50% of the combined costs.
I don't know the answer but I'm sure Kevin or Mark will be able to give us their thoughts soon.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
29/05/2009 12:17 pm
Hi both
I think as long as you have a reasonale monthly expenditure for household bills, rent etc, then this shouldn't be an issue. As TDA assistant said, this would be more realistic than drafting up a commercial rent amount.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
