So, hoping to get an outside and independent view on this. My gf of 3 years has left her job in her home town (a german multinational manufacturer in a town of 200k people ), to move to London, taking a job at a nasdaq listed giant.
During discussions about our living arrangements, the options were:
1) I buy a 2 bed in central london (my parents are providing a huge deposit for me on loan, so I can afford to buy off a single income.
2) We rent until she is able to join in on a mortgage and buy off two incomes (requires X months of continued income in same company).
When I walked through option 1 she was surprised that I would consider charging her rent (mates rates) for living there for the first year (afterwards would join the mortgage), and was expecting to cover groceries only or similar based on the sacrifice she was making for changing jobs and that if she didn't have to move she would be buying her own place in that town. My "scenario" without her would be to rent out the second room for £800-1000 a month.
I'd imagine quite a few people here have been in something similar to the above scenario, especially given that the geographical distance for moving in the US between cities is similar to countries in Europe, so was hoping to benefit from the diverse range of opinions this place generates.
I was in a similar situation with my boyfriend. My parents are lawyers so thankfully were around to draw up watertight contracts - I'd advise you to do to the same.
Points to consider (UK Law):
1) If you charge her rent (even mates rates) she will be entitled to some tenant rights - which will complicate things if you break up and want her to move out
2) If she contributes money for property improvements (e.g. new boiler, things that will improve the value of the house) then she could eventually be entitled to equity in the property.
3) Considerations for if you die. Morbid I know, but very worth considering. Things such as whether you would want her to continue living there, what your parents will expect.
Hope that helps a bit.
Charging mates rates for the option 1 is basically a fair practice from financial/Asset Management perspective, nothing wrong with that. It's just that things are becoming more complicated because you're dealing with your girlfriend, there's an emotional factor to consider, equality in relationship, etc.
Perhaps you might want to try the idea of reframing the mindset. What would each other proportion/contribution be if she join the mortgage since the beginning? Say 60:40? Then buy the property with your parents' deposit on loan, and reframe that both of you (not only your girlfriend) pays the rent, in which you could use the combined rent payment fund as an installment to pay back the loan to your parent or use it for other purpose as agreed by both of you and your girlfriend. This is like you're taking option 2 (in your mindset) by doing option 1 (in actual). This could be a temporary solution until she could join the mortgage later on.
It's just an idea, hope it helps a bit..
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