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The most important issue for your daughter is to contact her lender in the first instance and ask about their requirements, she should be very carefully not to breach the terms of her mortgage either wittingly or unwittingly. Prior to the his occupation they will likely require that he sign a simple Deed of Postponement stating that he will not acquire any rights in respect of the property and will vacate upon sale. If he is not contributing directly to the mortgage payments then your daughter should be fine.
Though it is somewhat dry and clinical, she should really consider getting a licence for a lodger drawn up to clarify his rights and protect her interests. It is fair to both parties and she should impress this upon him. You can get licences and information by paying a (relatively cheap) fee from the following sites:
I think your right to have your daughter's position in mind, better to have clarity at the beginning.
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Sorry, I should also have mentioned a way forward that may be more suitable than the lodger arrangement. Your daughter and her partner could enter in to a co-habitation agreement. This would set out the details of his living at the property, such as:-
1. The length of time it will cover
2. How you will treat the property owned by your daughter
3. Whether your daughter's partner is to acquire any interest in the property
4. How any property acquired in the period of cohabitation will be shared equally or proportonally
5. The effect of the co-habitation ceasing
6. Whether they intend for the agreement to be legally binding.
You could speak to a local solicitor to get a draft drawn up, both your daughter and her partner will need to take independant legal advice prior to entering in to this agreement.
This is probably more suitable than a lodger agreement.
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