1. What is Shared Ownership Rent?

Shared ownership rent is the amount paid monthly for the portion of a property that you don't own in a shared ownership scheme. It's calculated based on the value of the unowned share and an agreed rent rate.

2. How Does the Calculator Work?

The calculator uses the shared ownership rent formula:

Where:

• \( Unowned\ Share \) — Percentage of property you don't own (e.g., 75%)
• \( Property\ Value \) — Total market value of the property
• \( Rent\ Rate \) — Annual rent rate percentage on the unowned share
• 12 — Months in a year

Explanation: The equation calculates the annual rent on the unowned portion of the property and divides by 12 to get the monthly payment.

3. Importance of Rent Calculation

Details: Accurate rent calculation helps potential shared ownership buyers understand their monthly costs and budget effectively for this type of property purchase.

4. Using the Calculator

Tips: Enter the percentage of the property you won't own (e.g., 75% if you're buying 25%), the full property value, and the annual rent rate percentage. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is shared ownership?
A: Shared ownership is a scheme where you buy a portion of a property (usually 25%-75%) and pay rent on the remaining portion.

Q2: How is the rent rate determined?
A: The rent rate is typically set by the housing association and is usually between 2-3% of the unowned share's value annually.

Q3: Does rent increase over time?
A: Yes, rent typically increases annually in line with inflation or a fixed percentage as per your agreement.

Q4: Can I buy more shares later?
A: Most schemes allow "staircasing" - buying additional shares until you own 100% of the property.

Q5: Are there other costs besides rent?
A: Yes, you'll also be responsible for mortgage payments on your owned share, service charges, and normal household bills.