1. What is Shared Ownership Rental?

Shared ownership rental calculates the monthly rent payment for the portion of a property that you don't own in a shared ownership scheme. This helps potential buyers understand their total monthly housing costs.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

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

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

3. Importance of Rental Calculation

Details: Understanding your rental obligation is crucial when considering shared ownership properties, as it affects your total monthly housing costs along with any mortgage payments.

4. Using the Calculator

Tips: Enter the percentage of the property you won't own, 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: Can the rent change over time?
A: Yes, rent on shared ownership properties typically increases annually, often in line with inflation or a fixed percentage.

Q4: 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.

Q5: Can I buy more shares later?
A: Most shared ownership schemes allow you to purchase additional shares (known as "staircasing") when you can afford to.