shared ownership rent

Bevn

I live in a shared ownership house and own a 1/4 of the house - mortgage was paid off last year. We pay rent on the remaining 3/4 and i believe it is worked out as 3% of the part owned by the HA. When I work it out we should be paying around £480 but we are paying £680. Should I contact them? We have lived here for 28 years and have never been able to mortgage the rest

pramsay13

I think you should always understand what you are paying so feel free to contact them if you don't. 

eddddy

Bevn said:

I live in a shared ownership house and own a 1/4 of the house - mortgage was paid off last year. We pay rent on the remaining 3/4 and i believe it is worked out as 3% of the part owned by the HA. When I work it out we should be paying around £480 but we are paying £680. Should I contact them? We have lived here for 28 years and have never been able to mortgage the rest

When you first buy the property, the base rent might be set at 3% of the property value.

But typically, the base rent then increases using a formula like RPI+1%.  (Check your lease to find out what the formula is.)

So the base rent doesn't continue to be 3% of the property value.

ResourcesShared

Per a previous response your shared ownership lease will spell out the basis for the annual rent review (i.e. increase). There have been various different versions of the lease over time, so it's important to check your own lease terms. (For example, one 1999 version of the lease specifies that the annual increase is RPI+2%, or 5%, whichever is higher. More recent leases might increase rent by RPI+0.5%, or 0.5%, again whichever is higher.)