Residents

Shared ownership

We are delighted you have chosen a Zen home. We know shared ownership can sometimes feel complicated, especially if it is your first time owning a home.

Rent and service charges

Unlike private rental properties, the rent you pay as a shared owner is calculated and reviewed in accordance with the terms of your lease. There are also rules about how service charges are calculated and what costs can be passed on to you.

Your rent: what is it for and how is it calculated?

The rent you pay relates to the share of your home that you do not own. The amount you pay and the way it can increase are set out in your shared ownership lease.

How the increase is worked out

Your rent is normally reviewed once a year. The method used will depend on the terms of your lease and may include:

  • the Consumer Prices Index (CPI) for the relevant September, plus 1%; or
  • the Retail Prices Index (RPI) for the relevant November, plus 0.5%; or
  • another rent review mechanism specified in your lease.

We will write to you before your rent changes to explain your new rent and when it will take effect.

Your lease sets out the rent review provisions that apply specifically to your home.

Service charges

Your service charge covers the costs associated with providing, managing and maintaining the services that apply to your home, building or estate. The services you pay for will depend on where you live and the terms of your lease.

What you pay for

Your service charge may include:

  • buildings insurance;
  • communal and estate services;
  • repairs and maintenance to communal areas;
  • management and administration costs; and
  • contributions towards future major works or other costs where these are provided for under your lease.

In some developments, service charges may be set or managed by a third-party managing agent, freeholder or estate manager rather than Zen.

Your lease sets out the service charge arrangements that apply to your home.

Responsibilities

As a homeowner, you have different responsibilities to those which you might have had as a private renter. But we also have responsibilities too. Take a look at what we are both responsible for.

  • You are responsible for

    • Paying the rent on the share of your home you do not own and any service charges due under your lease
    • Taking out contents insurance to protect your belongings
    • Looking after and maintaining the parts of your home that you are responsible for
    • Repairing any damage to communal areas or facilities caused by you, members of your household or your visitors
    • Getting our permission before making alterations or improvements where your lease requires this
    • Letting us know about certain changes affecting your home or ownership where required

  • It is our responsibility to

    • Arrange buildings insurance where this is our responsibility under your lease
    • Make sure the parts of the building or estate that we are responsible for are maintained and repaired
    • Make sure the relevant services are provided where these fall within our responsibilities
    • Collect your rent and service charges and let you know about any changes
    • Meet the relevant legal and safety requirements for the parts of the building or estate that are our responsibility

Your lease sets out the exact responsibilities that apply to your home. If there is any difference between this summary and your lease, your lease takes priority.