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.