Shared Ownership Rent Calculator calculator can be used to calculate the monthly rent for a shared ownership property based on the tenant's ownership percentage and other financial details.
Learn how to use the Shared Ownership Rent Calculator calculator and its working principles
The calculator uses the following formula to determine the monthly rent:
Monthly Rent = (Ownership Percentage / 100) * Annual Rent + Service Charge
This formula ensures that the rent reflects the tenant's share of the property and includes additional charges for services.
If a property is valued at £300,000, the tenant owns 50% of the property, the annual rent for the tenant's share is £12,000, and the service charge is £300 per month, the calculator will determine the monthly rent as follows:
Monthly Rent = (50 / 100) * £12,000 + £300 = £6,300 + £300 = £6,600