How is the rent calculated?
The full rent for the property is calculated based on market rental yields for that property type in the area.
We aim to ensure the rent paid by the aspiring homeowner is fair, so we benchmark the rent regularly to ensure that.
Once the aspiring homeowner starts to purchase more equity into the property they will simply proportionally reduce their rent.
For example if you move into a £300,000 property with a market rental yield of 5%, the full rent in a year will be £15,000 or £1,250 per month.
Say 2 months later you decide to purchase £5,000 worth of equity, that equates to 1.67% of the property so your rent will be reduced to £1,229 per month.