Shared ownership: rent and service charges
Find out about the costs below
Your rent charge
What Is Shared Ownership Rent and How Is It Calculated?
We refer to it as rent to distinguish it from your mortgage payments, although it works in a similar way. Through shared ownership, you’ve purchased a portion of your home and pay rent on the share still owned by MTD. The rent is regulated, meaning there are limits on both the starting rate and how much it can increase each year. This makes it more predictable than rent changes in the private market or fluctuations in mortgage interest rates.
When you rent privately, your landlord can usually decide how much to increase your rent each year. Under shared ownership, rent typically starts at 2.75% of the share you don’t own, giving you more stability and clarity about your payments.
Annual Rent Reviews
Your rent is reviewed once a year, usually in April, in line with the terms set out in your lease agreement. This process ensures that any increases are controlled and follow a consistent formula.
You can check which annual increase applies to you by reviewing your lease.
Your service charges
Service charges differ depending on where you live and what’s included in your lease agreement. Choose your property type below to see how your charge is made up.
Service charge cycle
Every February, MTD provides an estimate of your service charge for the year ahead (April to March). This covers the cost of maintaining and managing shared areas and services. You’ll pay the estimated amount in monthly instalments, helping you spread the cost evenly throughout the year.
In September, we compare our estimate to the actual costs.
- If we’ve overestimated, you’ll receive a credit on your account.
- If the costs were higher, you’ll be billed for the difference by MTD or your Managing Agent.
We always aim to make our estimates as accurate as possible and only charge the actual cost of services – MTD does not profit from service charges.