Lydia, the rent is based on a percentage of the un bought value. The figures from the Redloft site for one of the two 3 beds are: Value £650k, min share 25%, Purchase cost £165250, Remaining Value, £487550, Mortgage £864.73, Rent, £203, Service inc Buildings Ins, £49.79, Total Monthly £1104.83. So the % is currently 0.5, ie Bank Rate. I think its a pretty good deal, unlikely much staircasing will happen but if interest rates stay low it might........ If buying a previously owned S/O property always check the capital value for the rent and the rate of annual rent increase stated in the lease. A property built when interest rates were high will have an equivalently high % and ditto rent increase rates.........
Iain Muir ● 3738d