1. What is Shared Homeownership?

Shared homeownership is a scheme where you buy a share of a property (typically between 25% and 75%) and pay rent on the remaining share. This calculator helps you determine your total monthly costs.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Mortgage — Your monthly mortgage payment for your share of the property
• Rent on Share — Monthly rent paid on the portion you don't own

Explanation: The equation simply adds your mortgage payment to the rent you pay on the unowned portion of the property.

3. Importance of Cost Calculation

Details: Understanding your total monthly costs is essential for budgeting and determining if shared ownership is financially viable for you.

4. Using the Calculator

Tips: Enter your estimated mortgage payment and the rent you'll pay on the unowned share. Both values should be in the same currency.

5. Frequently Asked Questions (FAQ)

Q1: What's included in the mortgage payment?
A: This should include principal, interest, and any mandatory mortgage insurance if applicable.

Q2: Does rent on share include service charges?
A: Typically no - service charges are usually an additional cost on top of the rent.

Q3: How accurate is this calculation?
A: This provides a basic estimate. Actual costs may vary based on interest rate changes, rent increases, and other factors.

Q4: Can I staircase my ownership later?
A: Most shared ownership schemes allow you to buy additional shares (known as staircasing) which would reduce your rent portion.

Q5: Are there other costs not included here?
A: Yes, you should also consider service charges, maintenance costs, insurance, and other homeownership expenses.