Shared ownership: what does “rent on the unsold share” mean?
In shared ownership, you buy a share of the home and pay rent on the remaining share you don’t own. Here’s what “rent on the unsold share” means, with a tiny example.
The short answer
In shared ownership, you buy a percentage share of the home and usually take a mortgage for that share. You then pay rent to the provider on the remaining share you don’t own (the “unsold share”).
Your total monthly cost can include mortgage payments, rent on the unsold share, and (for many properties) service charges set out in the lease.
A tiny example
Example (illustrative numbers):
- Full property value: £250,000
- You buy a 40% share: £100,000
- The unsold share is 60%: £150,000
If the lease/provider sets rent at (say) 2.75% per year on the unsold share, the annual rent on £150,000 would be £4,125, or about £343.75 per month.
The rent percentage and rent reviews are specific to the scheme and lease, so always check the documents for your property.
Helpful links
- Related calculator: /shared-ownership/
- Full guide: /guides/shared-ownership-monthly-costs-explained/
- Full guide: /guides/shared-ownership-affordability-what-gets-checked/
- Glossary: /glossary/service-charge/
- Glossary: /glossary/leasehold/