Pricing

Your rent, monthly Principal Savings and share of the capital appreciation depend on the characteristics and location of your Preferred Home and the level of your Initial Principal Savings.

Initial Principal Savings

(a) The higher of (i) 3% of the Purchase Price and (ii) £3,000, if the Purchase Price of your Preferred Home is less than or equal to £100,000 or;

(b) The higher of (i) 3% of the Purchase Price and (ii) £4,000, if the Purchase Price of your Preferred Home is greater than £100,000.

This will be placed in a protected Tenant Deposit Scheme after payment and will contribute towards your savings.

Example 1:
If the Purchase Price of the Preferred Home is £80,000, 3% will be £2,400. In this case, the Initial Principal Savings required will be £3,000.

Example 2:
If the Purchase Price of the Preferred Home is £150,000, 3% will be £5,000. In this case, the Initial Principal Savings required will be £5,000.

Rent

Your monthly rent will be based on the estimated market rental value of your Preferred Home, taking into account its characteristics, quality and location. Your rents may be increased in line with the Consumer Price Index (CPI),
the common measure of inflation set by the government and subject to our rent review provisions and discretion.

Monthly Principal Savings

Your monthly principal savings is based on the Purchase Price of your Preferred Home and the level of Initial Principal Savings paid at the beginning of our agreement. Over the term of the agreement, you are expected to contribute a minimum of 10% of the Purchase Price of your Preferred Home. You cannot contribute more than 30% of the Purchase Price over the term of the agreement.

Share of Capital Appreciation or Loss

Capital Appreciation: When the value of your Preferred Home increases over your lease term

You will receive all Capital Appreciation proceeds in addition to your Principal Savings if;

your total Principal Savings is the min. 10% of the Purchase Price at the start of the agreement and;
the Capital Appreciation is less than the difference between 12% of the market value of the home at the end of the agreement, and your total Principal Savings.

Otherwise, in addition to your Principal Savings, you will receive Capital Appreciation proceeds equivalent to the difference between:

your total Principal Savings and;
a percentage, equal to X% + 2% premium, of the market value of your home at the end of the lease term.

where X% is the percentage of your total Principal Savings to the Purchase Price of your home at the start of the lease term. This is subject to a 30% cap.

Capital Loss: When the value of your Preferred Home decreases over your lease term

If the average annual decrease in value of the home over the lease term is;

Less than or equal to 4%, the tenant will receive an Exit Deposit Multiple of 1x.
Greater than 4% and less than or equal to 10%, the tenant will receive an Exit Deposit Multiple of 1.2x.
Greater than 10% and less than or equal to 15%, the tenant will receive an Exit Deposit Multiple of 1.6x.
Greater than 15% and less than or equal to 20%, the tenant will receive an Exit Deposit Multiple of 2x.
Greater than 20% and less than or equal to 25%, the tenant will receive an Exit Deposit Multiple of 2.4x.
Greater than 25% and less than or equal to 30%, the tenant will receive an Exit Deposit Multiple of 3x.

where Exit Deposit Multiple is the ratio of:
(a) percentage of the Sale Value of the home that you receive as deposit towards your purchase from us at the end of the lease term; to
(b) percentage of your total Principal Savings to the Purchase Price of your home at the start of the lease term.