Rent, service charges and payment options

You will be required to pay rent in respect of the proportion of the property you do not own. This will be until such time that you own the property outright, i.e.. buy the remaining equity otherwise known as ‘staircasing out’. Your rent is calculated as a proportion of the property that you own and the initial value of your home at the time that you purchased it.

The rent is increased on an annual basis. The date of your increase will be found in your lease but is usually from 1st April each year. The mechanism for increasing the rent will also be detailed in your lease; however, it will normally be increased by the RPI (Retail Price Index) of each January plus 0.5% (variable). The rent will be reviewed on an ‘upwards only’ basis. This means that the level of rent will not go down when it is reviewed. However, any increase in the rent will be capped at a figure representing the RPI increase plus 0.5% (variable). This means that where the RPI is zero or negative the most recent rent can increase by 0.5% (variable).

We will always provide you with at least one month’s notice of your annual increase. The rent increase letter is issued by no later than 28th February each year. Rent payments must be made monthly in advance via direct debit. If as is normal you pay a service charge, then this is paid at the same time by standing order. The first payment towards your rent and service charge will usually have been made by your solicitor (using your funds) on completion of the purchase.

Please check the period that this payment covers to ensure that you know when your next payment is due. If you are purchasing by way of assignment (i.e.., from a previous owner) please check that your solicitor has made arrangements with the vendor about apportioning the charges for the month of purchase. Your insurance premium is calculated on bedroom rating and lessees will pay a fair and equitable amount for their property in relation to the number of bedrooms or bed spaces. Bedroom rating is a market standard way to rate properties.

Paying Your Rent

Following on from the completion of your purchase you will be advised of your new weekly rent and the balance on the account including any payments that have been made on completion. You will also be advised of your new rent account number. Your rent account will always be charged weekly on a Monday.

How To Pay Your Rent

You are required to pay this rent by monthly Direct Debit you will be sent a direct debit mandate with your welcome letter which you should complete and return to leaseholdincome@havering.gov.uk

Should you wish to make a debit or credit card payment on your rent account, you can do so by telephoning the automated payment line on 0300 456 0630 and you will need to know the amount you want to pay, your debit card details and your 14 digit rent reference number

You can also make payment on the Havering Council website www.havering.gov.uk

When making payment you must ensure that you quote the account reference number shown in your letter for either the rent or service charges. Each reference number is different so you must make sure you use the correct one.