Example: paying rent
Gray’s cottage is valued at £200,000. Gray’s rent could therefore range from £200 to £1,000 per month: (£200,000 × 6% = £12,000 ÷ 12 = £1,000).
The larger the amount of rent Gray pays, the larger the cash lump sum the reversion provider will release. However, the amount of rent Gray pays may be restricted depending on the outcome of the provider’s affordability check. This, in turn, would reduce the lump sum released.
CeRER26 4.9 Example: paying rent
LTs for LIBF
Created on February 16, 2026
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Transcript
Example: paying rent
Gray’s cottage is valued at £200,000. Gray’s rent could therefore range from £200 to £1,000 per month: (£200,000 × 6% = £12,000 ÷ 12 = £1,000).
The larger the amount of rent Gray pays, the larger the cash lump sum the reversion provider will release. However, the amount of rent Gray pays may be restricted depending on the outcome of the provider’s affordability check. This, in turn, would reduce the lump sum released.