Rental Agreement Terms

Let’s go through some of the important details of the rental agreement between you and Offa Money.

Rent Payment

For the part of the property owned by Offa Money, the customer will pay a rent. This rent can be set for a fixed period of 2, 3, or 5 years, or it can be variable, subject to changes at the end of each calendar quarter.

Calculation of Rent

The rent is determined by a rental rate (percentage) multiplied by the percentage of the property owned by Offa Money and further multiplied by either the acquisition value or the refinance value of the property.

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Property Maintenance

The customer is obligated to maintain the property on behalf of Offa Money.

Rental Rate Adjustment

The rental rate offered will be fixed for a specified period and will then revert to Offa Money’s reversion rate, known as Offa SVR.

Offa SVR

Offa SVR is determined by a margin over the Bank of England Base Rate (BBR). It is subject to change at quarterly intervals based on any adjustments to the BBR.

Administered Rate

Offa SVR is an administered rate and may not necessarily move in the same proportion as changes in BBR. However, it will remain unchanged if there is no movement in the BBR. (i.e. the product is not a tracker).