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Housing options for resident leaseholders on redeveloped estates

If you’re a resident leaseholder and your estate is redeveloped, you have 3 options to choose from depending on your circumstances. 

Sell your home to the Council 

If you sell your home to us, we will pay you: 

  • the full market value of your property (based on an independent valuation) 
  • a home loss payment equal to 10% of the agreed market value, subject to the statutory maximum 
  • reasonable moving costs 
  • reasonable legal costs associated with the sale 

You will need to either pay off your current mortgage or transfer it to your new home. This is called porting.

Find out more about the financial offer for resident leaseholders.

Buy a new home in the redevelopment (shared equity) 

You may be able to buy an equity share in a new home on the redeveloped estate. 

This means you would: 

  • sell your current home us 
  • receive the full market value plus your home loss payment 
  • reinvest this amount into a new-build home 

If this amount does not cover the full price of your new home, we will invest the remaining amount. For example, if we invest 50% of the original price, we are entitled to 50% of the proceeds when you sell the property. Our contribution is treated as a percentage share of the value of your home, not a fixed loan.

Example: We fund 25% of a £200,000 home, which is £50,000. The home later sells for £300,000. We receive 25% of £300,000, which is £75,000. If the same home falls in value to £160,000, we receive 25% of £160,000. This would be £40,000.

If you buy a new home on the redeveloped estate through a shared equity scheme, you may need to take out a new mortgage.

Service charges and repair costs

As the homeowner, you're responsible for 100% of the service charges and repair costs.

Buying a larger share of your home

You can buy a larger share of your home through a process called staircasing. The cost to buy these extra shares is based on the property's value at the time you buy them. The valuation of the additional equity shares is determined by a Royal Institute of Chartered Surveyors (RICS) accredited surveyor.

Remember, you must have enough money to cover 100% of the service charges on your home as well as the costs of buying additional equity shares which will include:

  • valuation fees
  • legal fees
  • administration fees

Buying an equity stake as tenants in common

Resident leaseholders can buy an equity share as tenants in common. This may apply where spouses wish to buy together, or an adult child lives in the 
property.

Each circumstance will be assessed individually. However, there will be no succession rights to the equity share. This means that the property cannot be passed on without our equity share of the value being paid off.

If you cannot afford shared equity

Shared ownership

You may not have enough funds from the sale of your lease to meet the minimum threshold for shared equity. If this happens, you may be offered shared ownership as an alternative. This is known as part buy, part rent.

This arrangement means you need a lower initial investment, but requires you to pay us rent for the unpurchased share of your home.

Council tenancy

In certain circumstances, we may grant you a council tenancy so you can continue to live on the estate. We will decide this on a case-by-case basis and will only apply if you're experiencing severe hardship and are unable to take up any other option. Right to Buy and geographical restrictions will apply.