Leaseholder Options

There are different options depending on whether you are a resident (living within the property) or a non-resident leaseholder or freeholder. Option one is for all leaseholders and freeholders regardless of being resident or not.

Option One - Open Market Purchase

The council will buy back your current property as explained and you will receive an additional 10% home loss payment (7.5% ‘basic loss’ payment if it has not been your principal home for at least 12 months), plus ‘disturbance payments’ to cover the costs associated with the sale of your home to the council and your onward purchase. You then make your own arrangements to find a new home.

Option Two – Equity ownership on the new development

You are eligible for this option if you bought your property before the 24 March 2011 and have lived at the property for at least 12 months prior to entering into a buy-back agreement with council.

What is shared equity ownership?

Equity ownership involves re-investing the full value of your current property into a new-build home on the Acton Gardens development. The newly built homes are likely to be of higher value than your current home. This difference in value (between your current home and the new home) will be disregarded when the property is sold to you. You will not pay any additional rent or interest payments on the share that you didn’t buy. This share (or discount) would not need to be repaid unless you choose to the sell the property at a future date. 

The table below shows an example of how it would work for a resident leaseholder whose old home had a market value of £300,000, who is going to move into a new home with a market value of £400,000 and who will sell that home in several years’ time when the market value is £500,000.

Shared Ownership Equity Model:



Equity Percentage

Payment for old home

Value of existing home



Home loss @ 10%



Leaseholders receives



Payment for new homes

Total market value of new homes



Leaseholder pays



L&Q’s discount



At point of resale

Future value of home



Leaseholder receives



L&Q receives




The resident leaseholder reinvests all the value of their existing home, but not the homeless payment. However, if preferred the resident leaseholder could invest more money including any homeloss compensation in order to invest in a larger share of the property.  In the above example, the leaseholders share would increase to 82.5% if all £330,000 was invested.

Availability and applying for shared equity: 

L&Q has a number of shared equity properties available on each phase. The types of properties will depend on the design of the building. L&Q do not build shared equity properties with more than three bedrooms.

If you are interested in shared equity ownership, you will need to complete an application form and provide necessary proof of residency and identification. The applications will be assessed on the following criteria;

  1. Leaseholders/freeholders who cannot afford to buy elsewhere on the open market

  2. Leaseholders who meet L&Q’s charitable objectives to purchase subsidised housing

If you are currently the leaseholder or freeholder of a three bedroom plus sized home and require assistance with re-housing please contact Acton Gardens or Ealing Council to discuss your options.

What are the benefits? 

Investing in a shared equity ownership home means you will:

  • Continue living on South Acton– even if you can’t afford to buy a new home outright

  • Live in a warm, modern and high quality property with better insulation

  • Be financially compensated – you will receive full market value for your existing home plus an extra 10% homeloss payment and reasonable disturbance costs

  • Benefit from any increase in value if you choose to sell your home– but remember that values can go down as well as up.

  • Have the security of having L&Q as an equity partner. L&Q are:

    • A specialist housing provider

    • A charity

    • Regulated by the Government

    • Financially secure

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