Lease Options

Lease Options are an every day method of property transaction in many countries including America, Australia and especially in Canada where the conveyancing laws are very similar to the U.K. In these countries investors have gained huge levels of income and guaranteed lump sums. At long last they have arrived in the U.K. Completing a Lease Option on a residential house will not only make the investor a passive monthly income but will also give them a lump sum payment at the end of the lease. The way that a Lease Option contract is set up means an investor passes over all responsibility for property maintenance to the Tenant. This saves the Investor time, money and hassle. Lease Options have been present in the commercial sector in the U.K. for many years. The principle when related to the residential sector is very similar.

Lease Options are desperately needed in this country. As house prices have risen it has become harder and harder for people to get onto the housing market. Lease Options are a way for people to fix the price of a house so they can save towards the deposit and/or improve their income. The groups of people who are currently benefiting from Lease Options are:

" First Time Buyers
" Self Employed with no accounts
" Women or Men looking after children who plan to go back to work
" Anyone who wants to stop paying rent and getting nothing back
" People moving up the ladder because they need a bigger house but cannot quite afford the jump up in price
" When relationships break down often it is difficult to get back to owning a property. Homebuyer make this possible
" People who are training and whose wages will improve but want to move into a house now that will be their own
" Graduates who do not want to rent but want a way to ensure that they benefit from the appreciation over a 3-8 year period
" Anyone who has poor credit and cannot get a mortgage today or the mortgage rate is very high because of their poor credit score.
" Anyone who wants to benefit from enjoying the feeling of living in a house that will be theirs at some point in the future and who cannot afford to buy today.

After a Tenant Buyer moves into a property they agree to maintain the property as per the conditions of the lease. They also pay the buildings insurance. They are given an option to buy the property at a fixed price at a date in the future which is also fixed.
Unlike Buy to Let property where the Landlord is responsible for property maintenance, insurance, gas and electric certificates, Lease Option monthly payments simply have to pay the finance charges and the investor.
There are also a number of Tenant Buyers who are happy to pay some money towards the purchase price at the start of the agreement. This helps them because it reduces their monthly payment and further cements the security of the transaction for the investor.