Lease options

cathyb

Does anyone have experience/knowledge of lease options as a variation on the rent to buy idea? If so, what is your opinion? Are they a good idea? What are the pitfalls?

I'd be interested in your thoughts.

theartfullodger

Could you kindly be more specific??

Is some silver-tongued devil trying to sell you a cunning plan???

G_M

theartfullodger wrote: »

Is some silver-tongued devil trying to sell you a cunning plan???

Sounds like it. Please expand.

ctebiz

A lease option is precisely rent to buy. There are two separate but linked contracts, one to lease a property and one confering right (but not the obligation) to buy that property at a fixed price within a fixed timeframe.

Preumably you are talking from the point of view of a buyer? There are benefits and of course potential pitfalls for both buyer and seller. Benefits to the buyer in the current market are that you may be able to secure a property to live in even though you are unable to get a mortgage or raise the required deposit for a standard purchase. You can later buy the property using a mortgage when borrowing conditions have eased, you have raised the deposit, sold a property, got a better job or a whatever.

One obvious pitfall is that if you significantly break the terms of the lease (e.g. not paying rent, damaging the property etc) then the option to buy may become invalid.

The exact terms of a lease option (price, timescale, any option fee, rent, additional purchase credits etc) can be varied to suit your circumstance and you should always seek qualified legal advice before agreeing to any property transaction.

theartfullodger

ctebiz appears to try to buy property at a huge discount of desperate sellers ... beware his advice.. (he's very easy to find btw..)