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Help with Lease Options
Options
HexDa3m0n
Posts: 1 Newbie
Hi All,
Please help!
My wife and I have been trying to sell our house for a couple of years.
We recently contacted a local sell-it-quick company (a two man band by the looks of it). The man came round and went through some basic figures with us, and said that based on the figures he would not be able to help.
A week or two later, he pushed his card through the door, saying that he might have a solution for us if we were still interested (so we invited him back round).
He suggested that we could try a Lease Option, whereby, we would sign an agreement giving him the option to buy our house within the next 5 or 7 years at a price we would agree now. (Basically, the house has been reduced from £120k to £100k. He is offering to put the purchase price at £120k, as he believes the house will be worth more like £160k in 5 to 7 years time).
He would then take over management of our house (allowing us to move on) and rent it out - hopefully for him to someone looking to do a rent to buy!
He said that there were lots of options for what went into the contract, but basically, he would take over paying the mortgage (he mentioned a Power of Attorney for this) and would sort out everything to do with renting the house (repairs, maintenance, boiler checks, insurance - everything) so that we would not have to do anything and in return, he keeps any profit from the rental.
He has put us in touch with a mortgage broker that he deals with, to try and arrange an interest only mortgage, so that he can increase his rental income.
I have been trying to find solicitors and IFA's in my area who can advise us, but as they don't really have any experience, they are all telling us to steer clear.
Can anyone let me know if this is on the level? And if there are any legal pitfalls we need to look out for (ie, power of attorney, insurance etc).
Sorry for long post......kinda hard to explain it all!!
Thanks
Please help!
My wife and I have been trying to sell our house for a couple of years.
We recently contacted a local sell-it-quick company (a two man band by the looks of it). The man came round and went through some basic figures with us, and said that based on the figures he would not be able to help.
A week or two later, he pushed his card through the door, saying that he might have a solution for us if we were still interested (so we invited him back round).
He suggested that we could try a Lease Option, whereby, we would sign an agreement giving him the option to buy our house within the next 5 or 7 years at a price we would agree now. (Basically, the house has been reduced from £120k to £100k. He is offering to put the purchase price at £120k, as he believes the house will be worth more like £160k in 5 to 7 years time).
He would then take over management of our house (allowing us to move on) and rent it out - hopefully for him to someone looking to do a rent to buy!
He said that there were lots of options for what went into the contract, but basically, he would take over paying the mortgage (he mentioned a Power of Attorney for this) and would sort out everything to do with renting the house (repairs, maintenance, boiler checks, insurance - everything) so that we would not have to do anything and in return, he keeps any profit from the rental.
He has put us in touch with a mortgage broker that he deals with, to try and arrange an interest only mortgage, so that he can increase his rental income.
I have been trying to find solicitors and IFA's in my area who can advise us, but as they don't really have any experience, they are all telling us to steer clear.
Can anyone let me know if this is on the level? And if there are any legal pitfalls we need to look out for (ie, power of attorney, insurance etc).
Sorry for long post......kinda hard to explain it all!!
Thanks
0
Comments
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I have been trying to find solicitors and IFA's in my area who can advise us, but as they don't really have any experience, they are all telling us to steer clear.
Take independant legal and financial advice from qualified professionals before signing anything.0
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