Lease Options

In practice, a 'Lease Option' agreement is a contract between two parties, a prospective buyer and a seller that gives the prospective buyer the 'option' to buy the property for an agreed fixed price at a future date.

Both parties must agree the price and terms of the purchase for the option to be valid and once signed it is legally binding. This can be done for as little as £1

So what does that mean to the actual investor?

You can control property without actually ever owning it - so get all the benefits of property ownership BUT Without any of the downside.

Lease Option CASE STUDY:

We were contacted recently by a vendor who needed to sell their property as he was undergoing career relocation to Northern Ireland. He couldn't afford to sell the property with a huge discount as he did'nt have the equity in the property so we took it on a lease option. The option cost us just £1*. The property had £15,000 worth of equity in it and was producing a monthly +ve cash flow of £325. We took a 5 year option on the property were the vendor would get the amount outstanding on the mortgage and we would make a profit on the remaining balance.