LEASE OPTIONS

Lease Options are here to revolutionise the ways in which you buy Investment Property. The Lease Option Magic combines renting and buying into one unique package.

 

HERE’S THE LOWDOWN,

You start with a lease agreement, just like renting any property, it covers rent, the duration of your stay, the lease term, and who handles repairs. However, alongside the lease agreement you also get the “Option” to buy the investment property at a fixed price during or at the end of your lease term.

 

The Best Part?  No pressure, as you have an “Option”, you can choose to exercise it or leave it, so, it’s entirely your choice whether to proceed with the purchase.

 

Why choose a Lease Option in the UK?

Let’s dive into the reasons to get excited about Lease Options:

 

NO RUSH, Lease Options are perfect if you’re not ready for the full commitment of buying an investment property. You can move in or let the property out during the lease term, on an AST or on the basis of short term lets ( think Air B&B) , generating rental income, that ideally covers the rent and makes profit, while taking your time making the BIG decision.

 

PRICE LOCK, concerned about rising property prices? The Purchase price is locked in when you sign the Lease Option agreement. With a Lease Option Agreement, you will be able to ‘test’ the market and you will be able to let the Investment Property during the lease term, you will understand the local area and how popular the Investment Property is. You will know all of this before you buy.

 

CREATIVE FUNDING, here is the exciting part, Lease Options come with ‘rent credits’. This means that a portion of your monthly rent contributes to reducing your Investment Property’s final purchase price when you decide to buy.

 

THE NON-REFUNDABLE FEE, though it is possible to pay just £1 to secure your Lease Option, a seller may request an upfront fee. Here’s the catch, the fee is non-refundable so if you decide not to buy you won’t get it back.

 

MARKET SURPRISES, Property values can be as unpredictable as the British weather, so if they unexpectedly drop during your lease term you may decide to not exercise your option.

 

WIN WIN STRATEGY, Savvy Investor you spot a great investment property in a thriving area, which you know will be a good investment, but you cannot proceed with the purchase (legal conveyancing process) immediately. A Lease Option allows you to secure your investment without the immediate commitment to purchase.

 

LEGAL FORMALITIES: It’s not just a handshake, for Lease Options to be enforceable, certain legal requirements must be satisfied. You’ll need a clear agreement setting out the terms of the Lease Option agreed with the seller. Moreover, the seller must receive independent legal advice, to avoid the seller claiming they didn’t understand the nature of the transaction or the content of the Lease Option agreement. For it to be valid and legally binding it cannot be a causal handshake deal!

 

IN A NUTSHELL

Lease Options in the UK are like the rollercoaster of real estate-thrilling and full of twists. They offer flexibility, price security, and the chance to test-drive your investment Property. But remember, it’s not all fun and games; your Lease Option agreement may not be enforceable, if certain legal requirements are not satisfied.

 

Here at RSL LAW, we have a dedicated Team, who will be happy to advise you and to assist with the entire process of negotiating, preparing and finalising your Lease Option arrangements.

 

And Best Until last

We can act for both the buyer and the seller, subject to certain arrangements in place, including different Legal Team at RSL LAW acting for each party and both parties signing a disclaimer letter.

 

CALL US TODAY ON +44 (0)2070605333 or drop us a line on info@rsl-law.co.uk