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What are lease option homes?

(Also known as rent to buy and rent to own property)

Author: Vanessa Atkinson

Initial Payment

Lease option homes work in the same way as buying a contract or lease hire car.

You pay an initial fee to move into the lease option home, just as you would pay a fee to drive the car away.

The fee for a house is sometimes called a downpayment or an Option Fee.

Monthly payments

You make regular monthly payments typically for 24, 36 or 48 months.

Part of these payments go towards the purchase price of the lease option home.

Choose to Buy

At any time up to the end of the agreement you can choose whether to pay a final fee to keep the house.

(For cars this is known commonly as a balloon payment).

Most people will require a mortgage.

Agreements

If you are a landlord offering a property as a lease option home, you will need two contracts produced by a lawyer that are signed by you and your tenant-buyer(s).

One is the rental agreement. The second is for the tenant-buyer’s option to buy during and/or at the end of the rental period typically for 24, 36 or 48 months.

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For Futher Information:Visit our website www.leaseoptionhomes.co.ukEmail us: info@leaseoptionhomes.co.uk

03/07/2013