Lease Options
Lease Option is relatively a simple method which contains a written agreement that clarifies all the terms and conditions between the seller and the buyer. Additionally, a lease option consents the seller to put his or her property at an agreed price to the buyer where it outlines all the information needed such as monthly dues and maintenance.
For the time being, the Lease Option is kept by the buyer for a period of time or until the duration of the agreement and by the time the buyer has completed all the necessary purchases and transactions for the property.
Once the Lease Option agreement has been made, the vendor is no longer under contract and can leave without any financial obligation. The Lease Options holder promptly is the sole owner of the property in which he or she is responsible for its monthly dues and mortgage payments.
The only remaining link between the buyer and the seller is its mortgage which is connected between them and until the duration of time is over and the buyer has the option to acquire the property. Consequently, it is then transferred into the buyer’s name.
FAQ's
How long is the duration of Lease Option before I purchase the property?
Typically, Lease Option is between 7 to 21 years. However, the period of the agreed terms will vary prior to final purchase under the conditions of the individual.
Will it cost me anything to set up the lease option agreement?
The seller is not obliged to spend on setting up the lease option. Our company offers a value up to £750 to set up all the legal cost.
Do I have to pay the mortgage payments if it still remains under my name?
No. Under the terms of your binding contract, the lease option holder will pay the mortgage to your lender.
The mortgage is still under my name, am I liable for any services due and payments?
No. Under the terms of your binding contract, the lease option holder is responsible for any services and maintenance payments to your lender.
Can I secure another mortgage to a different property?
Yes. Your binding contract should not affect your ability to acquire another property.
Why is lease option agreement beneficial?
Lease Option will give you freedom to leave the property without any financial obligations.