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Lease option agreement


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Hi all,

I'm completely new to this platform, as well as to the field of property investment. 

NB: please forgive me if I have dropped this message in the wrong area. Given I'm blind, and I use a screen reader software, I have the tendency of getting to write my messages in wrong formfields!

I was wondering if anyone would be able to advice and guide me through my journey of property investment. 

I've been told, and please feel free to share your thoughts, that lease option agreement could be good strategies to enter the field of property investment. I also find it very appealing as I do not intend to take a mortgage due to my principle and tradition. Hence, a lease option agreement, where I could retain a property for 5 or 7 years by renting it out, and agreeing to a purchase price to pay at a later date, is certainly a convinient option for me. 

However, I was wondering if anyone could kindly advice me on how I could find lease option agreement properties on platforms, such as rightmove?

I look forward to hearing from you.

best wishes,

Ali

 

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  • 4 weeks later...

This is a very good question, and I wish I had the answer you want. I will suggest to you visit a real estate agent to get the full information about your questions. One of my friends was also in confusion before investing in property and he contacted UMEGA, one of the best Edinburgh estate agent to get advice and full information about the property. These guys are quite good and have a good grasp of the property market. I hope this will help you.

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  • 3 weeks later...

Hello Ali,

Lease option agreements are something I intend to do with my property portfolio next year.

1.  Find a conveyancing solicitor that specialises in lease option agreements as not all conveyancing solicitors do.  They will advise you on what it actually entails so that you are clear when you find a property & make a lease option agreement with the seller.  And they can draw up the document for you;

2.  Finding such deals online does take some time.  I look for properties that have been on the market for more than 6 months or more.  I check it's history, EPC, location in the area, etc.  But I'm going to link my lease options to rent to buy;

3.  When you've found your properties, have a clear plan how the rental is going to work; i.e. a straight forward rental to a tenant, a rent to buy to a tenant or rent to service accommodation, rent to HMO.  There are so many property strategies so you need to choose the one that's right for you.  Once you know your strategy, that will determine the types of properties you search for.

4.  Yes it is a benefit not having to get a mortgage.  However, check with the seller (or on the Land Registry website) whether there is a mortgage over the property & the type of mortgage.  You will be taking over the mortgage payments on behalf of the seller, but you won't be able to do that if the mortgage is a residential mortgage;

5.  Also if the property doesn't have a mortgage because it's owned outright, the seller will want some "monthly rent" paid to them.  You need to decide what is reasonable so that you can make your profit on top;

6.  Also look at rental websites were landlords are advertising their properties & see how long they've been listed.  They may consider selling instead of renting.

Hope this helps.

 

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