Ever considered investing in property through 'Purchase Lease Option Agreements?'
Well, you NEED to know the IMPORTANT factors surrounding them, especially in regards to what happens at the END of the agreement…
In this week’s video, Samuel talks about one of his Lease Option Agreements which has recently come to an end. He secured a Lease Option deal 4 years ago, with the intention of buying the property after 5 years.
Before we talk about that to do at the end of a Lease Option Agreement - check out Samuel’s figures below:
Lease Option Agreement – 4 years secured – property valued at £76,000.
Intentions to buy property after 5 years for £76,000.
Property achieved Samuel £500 per month passive rental income.
Property is now worth £102,000.
So, the property has clearly now gone UP in value!
Which means, what will Samuel do now?
Well, it is important to remember, when securing an agreement, you have the option to buy the property, NOT an obligation. And, if your Lease Option Agreement has been drawn up by a solicitor properly, the other person CANNOT pull out!
Samuel advises you let the vendor know 12 months prior to the completion date what your intention are in buying the property, once your 3, 4, 5-year agreement is up.
You then have to ask yourself these questions:
How am I going to finance this property?
Am I going to buy it up right – 25% of £76,000?
Shall I refinance it? (you NEED to show that you have added value remember!)
Shall I buy it through a company?
*SAMUEL LEEDS TOP TIP*
When looking to re-finance, it CAN cause complications and confusion telling the lender that you have done a Lease Option Agreement, it is best to buy it as a straight sale as some lenders don’t like it…
So, there are many options Samuel now has, but either way, he is STILL going to make money and that is the BEAUTY of Lease Option Agreements!
To watch the FULL video, see the clip below!
Want to learn how to do deals like these? Spend two days with Samuel Leeds - https://www.property-investors.co.uk/