No mortgage required. No dealing with brokers or banks. No upfront valuation fee. No risk. No credit checks. No LTV criteria. No proof of deposit. Buy as many as you want without being restricted by mortgage lenders. The future of low capital in deals is in Lease Options.
In our opinion Lease Option contracts are going to be the most effective way of acquiring investment property in the year 2011. This is also the most effective way for sellers to move their properties on, with no fees and no fuss.
Completely turning the BMV model on its head, a Lease Option allows an investor to agree a price today and set a completion for an agreed time in the future, our aim is to make the contract a win-win situation for both investor and seller by the seller getting close to the full market value today and the investor having a period of up to 10 years to exercise their Option.
With our web-based lead generation and a great panel of solicitors in place to process the legal side of things, whether the deal is in England, Scotland or Wales we can complete the transaction in as little as 10 days.
All of our Lease Option properties go through exactly the same due diligence process as any other property we visit, so you can rest assured if we email you a deal we can also provide you with a full assessment. We will also provide a catalogue of internal and external photographs, with a letting agent ready to market.
Please check out our recent Lease Option investment opportunities or call us on (0191) 422 8830.
Why choose a Lease Option?
The current climate and lending criteria have left many of us, as investors, frustrated and restricted at not being able to achieve buy to let mortgage status for one reason or another.
- Too many buy to let mortgages
- Not enough proof of deposit
- Credit score not high enough to qualify
- Wasted valuation fees on properties not completing
- Lengthy completion process which in turn can lead to vendors pulling out of the sale
- Usual issues of dealing with the red tape and bureaucracy of the lenders and solicitors
- Using a Lease Option or ‘exchange with delayed completion’ eradicates all of this and allows investors to take full legal control of a property without the pitfalls of the standard buy to let process.
How a Lease Option works
If a vendor has little or no equity in their property and is looking to sell on the open market, the end result for them is negative. They may be looking to relocate or indeed sell a property in their portfolio for whatever reason and do not need the equity as it does not exist. Coupled with this is the main problem for them of continuing with monthly mortgage payments on a property they do not or will not be residing in, which means that in a slow market they can be waiting what feels like years for a sale to be agreed.
This means they are more than happy to offload the property to another party as a legal transaction, passing all responsibility to the investor by exchanging on the property and agreeing on a price now and delaying the completion for a date in the future. Normally 7-10 years.
Why would you invest in a Lease Option?
Aside from the points highlighted above, you are able to take full legal control of a large number of properties, displaying good monthly positive cash flow. The reason you would delay completion is because you need capital appreciation to work it’s magic over time, in order for the property to realise the right amount of equity to make a nice profit when it’s sold.
Lease Options have been a part of the US commercial real estate industry and have worked successfully for the past 20 years. We are in the fortunate position to take full advantage of these deals by capturing information from sellers who are looking to sell their property and are happy to agree a price today but wait at least 3 years for the completion.