A lease option is a legal arrangement that allows you to control and produce revenue from a house, with the right (but not the obligation) to purchase it later.

It’s actually two different agreements bundled into one, and when you separate them, it’s easier to understand:

Lease: You agree to a monthly payment to the owner of the property, allowing you to manage the property and to also rent it out for a profit to the tenants.

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This will support the vendor and owner occupied in purchasing your dream home - Mortgages are getting further away from first-time buyers at this current situation and this will be a huge step towards your next dream home. Full in the application, be quick as not many spaces left, as we find and source properties in all areas quick.  

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Option: You agree on a price at which, if you want, you can purchase the property later.

There are four key terms that need to be decided at the core of every lease option agreement:

1. The monthly charge, usually regardless of what the owner wants to finance their mortgage and all other expenses.

2. The buying price at which you have the option to purchase the property in the future

3. The term of the deal, in which you have to return the property if you haven’t used the option to buy. In return for the option, the upfront payment you will owe them (which in law is called a consideration)

4. There has to be at least some upfront charge for the arrangement to be legally binding, but this can be for as little as a quid. So, if you’ve heard people talk about “buying a £1 house”“? They’re speaking about lease options.