Some examples of when a Lease Option would be suitable – you are a homeowner and you need to move out of the property however:

• There is very little in the property or your mortgage exceeds the value.
• You do not need a large lump some of cash immediately to move on.
• You need to move on immediately without paying the mortgage payments
• You want to secure a price that is close to current market value regardless of what the property market is like in the future.

For example, your house has been on the market for  6 months  at £220,000 you have a mortgage of £180,000 which is costing you £960pm. In order to sell you would need to reduce to say £190,000 to attract any interest which would leave you with little equity after you have paid all estate agent and legal fees. In addition once a buyer has been secured this could take anything from 3 – 9 months and during this time you will have to continue paying your mortgage.

An alternative would be to grant us an option to buy your house at £220,000 within the next 5 years and in the meantime we would take over your mortgage payments of £960pm. Should we choose to exercise the option to buy your property anytime within the option period ( 5 years) you would receive £40,000 in equity after paying off your mortgage of £180,000.

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