MichelleB Posted September 23, 2009 Report Share Posted September 23, 2009 Hi, has anybody heard of lease options? I have 'sold' a few of my investment properties through a company using a 'lease option' over 10 years, its an amazing way forward. The Buyer has leased my properties from me for 10 years, done 5 yrs on a couple. They are paying the mortgage repayments for the full term of the lease and will complete the sale at the end of the lease term at the current market value at the time. Im delighted as, with these properties, I dont have any hassle of having to pay agent fees or find tenants and i have no worries that I will have enough income from rents to meet the payments of my portfolio. If anybody would like any info Im happy to help! Link to comment Share on other sites More sharing options...
Gee Posted September 28, 2009 Report Share Posted September 28, 2009 Excuse me for being a bit thick, but why would you want to do this? The idea of investing in property is to either make a capital gain and/or provide a monthly profit over and above the outgoings. Your way, someone covers your mortgage payments and buys the property at market value after say 10 years. There's no monthly profit for you and the market for selling may well not be right, not to mention you do not appear to be spreading your capital gains over several years. There's nothing in for you except risk. What happens if the company goes bankrupt, duing the lease or at the end? What does your Lender think of this arrangement? I'm sorry but I think it is one of the worst schemes I have heard of. Why do you have property investments if you don't want to look after them? Have I missed something? Gee Link to comment Share on other sites More sharing options...
mr.spence@talktalk.net Posted January 4, 2010 Report Share Posted January 4, 2010 Hi, I can not get my head around this. The only way I could see anyone paying your mortgage was if it was cheap and why would they want to give you full market value either in 5yr,10yrs or any years, come to that? think about it, I am going to buy your property - Question, but why would I want to wait 5yrs unless we had an agreed sale price today, at todays values! Next, who offer to pay a mortgage which is likely to be more than the rental income, unless you have some super dupa Mortgage Rate from one of the high st banks? even then it sounds like a big gamble, hoping to produce more income than outgoings. That other response, sorry, but I can not remeber the name, the one that was all negative, bit like mine, said why bother investing in the rental market, well that bit about someone paying your mortgage and handing over the increase equity after 5 or 10yrs would be reason enough for me and with no ...... hole tenants, ok, just the one, would be another. Yes, I would sit on the beach wishing my life away to pay day...... bliss, well, who knows. Please enlighten me Keith Link to comment Share on other sites More sharing options...
semiproinvestorTim Posted January 11, 2010 Report Share Posted January 11, 2010 Hey guys, sorry to disagree but I have heard of lease options and they can definitely work (in case you're wondering, no I don't have anything to do with the above poster) They are mainly a creative way of making money from property that works in the market as it is (seeing as not much else does). Not sure I followed the above example though... Except if Michelle means they will pay the market value that the property is worth at the time the deal is made rather than what it is worth in 10yrs time... The thing is, you don't have to do this with any company - why not just get some aspirant tenant buyers and make a deal with them? You'd certainly get much better terms... I couldn't tell if MichelleB's post was spam or not but if you want to drop me a mail Keith I'd be happy to tell you what I know so you can do it for yourself and not get ripped off by some dodgy get rich quick company... Tim Link to comment Share on other sites More sharing options...
mr.spence@talktalk.net Posted January 12, 2010 Report Share Posted January 12, 2010 Hey guys, sorry to disagree but I have heard of lease options and they can definitely work (in case you're wondering, no I don't have anything to do with the above poster) They are mainly a creative way of making money from property that works in the market as it is (seeing as not much else does). Not sure I followed the above example though... Except if Michelle means they will pay the market value that the property is worth at the time the deal is made rather than what it is worth in 10yrs time... The thing is, you don't have to do this with any company - why not just get some aspirant tenant buyers and make a deal with them? You'd certainly get much better terms... I couldn't tell if MichelleB's post was spam or not but if you want to drop me a mail Keith I'd be happy to tell you what I know so you can do it for yourself and not get ripped off by some dodgy get rich quick company... Tim ************************************************************************* Tim, you can get me on mr.spence@talktalk.net or electricmen@talktalk.net Would be great to hear from you Keith Link to comment Share on other sites More sharing options...
sjcollett Posted January 13, 2010 Report Share Posted January 13, 2010 The thing is the person/ company who has 'bought' this property of Michelle's can walk away at any time and she has to then pick up the bill again - i.e. she has to then find tenants and start paying the mortgage again. These lease options are very one way IMHO ************************************************************************* Tim, you can get me on mr.spence@talktalk.net or electricmen@talktalk.net Would be great to hear from you Keith Link to comment Share on other sites More sharing options...
simhar Posted January 18, 2010 Report Share Posted January 18, 2010 The thing is the person/ company who has 'bought' this property of Michelle's can walk away at any time and she has to then pick up the bill again - i.e. she has to then find tenants and start paying the mortgage again. These lease options are very one way IMHO I've never heard of this 'lease option' - is this the equivalent of having an interest-only buy-to-let mortgage - or am I being thick? Property Management Software - Property Management Software for property professionals and investors Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.