Purchase Lease Options UK - why and how to use them

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Күн бұрын

What are Purchase Lease Options and why would you want to use them as a property investing strategy?
This particular property strategy works best when working with motivated sellers and they don’t need the money from the disposal of the property.
Using a Lease Option can benefit both you and the seller. That could be at the start of the agreement, during or at the end of the transaction. This also means the payments at each stage can be flexible.
This video will give you an overview of this strategy so you can consider if it fits into your overall property investing goals.
Make sure to watch the below vlog too, filmed at a property where we structured a Lease Option deal for just 1 pound that went onto generate more then 70K profit.
• How I acquired this ho...
Timestamps
0:00 - Intro
0:27 - What is a Lease Option
1:10 - Why you would use Lease Options
2:39 - Why a seller would use a Lease Option
4:08 - “Tired” landlords - another situation where a property owner might be interested in Lease Options
5:08 - Don’t inherit other people’s problems with the property!
5:52 - How a Lease Option can work for portfolio landlords with a number of properties they want to sell
6:55 - How to structure a Lease Options deal
9:07 - Be mindful of when Stamp Duty Land Tax is payable in such a property deal
9:53 - Other examples of how you can structure a Purchase Lease Options deal
13:55 - What are the risks of doing a Lease Options deal?
16:01 - Are Lease Options legal?
#PurchaseLeaseOptionsUK #LeaseOptionAgreementUK #LeaseOptionsUK
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Пікірлер: 39

@faithnxumalo5543 2 ай бұрын

Great video clear and well explained 👏 ❤

@TreadRock. Жыл бұрын

Hi Saj, fantastic video, much appreciated! Could you please share the list of competent solicitors you mentioned, who can create such an agreement.

@DoctorAB282 3 жыл бұрын

Thanks Saj very informative especially risk management issues 👍

@TheSajHussain 3 жыл бұрын

My pleasure

@KenanBuckley 3 жыл бұрын

Thanks saj, this was absolute gold especially the downside of option deals.

@TheSajHussain 3 жыл бұрын

Thank you! If you are enjoying these videos, then please do share them with your friends.

@KenanBuckley 3 жыл бұрын

@@TheSajHussain sure, I have a WhatsApp group and I keep sending stuff to 😂

@coasttocoast-bn3yi 2 жыл бұрын

Really well explained thank you

@TheSajHussain 2 жыл бұрын

You are most welcome

@PoddyCrane-yn8rv 9 ай бұрын

Great video

@Kellyworthingtoncrossfit 3 жыл бұрын

Hi Saj - great video - could you recommend a solicitor in the North of England who has experience in option deals?

@LearnEarn247 2 жыл бұрын

Thanks for the video. Can you advise on plo in North East of England is it worth taking property on plo In nort East

@InclusiveMusic 6 ай бұрын

Thanks Saj. Can you do a video or comment on the implication of the owner dying within the option period and the Property getting tied up in probate. To be more specific I’ve found a property owned by an elderly lady and her sons have power of attorney they are willing to do a PLO, so presumably as long as this is detailed in the contract there shouldn’t be a problem. Is that correct. Thanks in advance, Phil.

@kevlewins 3 жыл бұрын

Thanks, you are always very clear and knowledgeable. I offer a lease option on a property next to a pub which wasn't selling. Unfortunately the vendor hasnt gone for it. I was however worried they might go bankrupt or similar as they were a property trading company. Can this risk be covered in the contract?

@TheSajHussain 3 жыл бұрын

Hi Kevin, each situation is different. Most probably you would need to exercise the option and purchase the property to avoid losing it.

@robboogaloo 3 жыл бұрын

Thanks Saj, great video. Quick question, if the a landlord has a paid off the mortgage on their old property how do we agree on a monthly payment for the lease? Thanks in advance!

@TheSajHussain 3 жыл бұрын

It can be whatever you are both happy with. For example Market Rent.

@ajlow5 3 жыл бұрын

Loving your content Saj! You definitely know your stuff. When acquiring a property with a loa from either residential seller or a landlord could you turn it in to a 4-6 bed hmo with the same existing mortgage product? Cheers

@TheSajHussain 3 жыл бұрын

That would depend on the terms and conditions of the current mortgage. I suspect most won't allow it.

@ajlow5 3 жыл бұрын

@@TheSajHussain Thanks for responding. Would we have the power to change mortgage product with the management agreement or power of attorney?

@TheSajHussain 3 жыл бұрын

@@ajlow5 No, however you can get a mortgage broker to discuss this with the owner.

@ajlow5 3 жыл бұрын

@@TheSajHussain ok thank you!

@ashleyspencer3664 3 жыл бұрын

Great content - I’m looking at a property with lots of land. I will split the title and sell them separately. Is this possible via an assisted sale?

@TheSajHussain 3 жыл бұрын

Yes, absolutely. You just needs the the vendors cooperation.

@robbiestratford9004 Жыл бұрын

Hi, is it easy enough to get a mortgage for the purchase if you exercise your option to buy?

@DonHiggs Жыл бұрын

Hi Saj, Good information, so thanks for that. My query is the same as TRDRCK, can you please provide details of Solicitors who you are aware of who have a good understanding of PLO's. (I am who is not desperate to sell but looking seriously at this scenario as a Landlord with a port folio)

@vyararadanova3736 Жыл бұрын

Hi Saj,the videos are great.I'm thinking of buying a house and letting it out but I don't know who to contact for help.I live in Norwich.For example, a real estate agent, can he offer me houses that are A LEASE OPTION DEAL?Thank you!

@karn323 3 жыл бұрын

Hi Saj Thanks very informative Can I ask if there is issue in getting mortgage on the property for you after the expiry of lease term of 5 or 10 years ? As mortgage lenders have a requirement that you should never be associated before with property they are lending on? Which in this case you are and hence none will lend to you? You will then be stuck with property and have to buy with only cash. Let me know your thoughts

@TheSajHussain 3 жыл бұрын

If you do end up in a situation like that then you can use bridging to complete the purchase and then remortgage after a few months.

@fareengul6233 3 жыл бұрын

Hi Saj, very clearly explained. How do you come across these deals? What marketing do you do? Or is it a case of if you come across a lease option then you will do one? Thank you

@TheSajHussain 3 жыл бұрын

When marketing for motivated sellers you will find some that can fit in a lease option structure. Essentially you are looking for sellers that probably don't need the money right now from a sale. e.g. a property that is For Sale and To Let at the same time is a good candidate for this.

@fareengul6233 3 жыл бұрын

@@TheSajHussain thanks 👍🏼

@ruhultalukder8643 2 жыл бұрын

Hi Saj, Nice video! I I am a big fan of your work. I get massive help from your videos . You are just another top level! Keep up the good work! I have a situation, please can you help as you always do - 3 bed terrace house in east London Freehold Agreed price : £400K Upfront payment :£15K Property need refurbishment: I will spend : £30K Vendor is only agreeing 18months PLO contract I need to pay £800 per month as rent to vendor after 4 month from agreement until I buy it ( 4 months for refurbishment) After refurbishment: property will value £550K There is no mortgage now Rental value £1700 pcm after work done Questions- 1. What strategy do you recommend in this scenario ? 2. Can I get 75% LTV when refurbishment done ? 3. I don’t have enough money to show 25% deposit paid , (100K) , as I only paid 15K to vendor as deposit , will that be issue to get 75% LTV? 4. What will be the best option to finance the property to complete the transaction end of lease option term? Any suggestions will highly appreciated! Many thanks , ruhul

@SJP.Property Жыл бұрын

If as a buyer I enter a purchase lease. I pay the £1, the property needs around £25,000 spent on it. The property is worth £85,000. Some people have said that that £25,000 will come off the end price as well as the rental I am going to give them per month also comes off the end price?

@vonnieyang745 2 жыл бұрын

Thank you Saj, this is really useful video! I’m currently paying attention to a flat. Because it has only 70 years of lease left, so it can’t be sold since it’s listed in April this year, and the asking price has been reduced from 150,000 to 100,000. I think if I can negotiate a purchase lease option agreement with the owner. The agreement stipulates that I will pay the owner to extend the lease and own the control of this flat for 1 to 2 years. During this period, I may rent this flat until the owner completes the extension of the lease, and then assists sales this flat. But I am not sure if this method is feasible? Does anyone have similar experience or deals? Could you please give me some suggestions? Thank you!

@TheSajHussain 2 жыл бұрын

Yes, this is possible Vonnie. I have done this.

@vonnieyang745 2 жыл бұрын

@@TheSajHussain Thank you! Your reply makes me more confident. 😊

@ItsDavidMorris 8 ай бұрын

I'm really looking into this option to start buying properties but struggling to find any information on how this would release the seller from the mortgage? Is this something that is done at the end of the deal, so the sellor still has the mortgage? Any advice would be greatly welcome, thanks ✌🏽

@antonyparsons6566 6 ай бұрын

Basically the rent that you will pay them covers their mortgage liabilities. You're not taking on their mortgage