Purchase Lease Options are now widely used to take control of a property rather than purchasing it. In essence you have the right but not the obligation to purchase the property in the future at an agreed price.
With mortgage finance becoming increasingly difficult to obtain for investors purchase lease options are becoming an increaingly popular way to take control of a property and generate cash flow without the need for mortgage finance.
Please see below for packaged lease option deals currently available from YPN advertising partners.
Bristol BS1 6LA
2 bed 2 bath City centre Leasehold apartment with parking. Newly decorated and refurbished bathrooms. Complete with furniture fixture and fittings. New AST in place from 1st August.
£529 pcm positive cash flow
Financials:
Interest rate: base rate tracker for 2 years reverting to SVR year 3
Interest Only
No
ERC Penalties
Monthly rent £970.00
Monthly payment £243.15
Monthly maintenance £197.66 (inc ground rent)
Redemption Figure £254,300
Option deal
Option agreed at £265,000
3 year initial option which can be extended for a further 3 years.
Investor takes over the £440.81
pcm payment
Vendor will pay their own legals.
Fee for this deal = £4,000
The Process Legal teams for vendor and buyer in place and all paperwork ready to go.
Please note a YPN booking fee of £500 per property is payable which is retained if the purchaser pulls out of the transaction mid way through this deal. This fee refunded if the deal falls due to the vendor pulling out of the transaction.
For more details email catherine@yourpropertynetwork.co.uk
Manchester M1 2AU
First floor 2 bed, 1 bath apartment fully furnished, balcony, no parking. – just opposite Piccadilly Station. 12 month AST in place from June 2009.
£324.68 per month positive cash flow
Financials:
Interest rate: Life time tracker - 0.99% plus base
No
ERC Penalties
Monthly rent £625.00
Monthly payment £170.65
Monthly maintenance £129.66 (inc ground rent)
Redemption Figure £137,600
Option deal
Option agreed at 115% of mortgage redemption figure (= £158,280)
6 year initial option period
Investor takes over the £300.31
pcm payment
In addition buyer will settle the outstanding maintenance and ground rent charges to a total of £1443.73 and cover legal fees on both sides.
Finders fee applies.
The Process
Legal teams for vendor and buyer in place and all paperwork ready to go. Fee for this deal = £3,000
Please note a YPN booking fee of £500 per property is payable which is retained if the purchaser pulls out of the transaction mid way through this deal. This fee refunded if the deal falls due to the vendor pulling out of the transaction.
For more details email catherine@yourpropertynetwork.co.uk
Mansfield, Nottingham (Photo's available)
We are pleased to advertise a new Lease Option. We have secured immediate vacant possession, and the right to buy this property at any time within 5 years at today’s market value in return for making the FIXED RATE mortgage payments. With no mortgage arrangement or broker fees, you will be able to sell this property at any time in the 5 years, with no further cost and in the meantime you are making £45 gross profit every month.
Description
The property boasts the following features:
- 4 bed semi, 1 reception room, 1 utility room, drive;
- rear garden;
- maintained to a very high standard throughout;
- Modern boiler;
- Good rental area.
Financial Details
This property will make you £45 gross profit per month after the mortgage has been paid.
Market value £95 000
Mortgage remaining £90 000
Investor input required £4,999 (Including ALL legal, administration, registration fees etc)
Market rental rate £525 per calendar month
5 YEAR FIXED RATE Mortgage payments £480
(this is a long term fixed rate product so this rate will NOT increase)
Gross rental profit
£45 per calendar month
Gross profit on sale in 5 years (Assuming conservative 4% annual growth)
£20,583
Reservation fee £1000 (returnable on completion)
Fee for this deal = £4,995
Please note a YPN booking fee of £500 per property is payable which will be refunded if this deal does not complete.
For more details email catherine@yourpropertynetwork.co.uk
Comparable Properties
59 Holland St HULL HU9 2JD, 3 Bed End Terrace, Freehold, Average Condition,loft boarded out, upstairs bathroom, RICS expected value £70k purchase price £49000, Rental £425/450 good yield, fee £3000 inc vat.
Option agreement signed
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