At We Buy All Houses, we have multiple solutions to help sellers with their situations. There are times when selling a property for cash is neither preferable nor possible. This is particularly the case when a property has little or no equity in it. If a seller needs to stop paying the mortgage and move on without selling the property at below its full market value, then we can help by using an instrument called lease option. Although relatively new in the UK, lease options in property have been used in the USA and Australia for over 30 years. A lease option is a combination of a “lease” and an “option”.
1. We agree on a sale price
2. We take over your mortgage payments straight away
3. We rent out your property (we look after all maintenance )
4. We then purchase your property in 1–5 years for the agreed sale price in item 1 (in the meantime we are paying your mortgage so you have no expenses or worries).
The lease allows us to rent the property and to become responsible for the your mortgage payments. The seller (YOU) can move out of the property without any further burden of mortgage payments. In return, the seller grants us the right but not the obligation to purchase the property at the agreed price in the future. This is the option part of the deal. The sale price is agreed between us, and the period to exercise the option is usually between two to five years.
During this period, apart from paying your mortgage, we become responsible for looking after the property as if we already own it .
The seller has mortgage arrears and is facing repossession
There is little or no equity in the property
The seller does not need a large lump sum of cash immediately to move on.
The seller needs to move on immediately without further mortgage commitments.
This service is free. There is no obligation and the process takes approximately 28 days. Due to the flexible nature of a lease option, it is possible to structure it so that it can completely adapt to your circumstances.
