Common Contracts
1 similar Lease Option Agreement contracts
How to do a lease option agreement. What is a lease option agreement. What is a lease option agreement uk.Lease Option Agreement • March 31st, 2023
. A lease option agreement is a way for people who want to own a home in the UK but lack the funds or credit to do so. It is also a strategy for property investors to diversify their portfolios and benefit from the economy. A lease option agreement gives the tenant the right, but not the obligation, to buy the property at a fixed price (the exercise price) within a certain time frame (the option period). The tenant pays an option fee to the seller or an investor who holds the option. The option fee is usually non-refundable and credited towards the purchase price if the tenant decides to buy. A lease option agreement is different from a lease to purchase option, where the tenant agrees to buy the property as a condition of the agreement. A lease option agreement is also known as rent-to-buy or rent-to-own. It is a relatively new concept in the UK residential market, but it has been used in the US and Australia since the 1970s. It can be attractive to homeowners who need to sell quickly
