Rent to Buy or Lease Purchasing Contracts
Rent to buy or lease purchasing is contracting to rent a property at an agreed price with a premium paid over and above the normal rental which is called an ‘option fee’. This ‘option fee’ is accumulated over a period of time, (usually five years) and used as a deposit to purchase the property at a pre-determined purchase price. This is a strategy that is more suited to those individuals who find it difficult to save. It works successfully for young professionals who tend to spend all they earn, families on high social security payments, families on only one income, single parents, or anyone who has trouble saving the required deposit to purchase a property through normal budgeting techniques.
We always recommend that you seek professional advice as this blog is for general information only