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Article > Are Lease Options For Me?



Article kindly provided by

Mike Clarke - mypropertypowerteam.co.uk AND

Mark Jackson - leaseoptionsmadesimple.co.uk

 

Many property investors who are struggling to obtain suitable finance are exploring the use of Lease Options to gain control of property for a small peppercorn fee and making arrangements for purchase at a future date. A Buy Now, Pay Later method of property investment.

Lease Options have in fact been around for many years, proven to be a very effective investment method popular in the USA and Australia.

In the UK Lease Options had previously only been used for commercial purposes until the economic crash in 2007 when investors suddenly found that lenders did not want to lend, and cash became tight. Overnight Lease Options became a major buzz phrase for investors and a new way of investing / controlling UK property hit the streets.

Lease Options Practitioners began educating investors and for many, the use of such agreements meant that they were able to continue to expand property portfolio’s and continue to profit from property without actually owning any of it. Stalwart “Old School” investors frowned but were soon left behind as Lease Option fever hit the UK and those who took the time to educate themselves on this method of controlling property were the only investors who were left smiling as the credit crunch bit harder.

Many would be investors have heard about the ease of use of Lease Options but still remain wary of how to put agreements in place and how to use options effectively.

MyPropertyPowerTeam were approached by Simon Clarke (no relation), an investor based in Leeds who asked a series of relevant questions that he felt he needed answers to before he could proceed to use Lease Options effectively. We put Simon’s questions directly to our own Lease Options trainer and expert – Mark Jackson from LeaseOptionsMadeSimple.co.uk

We have reprinted Simon’s questions and Mark Jackson’s answers below for the benefit of all property people who are still unsure about Lease Options or who want a little clarification on one or two aspects on effective use of such agreements.

 

Mark Jackson Lease Options Handbook

  • Get your FREE Lease Options Jump Start Kit – worth £97!
  • Short cut your route to Property Option success by piggy-backing across muddy investment fields on our experience
  • Make getting powerfully practical advice enjoyable, in this easy to read, easy to understand parcel of investing dynamite.
  • Includes scripts, real marketing examples, forms you need to get started, step by step lease options investor check-list and much, much more
  • Also available as an audio book

 


Simon Clarke Asked:

"I would like to start with the lease options and have seen the online presentations & DVD from different speaker but I have a few concerns, can you answer the following please:"


1. Legal paper work, does this get provided when you go on one of the courses or does the solicitor have agreements they can give you?

I would personally be surprised if any course gave the full legal paperwork in the form you need to complete a lease option. There is a raft of documentation that is needed to do this well. The paperwork needs to be tailored to each individual deal. The courses that do come with actual contracts would usually include simple purchase options (or lock-out agreements) or inferior legal documents.

2. Valuation, how do you value the property? I have seen some agents offering a free valuation; do they just go on line and see what property sold for in the area?

Valuations are not as critical for a lease option purchase - this is much more crucial in the case of a purchase with lender finance. Valuations are, at the end of the day, opinions and are only justified or exposed when the market is allowed in. So a property is worth what someone is willing to pay for it. Valuations are generally arrived at by comparing with previous sales of similar properties in a near-by area.

3. Survey, surely before any option is taken up a survey must be done?

Yes. But many investors don't do this. There are different levels of survey, of course, and bear in mind that they are only current for 3 months...

4. Agent’s fees, what happens to these?

If the property has been sourced through an Agent then the fees will need to be paid.

5. Sourcing property/ tenants, how is this done by going to agents visiting the property and then returning to the vendor?

There are many ways to do this - and using agents is one of them. Direct contact with the seller is often simpler.

6. What if the vendor is behind on their mortgage and how can you find this out?

There are degrees of financial distress. My view is that if the default is repeated and deliberate it is better to walk away. Those who have fallen behind will often hide the fact, so before you enter into an agreement you need to ask the seller, and confirm through recent mortgage and loan statements that what the seller is saying is true.

7. What if the vendor is in negative equity?

That doesn't have to be a problem. Lease options can solve that.

8. If the vendor needs the equity in the property to purchase another property and you have no capital?

Then you need to find and partner with someone who does have the money, or help the seller find the money from another source.

9. Are you completely protected if the seller decides after you have paid their mortgage for some time and decides they do not want to sell?

There is always a risk. You need to weigh that up - but the contracts are secure and binding - and can be enforced in a court of law.

10. Is any capital needed to start?

I would suggest that you need capital to be in the business of property investment. Start by sourcing properties cheaply and flipping the contract on to another buyer for a fee - that way you can get a pot behind you.

 

If you have any questions on Lease Options for Mark Jackson or property investment in general then please contact us by emailing mike@mypropertypowerteam.co.uk and we will find the answers you need to progress and succeed!

 

Mark Jackson Lease Options Handbook

  • Get your FREE Lease Options Jump Start Kit – worth £97!
  • Short cut your route to Property Option success by piggy-backing across muddy investment fields on our experience
  • Make getting powerfully practical advice enjoyable, in this easy to read, easy to understand parcel of investing dynamite.
  • Includes scripts, real marketing examples, forms you need to get started, step by step lease options investor check-list and much, much more
  • Also available as an audio book

 

 


Mark Jackson

Mark is a prolific lease option expert and property investor, educator and author. Having enjoyed outstanding success in the UK using property lease options he founded Lease Options Made Simple with Wendy Patton, the leading US lease option property expert.



Mike Clarke

Mike is the director of MyProperty PowerTeam.co.uk. He has been investing since 2004 and owns property across the North West and the North East

 

 

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Mark Jackson Lease Options Handbook

You Want to Invest in Property but Can’t Get
a Mortgage?

Have they said No to your mortgage application? How did that make you feel? You could have been earning £293 a month from that house they said you couldn’t buy? Are you starting to feel that your dream to make money from property is beyond your reach?

The annoying thing is that many are saying now is the time to buy… But how? It could be very frustrating.

You CAN do it!

How? Learn lease options. Property lease options allow you to take control. Does that sound like something that might interest you? Good.

Imagine saying goodbye to many mortgage applications, expensive surveys and down-valued property! Imagine planning and executing a sensible, personal property investment strategy, building a sustainable investment portfolio, without having to ask for permission!

Mark Jackson Lease Options Handbook

 
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