UK Residential Lease Options

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Information about UK Residential Lease Options

Published on November 28, 2008

Author: webwolrd


UK Residential Lease-Options : December 2008 1 UK Residential Lease-Options The Ultimate Property Investment Strategy. Antidote Against the Crunch Credit? UK Property Market Bad News : December 2008 2 UK Property Market Bad News The bad news vocabulary: Sub-prime crisis Credit crunch Recession Mortgage drought Housing slump House price crash Global financial turmoil staglation Fuel crisis Utility price hikes General economic downturn Do you need more bad news? Nooo! Reversing the Downward Spiral of Negativity : December 2008 3 Reversing the Downward Spiral of Negativity Your thoughts conditions your outcomes in life You become what you think or what they want you to think Let’s reverse the downward spiral of negativity Let’s focus on how to implement the ultimate anti-recession get back the respect you deserve cut your losses unlock your cash-flow recover your wealth profit as the crisis continue unfold How to Buck the Adverse Economic Trends : December 2008 4 How to Buck the Adverse Economic Trends A Workable Property Market Survival Strategy Prevent bad economic news from distracting you from your goal and impairing your judgment; Protect your home from repossession; Sell your property fast (and close to market value or above); Convert your negative equity property into positive equity; Rescue your buy to let portfolio (which is set for a major upset in the months to come if you do nothing); Be proactive in the current economic climate of doom and gloom; Stay ahead of the game in a seemingly faltering property market; and ultimately Profit (possibly greatly) during the current economic downturn. Property Fundamentals Remain Constant : December 2008 5 Property Fundamentals Remain Constant Despite how bad the crisis is People still need to live somewhere. There comes a time when offspring will have to leave the family nest. People are still dying and leaving their homes to future owners. For a property transaction to happen a buyer must obtain a mortgage and a seller must repay a mortgage. Significantly, it is only the first part of the process which is being impaired right now, not the second part. Hence prices are going down. Even on the buy to let market landlords are buying fewer properties. So, less rental property is being purchased overall. At the moment, only investors with large amounts of ready cash are in the strong position of being able to bag a bargain. This predicament will continue, until lending criteria become more relaxed and we move into the house inflation part of the cycle. To Succeed in Property Investment You Must Understand the Property Clock Traditional Property Investing : December 2008 6 Traditional Property Investing try to buy low and resell high; try to buy develop and sell high; try to buy to let and to generate positive cash-flow The pros In a raising property markets astute investors/dealers can make tons of money with BMV Even lucky/inexperienced investors can make money by tapping into raising equity in their house or buy-to-let portfolio The strategy for positive cashflow is solely driven by yield The cons Astute investors still make tons of money with BMV but people perceive transactions as win-lose In a stagnating or falling market BMV there more BMV but fewer people with cash, so lucky/inexperienced no longer make money or suffer negative cashflow First buyers struggle Positive can only be achieved with lower price (25%, 30% below market value) Most transactions are perceived as win-loose or loose-win The strategy for positive cashflow is solely driven by yield The Crisis Is Primarily Due to Money Not Flowing! : December 2008 7 The Crisis Is Primarily Due to Money Not Flowing! Lease Options - The Way Forward : December 2008 8 Lease Options - The Way Forward You can use lease options as the ultimate tool to define the terms and conditions of your property transaction whereby buyers and sellers agree on a deferred sale while the buyer is arranging his finance to complete the first part of the transaction. This works particularly well in a stagnating property market The bottom line is that this type of transaction is always within your control; you set the terms to benefit your cash-flow. Once you have got to grips with how powerful lease options agreements can be and if you work with solicitors with lease options expertise, you can resolve any problems affecting your property portfolio. Other Benefits of Lease Options : December 2008 9 Other Benefits of Lease Options Convert Your Negative Equity Property Into Positive Equity Convert Your Negative Cashflow Property Into Positive Cash-flow Save Your Buy To Let Portfolio Profit Greatly During the economic downturn how the monthly positive cash-flow generated can be equal to or greater than the profit you could obtain from your best buy to let property acquired below market value; how the on-sale price will generate a profit ranging from £10 K to £25K, within 6 months to a year. If you repeat the operation 10 times within a year whereby you acquire, lease and sell compared to an existing buy to let portfolio of 10 x 250 = £2500, not only can you exceed the monthly positive cash-flow of a buy to let portfolio, but you could also potentially make between £100K and £250 K, within 12 months. “Assured Positive Cashflow” gives you the keys to mastering lease options and demonstrates clearly how you can apply this knowledge as an ultimate investment technique which works in all kinds of markets, up, down, sideways. Lease Options are Proven Techniques : December 2008 10 Lease Options are Proven Techniques The road less travelled is that way for a reason Some who have travelled the lease-option roads: Walt Disney John D. Rockefeller Donald Trumps Used in commercial properties for “donkey years”… Concept came from retail industry (try before you buy, car leasing, lease purchases) If you master lease-options it can take you from being broke or even bankrupt to being financially free in few years It’s all about the transaction terms and not the state of the property market Creating Positive Cash Flow through lease options is about creating a 'vendor terms sale‘ whereby the vendor or seller creates the terms and conditions for selling his property to a buyer by using a lease option or an instalment contract. Let’s Define Some Terms : December 2008 11 Let’s Define Some Terms Lease option is made of two terms: a lease (Assured Shorthold Tenancy) combined with an option agreement that may or may not come attached with a contract of sale. It is a way to on sell property using ‘vendor terms sales’. Lease options are also known as ‘rent-to-own’ or ‘rent-to buy’. An option grants the party owning the option, the optionee, the exclusive, unrestricted and irrevocable right to purchase the property from the party selling the option, the optionor, during the specified period of time. You could equally consider them to be an extended purchase over a longer period of time to a traditional purchase. Vendor: also means ’seller’ in reference to the term ‘vendor terms sales’. Vendor terms sales: Many people interchange the following words: vendor terms sales, instalment sales, and lease options. The vendor or seller creates the terms and conditions for selling their property to a buyer by using a lease option or an instalment contract. Five Key Elements You Must Define : December 2008 12 Five Key Elements You Must Define Five key elements you must define to form two agreements: a lease-option Upfront option fee (deposit) Instalment option fees Monthly rent Option period and terms of paperwork Sale price How do you determine these elements to create Assured Positive Cashflow Transactions? How do you create a win-win transactions? Read the e-book: Assured Positive Cashflow E-book: Assured Positive Cashflow : December 2008 13 E-book: Assured Positive Cashflow The e-book content Why cash flow investing prevails over capital growth investing Wealth creation through the right exit strategy Creating positive cash flow through lease options Unique insight and techniques to define the five key elements that matter Many case studies How to build your lease option team (solicitors, agents, mortgage adviser,…) Ten easy steps to convert your tenancy agreement into a lease option How to close a sale, exchange contract… Leas option portfolio management Your exit strategy for each property in your lease option portfolio Problem solving Free template agreements Free educational report for your prospective tenant-buyers Free advertising examples In case you need some help to convert your tenancy agreement into a lease option agreement The e-book price £17.50 without bonuses £37.00 with bonuses Service Beyond Education : December 2008 14 Service Beyond Education Level 0 service: Education E-book, articles, educate tenant buyers, templates agreement Level 1 service: Portfolio assessment (£150.00 every six properties) Financial report for each property Equity Existing finance terms Cash flow Risks/reward position Portfolio metrics LTV Yield Overall cashflow Net worth Internal Rate of Return Your Power Team Review More tips to assist implement your lease option agreement and achieve positive cash flow Level 2 service: Convert your buy-to-let into a Lease (between £1500.00 to £3000 per properties) Full service to help you enjoy positive cash flow from you property and a healthy lump sum : solicitors, agreements, advertising, find buyers, managing agents Set you up to become a lease option serial investors More tips to exit strategies Start today with no risks! : December 2008 15 Start today with no risks! Level 0 service: Education Level 1 service: Portfolio assessment (£150.00 every 6 properties) Level 2 service: Convert your buy-to-let into a Lease (between £1500.00 to £3000) Contact Antoinette for all your enquiries

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