Lease Options

You have finally come to a decision.  You want to buy that beach house that you have been renting for years.  You are very fortunate because there was a lease option in the lease contract that you signed for the property.  So, you smile and proceeded to make plans to finally make that beach house your true home.

A lease option is actually the provision contained in a lease contract, which enables a renter to buy the rented property for a specified price within a certain period of time.  Often, these lease option agreements call for a portion of the rent to be set aside as a future down payment for the purchase of the property.  These lease options are often used in cases when prospective home buyers don't have enough money to cover the down payment and costs for closing the purchase of a desired home. 

This lease option is actually known as rent credit and is acceptable among lenders as part of the down payment for a house purchase if the payments made for the rent exceeds the levels for rent in the market.  Of course, a valid copy of the lease to purchase agreement that you have with the seller of the property must also be attached to the loan application that you will have with the lender.

A number of advantages can be gained by the seller if he applies a lease option on the rental or sale of his property.  This is especially true when the market is slow.  Aside from getting the top value in the market for his property, he will also get a monthly rent that is higher than the rental level in the market.  Plus there is the consideration of the tax free use of the lease option until it expires or is used by the renter.  It is also very probable that the renter would treat his property like he is owner securing the safety of the property.

If you are somebody who is wanting to avail of such lease options, there now many available materials for you to read or you could even browse the Internet or contact your real estate agent.  A real estate attorney might even have some information on lease options prepared for those who might want to know.  Because if you are really considering taking on a lease option, you have to gather a lot of information about it first to make sure that you understand its pro's and con's.  You also have to have a financial advisor or a lawyer to go over any paperwork on the lease option before you sign on the dotted line.

But, if you are already well on your way on exercising that lease option right, might as well get on it and buy that home by the beach now.  There is nothing as fulfilling as truly owning the roof over your head after you have been renting for almost half of your life.