22 Mar Creating a win / win with lease options
Property is a peoples game. If you genuinely try to help people in the deals that you structure you will put together great win / win opportunities for all parties.
In this particular case i was able to stop an elderly gentlemen from being repossessed. I paid off his arrears of £3500 and secured the property on a 5 year lease option agreement.
The deal looked like this
Option price: £200K
Option fee: £3500
Term: 5 years
After a number of years of letting the property out I assigned the option contract to a new buyer for £20K which i have already received. The new buyer has refurbished the property which is now valued at £250K so he has also built in £30K equity for him self. (he will be completing on the sale shortly at £220K of which he has already paid £20K)
The outstanding mortgage is £170K so the vendor stands to get £30K when this transaction completes.
So in summary from almost being repossessed 3 1/2 years ago the original seller will get £30K to enjoy his retirement with, the new buyer has £30K of equity built into the property and i made a tidy profit.
Can you see the win / win / win above ?