Creating a win / win with lease options

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  ?


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