What Does Leasing A Property Mean?

Posted on 27 February 2020

A Lease option is an agreement that lets you take charge of a property, and also generate income from it. However, you do not own the property yet, but you do have the option to buy said property later on.

There are 4 terms that need to be agreed with every lease option agreement.

The Monthly Payment: This amount will have to be agreed by the owner of the property and the person who wants to lease. This amount will usually be considered based on how much the owner needs to cover most of their costs.

How Long the Agreement Will Last: The amount of time that you have to lease the property will need to be agreed, so there is a date where the contract ends, and the person with the lease option can decide whether they want to purchase the property, or whether they would not like to do so.

The Price of the Property for Purchase: An agreement of how much the property will be purchased for, if the lease holder decides to purchase it at the end of the contract.

An Upfront Payment: For the agreement to actually be legally binding, a purchase has to be made. You can ‘buy’ the option for as little as £1, as long as there is some kind of payment, otherwise the agreement will not be legally binding.

If you are looking for a commercial lease in the West Sussex region, then make sure to contact us so that we can help you!

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