Lease with Option to Purchase Information for both Seller & Purchaser
A lease-to-own house purchase (also “rent-to-own purchase” or “lease purchase”) is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, at an agreed-upon price. The borrower pays an option fee, 1% to 5% of the price, which is credited to the purchase price. The borrower pays rent, and an additional rent premium that is also credited to the purchase price. If the purchase option is not exercised, the buyer can lose both the option fee and the rent premium.
Lease-purchase plans have a solid economic rationale and as with any kind of financial contract, a lease purchase deal can be structure so that both parties benefit equally.
If you are a seller or someone who would like to lease with option to purchase and would like more information on leasing with option to purchase please fill our information forms.