Welcome to part two of this valuable series of tele-seminars on the UK’s first £1M Lease Options challenge!
We answered the following questions on the call:
- Say you have a lease option with some tenants and they pay you a deposit upfront and monthly top-ups for the option to buy the house they are renting years down the line. What happens to the deposit money and top up money if they decide not to buy the house in the end? Would you return it to them or is it yours to keep?
- It was stated that it should be a fee up front not a deposit to avoid confusion etc.. The top up, does this go towards the purchase price or is it just a premium rent? I can see 110k (option purchase price) less 100k (current price) = 10k where does the other £1 come from?
- I can see the benefit to the TB as they can purchase the house at 110k and presumably if its over 5yrs or so the house will then be worth much more, so a good incentive.
- I want to do some leaflet drops is there a particular area that lease options work best? if im doing a lease option deal were there is no mortgage on the vendors house but they want a lump sum to spend on thier new house could i get them to re mortgage and me to +pay the re payments if this is possible what type of mortgage do i take out ? Im guessing a buy to let mortgage if so how would I raise the 25% deposite for the buy to let mortgage ?
- Typically what % below open market rent do you offer for guaranteed rent to landlords for say 3 to 5 year leases? And do you typically cover maintenance? To what amounts? e.g. £100 per issue…etc.
- Do the options need to be registered with the lenders ( as per commercial) to make them valid
- What is the best way to cover yourself against interest rate inflation for the term of the lease?
- I am in talks with a vendor at the moment he has a property thats worth 100k but has a mortgage on the property of 120k ! I am struggling to structure this deal…..any advice would be really appreciated!! mortgage is 450.00 rentals in the area between 625-650
and much more…
Enjoy the audio!
£1 Million Lease Options Challenge!
Parmdeep Vadesha, Shimon Rudich, Hanif Khan, Phil Martin &
Richard Shepherd
Parmdeep Vadesha created the Property Tycoons Community website because he couldn't find anywhere on the web that brought together people who shared his passion - the art of finding and buying investment properties at knock down bargain basement prices.
Parmdeep stumbled into property at the age of 23 whilst working nightshifts as a warehouse operative at a local crisps factory for £5 per hour. He started in property without any experience or knowledge of the business. He invested all of his spare time into learning how to find distressed sellers of bargain properties. Within 3 years he was financially free purely through his property related investments and businesses. 
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