Why Rent to Sell?

Why Rent to Sell?

Our Rent to Sell Scheme is a great way to sell your property for the price you want and make extra money on it over the next several years, without the hassle of being a Landlord. This is also known as a Lease Option. This can work for anybody looking to sell, and especially for people that;

  • Are in negative equity and not getting the price they need on the open market.
  • Looking to get rid of the property quickly and have nothing more to do with it.
  • Landlords that are looking to sell their rental property.
  • Homeowners that are unable to sell as buyers are not being able to get a mortgage.

​​So what’s the benefits of Rent to Sell/Lease Options?

  • Get the full market value price for your property.
  • Make money on the rental, whilst having a fixed sale price in the future.
  • The buyer take care of all maintenance, bills and insurances, freeing you of any Landlord responsibilities.
  • Complete peace of mind knowing your property is sold and in safe hands.
  • ​Move on from the day the paperwork is signed and not have to wait for months upon end for the sale to go through before moving.

​How does it work?

The 4 simple steps

  • ​​​​Agree a fixed sale price and a term in which to sell your property.
  • Agree a monthly fee with the buyer and decide how much of that will go towards the sale price.
  • Enjoy the monthly income every month without having to do anything for it.
  • Once the buyer completes the purchase you will then receive the remaining amount from the fixed sale price.


I’m sure you have some questions. Here are some of the questions we get asked all the time with the answers.

The period for the lease option before final purchase can vary and is agreed in the terms of the individual lease option contract. Usually it will be between 5 and 21 years.
There are usually break clauses within the Lease Option Agreement at given intervals at which time the Lease Option holder can decide not to pursue the agreement. In this instance the ownership of the property simply reverts in full back to the original owner i.e. the vendor. In that case the vendor will have had the benefit of the mortgage being paid for the entire period the option has been in place. It is unlikely that the Option Holder would choose not to purchase at the end of the Option period.
No. All legal costs in setting up the agreement will be met by us, up to a value of £500. There should be no cost to the vendor in setting up the agreement.
No. Under the lease option agreement, which is a binding contract, the lease option holder has to make the mortgage payments to your lender.
No. Under the lease option agreement, which is a binding contract, the lease option holder has to make the mortgage payments to your lender.
No. Under the lease option agreement, which is a binding contract, the lease option holder is responsible for letting the property should they choose to do so.
Yes. Having this house in your name should not affect your ability to secure another mortgage on a different house. We can actually put you in touch with lenders who are familiar with the lease options and are happy to lend on this basis.
Unfortunately, no you cannot. The government does not take into account the circumstances of the lease option and deems that as you are a house owner you cannot claim benefits for accommodation elsewhere.
The lease option gives you the immediate freedom to walk away from the property with no ongoing financial responsibility and at no cost. It allows the Option holder to delay the purchase until financing is more favourable. By delaying the transaction, the option holder is often able to agree a price sufficient to cover the vendor’s debts where otherwise a traditional immediate purchase might fall short. The agreement is formed via solicitors so that there is no doubt or confusion as to the nature of the agreement and it can be formulated and completed very quickly, within a period of weeks.
There are few for the vendor under the lease option agreement. In fact, most of the risk is held by the Option holder. If the vendor for example is declared bankrupt, then there is the risk the property can be repossessed and the Lease Option holder can lose the investment. Similarly, if mortgage rates rise sharply effecting the mortgage repayments, then the Lease Option holder is exposed to this risk (not the vendor), as they are responsible for meeting the mortgage payments. The Lease Option holder can decide for whatever reason not to pursue the right to buy at the agreed price, thus making use of any break clause in the contract. In this instance ownership simply reverts back to the vendor. In this case the vendor simply inherits an asset which has been financed by a 3rdparty for the given period of the Lease Option -up to the point at which the break clause has been exercised.
The Lease Option is fast and easy. The Lease Option can also allow the vendor to sell when otherwise they may not be able to do so, for example due to market constraints. In many cases the market value of the property has dropped so that there is little or no equity left in the property i.e. the mortgage is equal to, or greater than the current market value of the property. In this instance it can be very difficult to sell, particularly in a depressed market where buyers are few and are making low offers in the face of difficult financing conditions. Many vendors actually end up agreeing a price below their mortgage liability simply to off-load the property and so end up with a debt and no asset. By pursuing the Lease Option agreement, often a price can be agreed at the mortgage level so that the vendor is not left with any outstanding debt. This is possible because the actual final purchase transaction is delayed.