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Does Lease Option really work???

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Hi all,


It's my first post on the forum.

A very good friend of mine has got into some difficulty in paying his mortgage. He obviously has been searching the net on what he can do so as not to lose the property if it comes to that.


He has been reading up on lease options and although it all seems legit and genuine, has anybody actually done this and come out the other side smiling.


All opinions welcome.

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Hello and welcome to CAG.


I've moved you to the property forum here and left you a link to follow. The forum guys should be along over the course of the day, as their other lives permit.


My best, HB

Illegitimi non carborundum




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My friend is looking at getting some cash up front and an investor said he will cover the the mortgage payments upto 5 yrs with an option to buy the property.

If the investor buys then yes he will have sold his house and that should give him enough time to sort his circumstances.

If he doesn't buy - he will have got his mortgage paid for 5 yrs and have the house handed back. Again, 5 yrs would be ample time for him to get his life back on track.


Has anyone ever used this method and what can go wrong, as it is an easy fix for the problem as of now.

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Is this a private individual or a company?


Edit: I don't see what's in it for the investor if they part with money upfront and pay the loan, then don't



Edited by honeybee13

Illegitimi non carborundum




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I believe this investor does have his own company and from what I have read - they put a tenant in the property and charge extra to go towards a deposit for the tenant who is then in a better position to buy.

The investor I imagine will make his money off extra bit of rent and any increase in house price after 5 yrs.


It's all contracted with solicitors and it must be a better option than losing a house if it comes to that?

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We haven't come across that one. After speaking with a few serious investors, we were told they make an agreement with the tenant buyer and signed off with solicitors etc. Anyway if the house stood empty, the investor would still be contracted to pay the mortgage.

Doesn't look very popular even though it could save the house from repossession.

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I did have a quick look at lease options and very quickly came to the following conclusions:



  • It is pretty much an unregulated field.
  • There is a very real risk that you could still lose the property and end up bankrupt as a result.
  • Long term, it will end up costing considerably more than paying off a mortgage.

The best option for the friend is to enter in to discussions with the mortgage lender and try to negotiate lower repayments until finances improve.





No... you can't eat my brain just yet. I need it a little while longer.

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