Who Can Benefit From a Lease Purchase Agreement?

Everyone dream to live in their own home but buying apayment towards the final purchase price of the
home is not possible for everyone. Buying a homehome. Option fee is also mentioned in the contract.
needs money and arrangement of money to buy aAccording to a lease purchase agreement, the buyer
home is not possible for everyone. There may beis also required to buy the house at the time of
many reasons behind the inability of many people tocontract expiry. You will not get your money back if
arrange fund for buying a house such as bad credit,you do not purchase the house you are living in
low income and non acceptance of loan application bybecause the down payment is always non refundable
the bank. If you cannot arrange fund to buy a home ofin lease purchase deals whether you plan to buy the
your choice then tomorrow cost of the same homehouse at the time of contract expiry or look for any
may be more than what it is today so if you wish toother better choice. If the buyer has insufficient fund at
own a home then you should find a way today tothe time of contract expiry to buy the house then the
secure your home.lease period can also be extended if the seller also
A lease purchase agreement is a good solution for allagrees with it. So the buyers should decide the lease
those people who wish to own a home but do notperiod only after carefully inspecting their financial
have enough money to buy a home. The concept ofstrength.
lease purchase deals is, reserve your home now andLease purchase agreement is one of innovative way
pay later. It is a type of contract between the sellerin the real estate market to secure your home today
and the buyer in which the seller allows the buyer toand pay later. So those people who wish to own a
live in his home for a fixed period of time and for fixedhome but do not have sufficient fund at present should
option fee. Fixed period of time may vary from 1 yearinspect their financial strength and if they find
to 3 years and fixed option fee may vary from 2.5%themselves as a qualified tenant who can become a
to 7% of the total cost of home. Fixed option fee maybuyer later then they should try to secure a home
be negotiated at the agreement. The option fee thatgood for them and their family.
the buyer pays to the seller is considered as the down