Lease Option Agreements | What Is A Lease Option?

Lease Option Agreements | What Is A Lease Option?

In this video Samuel reveals what Lease Option Agreements (LOA) are and how you can use them to invest in property in the UK with no money down. A lease option agreement UK can help property investors get more property without the need for money to pay for the investment.

How To Start Investing In Property:

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How To Buy A House with No Money Down:

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[TuscanyFTX]

@Samuel Leeds. There seems to be a lot of confusion as to how these work. Hopefully this explanation will help people understand how they work in here in the states at least. If there’s anything I missed or am wrong about please feel free to correct me.

It’s a still LEASE. Meaning you’re still paying the owner every month. That said, Samuel try’s to find landlords/property owners that are tired of dealing with it and want out of the property or simply can’t keep up with it (financially, physically, mentally) and sells them on the idea that they will still receive money for the property every month. Be it profit in their pockets or to continue making the payments (if it’s still being financed) and will also assume all responsibility of the property. Such as maintenance, renting to other tenants etc.

However if you sublet it out and become your own landlord at a higher rate than what the mortgage payment or whatever the original owner agrees your payment to them would be then you keep that profit.

Part of your lease payment is supposed to go towards the total “cash” value the seller wants for the property on the day the LOA is written up and signed.

If 50% of your payments over the course of the lease equals the total “cash” purchase price originally agreed upon in the lease agreement then you become the owner of the property without having to finance the property.

In which case if the property has appreciated you will have walked into a property that has literally cost you nothing, (so long as you were able to keep it rented out yourself at a higher return than what you spent towards your lease payment) now has positive equity and becomes 100% profit as the property has been paid off whether you continue to rent it or sell it.

If you choose not to buy it and walk away before 50% of the payments on the lease terms are made, any money you’ve earned over what your lease payments were, are profit in your pocket.

Hope this helps people trying to wrap their heads around the idea of LOA’s.

[SylvinJ]

So how does the seller benefit from this strategy if you don't buy it straight away and if you choose not to buy it in the future? i struggle to see why any seller would agree to this.

[TubbyYoungbrosArmy]

How would anybody accept an agreement that would give full rights of a home or property for an OPTION of getting paid in a few years? I'm glad it can work for you but to anybody else, it just doesn't seem possible that a person, whether they are motivated or not, to give a property's rights to someone else for no cash but a slight chance of getting paid in the future. If I'm missing something, please someone let me know what else is offered to get the seller to agree to a deal like this.

[myob]

I have no idea why not one property expert cannot answer the most simple question of is it possible to deal source either HMO opportunities, social housing, lease options and set agreement to collect residual monthly income 🤷🏾🙄😒

[jundtwi]

Sam, just got your book man 😬👍🏻 you inspired me, thanks.

[justsmashing]

😂..I’m tired of owning property…here’s a house for free…pay me whenever, or never…😂🤣😂

[CeLeRitAs]

Hi Samuel,


awesome one as usual!
Does the owner benefit from some monthly Cashflow (agreed amount from a rent) until lease expire as well?

[gabbegubbe]

in this case the vendor is under great risk = stupid 😨😨

[bernardomonteiro]

One word. Amazing
Just learned something new, pumped to start taking action 🙏🏼

[jamesm]

Stephen Smith, housing director at Legal & General. "Homeowners would need their mortgage lender's permission for this kind of deal and I doubt they'd give it."

[jkb]

Hi, is it a good idea to BUY lease options or not? I see some for sale for £4, 000 for 5, 8 or 10 years. Does that mean that's all I pay but can lease it for the specified time? Is this type of lease purchasing safe or is it better to do it your way, spending no money?

[Drakotar]

If this is the case, why isn’t everyone doing this instead of mortgages?Genuinely curious as it seems way too good to be true.

[tomwag]

Hi Sam great video as always, you never go into the legal side of things, do you need a specialised solicitor? do you and the landlord share the fee's? how does the law side of things work?

[UltimateBargains]

The Legality of Sandwich Lease Options
Real Estate Option Contract Basics

[BB-hktt]

Hi Samuel, I have been watching through your videos for a while now but I have a question or two. 1)Are lease option agreements something you can do anywhere in the world or just in select countries and 2)What do you need to set them up (accountant, lawyer, realator, etc.)?


Thanks for your time and keep it up

[SameeK]

Great video as usual. My question is why wouldn't the landlords just rent it out themselves and sell in 5 years when the price increases? With LOA you say it's not an obligation on the buyer side but how about for the seller? Can he pull out? In 5 years why wouldn't the landlord just sell it himself for market value?

Thanks

[thatldnfella]

I'm not a LOSER samuel I'll be seeing you soon m8 God bless

[fizi]

Thank you for the insightful explanation.

I find lease options particularly intriguing as they offer an effective "exit strategy" for landlords facing challenges such as bad credit, exploitation by cash buying companies, high interest rates upon expiry of fixed rates, and the burden of government legislation and regulations. (IN SHORT, THIS IS YOUR GET OUT OF JAIL FREE CARD).

Additionally, concerns about upcoming changes, such as the Council tax increase for second homes in April 2025 and the Renter's Reform Bill, further underscore the appeal of exploring lease options as a viable solution. 👍🙂

[roberts]

Fantastic explanation! However, whenever I explain this to someone they think it's a scam. But I suppose the property market in Sydney is quite different

[aleemb]

So do u have to be 18 or can u be younger e.g. 15, 16