Property Investment Market Behind The Times As Lease Options Finally Look To Help First Time Buyers Get On The Ladder!

Property Investment

In 2009, the BBC reported that the average UK house price was £224,064 and the average deposit needed to secure a mortgage works out at an est. £32k, no mean feat for a first time buyer! Banks are traditionally looking for a deposit of between 15-30%, meaning that so many first time buyers are unable to embark on the ladder and are stuck paying dead rent money. The solution? Lease Options, through Rent 2 Own Homes who offers a tenant buyer the opportunity to raise as little as 2-3% in order to secure the option to buy a home, which is not only manageable but means they will have the option to property investment between a 3-6 year period. And yet, less than 2% of the current UK population are using lease options, whereas in Australia and USA, lease options was introduced over 30 years ago and now is the third way of buying property after the traditional mortgage and buy-to-let routes! This is an old and established way of buying property for these countries, but a new way for the UK. The UK’s Number 1 Creative Property Investment Solutions Expert Sarah Barrett is championing for this method to achieve recognition in the UK. She comments:“With inflation on the rise and therefore rates going up, there is increasing insecurity in the property market. For many of us who do not want to take the risk, or just can’t afford to, it’s time to look at other options, namely lease options. Lease options are the way to freeze prices today”. Life doesn’t stop just because the banks decide it should. Lease options are a proven and tested way to buy property. Elizabeth, 24 and Ian, 26 live in Bristol and are first time buyers. In December 2006, they were looking to buy a flat for £170k, but they could not afford to do this the traditional way. Instead Sarah at Rent 2 Own Homes helped them to buy the house via a lease option with a deposit of £5,100 not the 15% (£25,500) the banks wanted and the option to buy the flat outright in January 2011 for £182k. During this time they can sleep easy, property prices will rise and they’re no longer paying dead money for rent! With 13% of 18-34 year olds planning to buy a house within the next 12 months, let’s hope the word about lease options spreads fast.

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