View Original Topic: Lease Options

Posted By: Peter A

Lease options are becoming a more common method of controlling property in the UK, do they exist in Cyprus?

Posted By: Dania

Can you be a bit more specific, what do you mean by "control"? Are you talking commercial or residential property? Do you have a specific idea in mind, if you do perhaps we can advise. Thanks

Posted By: AGKouzali

Can i kindly ask you to provide us with more information in order to be able to help you? Kind regards A & G KOUZALI LAW OFFICE

Posted By: Peter A

Apologies for the delay, I'm not an expert but as I understand them, they are generally used for distressed sellers of private property. The principle being that you pay a nominal fee eg £1 for the right to buy the property at some point in the future eg 5years. You take on the mortgage payments that are still in the owners name and rent the property to a tenant.There are various strategies but the aim is to produce positive cash flow and when and if you exercise the option, gain from any growth in value of the property.Obviously the paperwork has to be legally watertight to ensure everyone's interests are protected.

Posted By: pav

Peter A wrote: Apologies for the delay, I'm not an expert but as I understand them, they are generally used for distressed sellers of private property. The principle being that you pay a nominal fee eg £1 for the right to buy the property at some point in the future eg 5years. You take on the mortgage payments that are still in the owners name and rent the property to a tenant.There are various strategies but the aim is to produce positive cash flow and when and if you exercise the option, gain from any growth in value of the property.Obviously the paperwork has to be legally watertight to ensure everyone's interests are protected. legally-watertight-cyprus. not as easy as it sounds :roll: :roll: paul.

Posted By: pantheman

Peter A wrote: Apologies for the delay, I'm not an expert but as I understand them, they are generally used for distressed sellers of private property. The principle being that you pay a nominal fee eg £1 for the right to buy the property at some point in the future eg 5years. You take on the mortgage payments that are still in the owners name and rent the property to a tenant.There are various strategies but the aim is to produce positive cash flow and when and if you exercise the option, gain from any growth in value of the property.Obviously the paperwork has to be legally watertight to ensure everyone's interests are protected. hmm! So if you can rent the property and be cash positive to cover the mortgage, why wouldn't the original owner do it?? Then, in 5 years time when things have inproved (hopefully) he can sell it and make the profit. Your proposal, does not sond right unless I have misunderstood it. Further, if it is by pure agreement that you will pay the mortgage (as opposed totransfering it), whats to say you will keep up the payments when you have been collecting the rents??? Too many if and buts for me I'mafraid, unless you can explain further.

Posted By: Dania

I cannot see that option working here. Too many variables and generally the rent does not cover the mortgage anyway. Nice idea though!