What is a Lease Purchase ?
lease purchase is a combination of a real estate rental and
real estate sale. It is a lease for a fixed time period such
as 12 or 36 months with a provision that at the end of the lease
period, the purchase agreement portion of the contract is executed.
lease purchase allows a buyer to live in the home while you
establish your credit, save for a down payment or otherwise
prepare to buy. By buying a home with lease purchase terms you
also have time to create a good payment history, which could
help you in acquire a new mortgage are favorable rates.
lease purchase gives the buyer the option to lock in the purchase
price, then complete the purchase at anytime during the traditional
12-36 month lease period or as spelled out in the agreement.
the buyer in a lease purchase, you are obligated to complete
the purchase of a home or you may be subject to the loss of
your deposit. The seller is, legally required, during the lease
purchase period, to sell to you, and no one else. If you have
bruised or bad credit, that is repairable, a lease purchase
may be the best solution to home ownership.