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I'm close to completing on a semi-detached house on a half-acre plot in the Hull area, and I'm looking for a tenant who would be interested in taking a lease option on it at a discounted price.

Here's how it would work.

The value of the house in it's current condition is £175,000 minimum - the house next door sold for this price in a similar condition two years ago. It's perfectly habitable, but it does need updating (dated kitchen, pink wallpaper etc.). If you were to spend £10,000 updating it, it would sell for £190,000+ (comparables available).

The usual rent for this house would be around £600 per month.

You would pay £950 per month to rent it, PLUS you would have a written option to buy the property for £165,000 at any time in the next three years.

This means that you could move in in August, treat it as your own home, do it up at your leisure and, within three years, get it valued. Assuming you take it up to a good standard over the next three years, and assuming a 5% p.a. growth in house prices in the area, you could expect a valuation in three years time of £225,000. You would then only require a 75% mortgage in order to buy it from me for £165,000, meaning you would not require a deposit.

Once you've purchased (and remember, the agreement to is an option, so you're not obliged to buy) you immediately have equity in the house of £60,000. Of course, there are costs to come off this. Let's say you spend £10,000 upgrading the property, plus you're paying me an extra £350 a month to live there over a (maximum) three year period, which is a further £12,600. However, you get the benefit of three years growth, and after these costs, your equity in the property is £37,400.

This is an ideal solution if you're having difficulty getting on to the housing ladder, or if you want an easy, low-cost way into property renovation.

I have all the legal paperwork required for this transaction, and any solicitor will be able to take care of it for you.

If you want to talk this through further, email me or give me a call on 07831-412088.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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