Buy a Property in Lagos, Nigeria through a Lease Purchase Agreement
Are you familiar with lease purchase agreement? Purchasing a property, especially a house, is a dream for most of us. The thought of having your own space, the feeling of having living security, and knowing that it is an appreciating investment. But, with all the bills piling up, purchasing a house seems impractical given that most properties are expensive. However, there is an option called “rent-to-own” that is most beneficial for both tenant and landlord. You might be surprised to know that you can buy a Property in Lagos, Nigeria through a lease purchase agreement.
Lease Purchase Agreement: What is rent-to-own?
Rent to own is a legal agreement between a tenant and a landlord wherein the former should rent a property for a specific period of time and will eventually take ownership of the property after they have finished paying the remaining balance. The tenant needs to have a down payment and the remaining balance would serve as the lease. Note that there are two types of rent-to-own contracts which are lease option and lease purchase that buyers should be knowledgeable about before entering the agreement.
Lease Purchase vs. Lease Option
Lease option allows tenants to rent a house without the option of buying it when the lease expires. Simply, tenants don’t have the obligation to buy the property. They can just walk out of the lease when it ends. However, it is not the case for lease purchase. Once the tenant chooses a lease purchase, they are obligated to buy the property when the lease expires. This is a win-win situation for both tenants and landlords. For tenants, it allows them to move into a house without having the need to deal with a huge one-time payment. While for landlords, it grants them consistent monthly income.
Advantages of utilizing lease purchase to buy a property
If you want to have your own property but can only afford the monthly rental, then lease purchase is a great deal for you. Normally, the landlord will require a down payment and the remaining balance will serve as your monthly rental. Once you’ve paid the down payment, you have secluded the property and the landlord cannot withdraw from the agreement anymore. If you’re still thinking of using lease purchase to buy a property, you may want to read some of its advantages.
How the buyer benefits:
- You can still take possession of a property even if you can’t obtain a mortgage. Moreover, buying a property using lease purchase may help you improve your credit score.
- If the value of the property increases during the lease period, you will get the benefit of the additional equity.
- If the lease expires, you don’t have to worry about moving out.
- You will take full ownership of the house; you’ll be required for its maintenance, repair, and improvements.
How the owner benefits:
- You will secure a monthly profit and lock in a sure buyer of the property.
- If the tenants legally withdraw form the contract, you can keep the down payment
- You have the choice to find responsible tenants to keep the property in good condition.
- You can choose the purchase price in advance.
Lease Property Agreement: Where can you find a lease purchase?
Due to the economic climate, it is almost impossible to purchase a property that you can afford. Good thing is, that there are different websites that serve as a significant platform in property listing to both buyer and seller. It allows them to look into a property that they want to purchase without having the need to visit it first. With just a few taps, you can find the house of your dreams.
You may want to visit Plisthub, a prominent Nigerian property listing platform. If you are thinking of buying a property in Lagos, Nigeria, Plisthub is the place to go to. Different properties in Nigeria are listed in this website and it connects property seekers to real estate agents, developers, and agencies. Rest assured that all posted property listings are verified and are safe to buy.
Check Plisthub now and find the property of your dreams!