The Property Investment Department at Attwells Solicitors has developed a package of sandwich lease documents to enable investors to secure these types of deals and to complete them quickly.
Simply explained, the scheme would be set up as follows:
- An investor secures an option over the property at a below market value price. The option is exercisable by the investor over an agreed period of time
- The investor manages the tenant on a day to day basis and makes the necessary payments to the mortgage companies each month. The seller has no involvement with the property throughout the option period
- The tenant at the property pays a higher rent each month to the investor and some of that increased rent is paid into a deposit account. This accrues over the period of time the option is in force
- At the end of the option period, and depending on the market conditions at the time, the investor can exercise the option and purchase the property from the seller
- In turn, the tenant raises a mortgage and purchases the property from the investor at full market value. The accrued deposit is returned to the tenant and is used as the deposit to purchase the property
If you are interested in this documentation or similar types of transactions, please email firstname.lastname@example.org