The Mortgage and Property Shop - Info Centre - Lease to Purchase Information
Should you wish to take advantage of the 4 year, delayed option to buy, there are many benefits to you:
- No large deposits required therefore, no need to lose any money through unfavourable exchange rates.
- No need to attempt obtaining a mortgage in a time when banks are not lending easily.
- Buy at well below the market value.
- Buy yourself time to assess the market. As you are buying in 4 years time you are able to watch the market and sell at your leisure when market prices rise. This way you ensure your maximum profit.
- Win/win situation for buyers and vendors that need out of the property.
- Legal procedure inscribed in the land registry and notarized.
- You have full rights to the property for 4 years to: live in, rent or sell on.
As you can understand, an individual cannot buy this property directly from a bank. Due to the Mortgage and Property Shops long standing relationships with the banks and with their law companies relationships with the banks, they are able to obtain this property from the bank before it goes to court at the mortgage debt price.
Example for purchasing a 500.000 € Villa
Purchasing Information:
| Value of property | 500.000 | € |
| Actual price of property | 383.000 | € |
Comparison of costs
COSTINGS of buying as normal sale
| 7% IVA (TAX) | 26.810 | € |
| 1.6% notary & land registry fees | 6.128 | € |
| Est. 1% legal fees | 3.830 | € |
| Est. 2% mortgage arrangement fee | 7.660 | € |
| Total | 44.428 | € |
| PLUS – 30% deposit for mortgage | 114.900 | € |
| Complete buying costs | 159.328 | € |
COSTINGS with delayed option to buy
| Value of Property | 500.000 | € |
| Actual price | 383.000 | € |
| Outstanding mortgage amount | 337.000 | € |
| (Monthly mortgage payments) | 2.700 | € |
| Buying costs / fees | 25.000 | € |
| Estimated notary fees | 2.500 | € |
| Complete buying costs | 27.500 | € |
Total Initial Costs needed for delayed payment option example
27.500 €
After this, the only payment would be your monthly mortgage – 2.700 €