UK Residential Property Lease Option Glossary

Lease option
Lease option is made of two terms: a lease (Assured Shorthold Tenancy) combined with an option agreement that may or may not come attached with a contract of sale. It is a way to on sell property using ‘vendor terms sales’.
Lease options are also known as ‘rent-to-own’ or ‘rent-to-buy’. You could equally consider them to be an extended purchase over a longer period of time to a traditional purchase.

Option
An option grants the party owning the option, the optionee, the exclusive, unrestricted and irrevocable right to purchase the property from the party selling the option, the optionor, during the specified period of time.

Vendor
The word ‘vendor’ also means ’seller’ in reference to the term ‘vendor terms sales’.

Vendor terms sales
Many people interchange the following words: vendor terms sales, instalment sales, and lease options.
The vendor or seller creates the terms and conditions for selling their property to a buyer by using a lease option or an instalment contract.

http://en.wikipedia.org/wiki/Lease-option

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