For some years, the lease purchase enjoys a growing popularity. It is a very special form of home acquisition. The buyer lives for rent, but his rent payments are partially credited to a pre-determined purchase price, ie the purchase price is gradually paid.
A hire purchase can be realized comparatively easily. The basis forms – as with the purchase of real estate – a notarized contract. As soon as this is signed, it is already going on, ie the tenant can move in at the agreed time and his rent payments will be credited accordingly.
Most contracts are set up so that the purchase of real estate
For example, a complete purchase, can be brought forward if certain conditions are met. If, for example, the owner suddenly no longer wants to let, but wants to sell, the tenant is on the train. Then, depending on how the contract was formulated, the outstanding purchase price must be paid promptly. Not infrequently, the own funds do not suffice in such a situation, so that real estate financing is required.
Possibility of financing should exist from the beginning
Unfortunately, many people who opt for a hire purchase do not come up with the idea of checking with the notary before signing to see if they would get a financing commitment. This is highly advisable, because if it goes to the purchase and then finds no bank that gives a real estate loan, the project home is at risk. Because the previous tenant can not spend the purchase price, the owner is usually forced to offer the property on the open market. For the tenant – if he wants to continue to purchase the object – that would be extremely annoying.
It is therefore safer to check in advance whether, if necessary, there is the possibility of financing the object. Then there is a high probability that a real estate loan will be available at a later date.