Tips on long-term leases

The real estate market has changed a lot in recent years. The barriers to obtaining house loans are increasing. As a result, the market is more focused on long-term leases.

Are you aware of all the details about long-term leases? Do you know if landlords can start the sales process of a property while having a tenant? Do tenants know all the existing possibilities while leasing a house?

Find out some important aspects of this topic, which has been very commented in recent times. (to get known more about long-term leases, see here)

• Do you know if a leasehold property can be sold?
  
  

Truly, it can! The owner, despite leasing the house to a tenant, never loses the right to the property. The landlord's duty, as stipulated by law, is to give preference to the tenant who has lived in the property for at least 2 years (new law in force since October 2018, 3 years was the previous law). All sales conditions must be sent by registered mail to the tenant. Also, the tenant’s reply must be sent by registered post within 8 or 30 days, depending on the legal or conventional preference.

If the tenant's lease is still within the period specified in the contract, or if the answer was negative to the rental-purchase option, the contract maintains. Until the contract’s deadline, the only difference will be the landlord’s name. The former owner must communicate the sale to the tenant, only for monthly payments related issues to, in this case, the new landlord.

If the landlord owns a building and wants to sell it, the tenant only needs to show the intent to buy the flat where he is living in. The value that you must specify on a registered post needs to be proportional to a flat after the building is evaluated as a whole. It is important that the owner knows that he must present every value involved in the property sale.

• Do you know about other lease methods besides the conventional?
  
  

As mentioned before, the real estate market is changing. Real estate leasing contracts are coming up more and more because there are no other options to get a house.

For those looking to invest in a property, but can’t do it right now, a lease method exists in order to help you achieve your future plans. The rental-purchase option is one of the best choices to guarantee your own house.

One of the advantages of this kind of contract is to guarantee a house until you can get all the necessary conditions to buy it. Meanwhile, you can lease the property for the time stipulated on the contract. This sort of contract is not much different from the conventional lease contracts, it only has an extra clause where the sale link is specified and the value is agreed on previously between the landlord and the tenant. The tenant is not bound by the purchase of the property if he later fails to meet all the conditions for the purchase or if he finds a better deal. (get to know more about house loans, here)

Another advantage will be the deduction of the rents paid, in the general value of the purchase of the house. For the landlord, it is also advantageous because an amount of pressure is put on the tenant to make the purchase. This is not a rule, as with other contract parameters. The contract being personal, can be drawn up according to the agreement of the two parties.

A long-term lease is an option for young adults who want to get a house. At this moment, this market segment has a low supply. One of the alternatives you can choose is to apply for a house loan to buy a house. If you find obstacles in this option, you can always look for a rental-purchase contract. This way, you will have time to meet all the conditions to invest in your future house.