What Are the Options at the End of a Lease Purchase Agreement

At the end of a lease purchase agreement, there are typically three options available to the lessee. These options include renewing the lease, buying the property outright, or simply walking away from the agreement. Each of these options has its own merits, and the right choice will depend on the individual circumstances of the lessee.

Renewing the Lease

One option available at the end of a lease purchase agreement is to renew the lease. This is a popular choice for lessees who are happy with the property and wish to continue living there. Renewing the lease means that the lessee will continue to pay rent to the landlord, but with the added benefit of knowing that they have the option to purchase the property at the end of the new lease term.

Buying the Property Outright

Another option at the end of a lease purchase agreement is to buy the property outright. This option is best for lessees who have decided that they want to own the property and have the financial means to do so. Buying the property outright often requires a significant down payment, but it also means that the lessee will become the owner of the property and will no longer have to worry about paying rent or renewing the lease.

Walking Away

Finally, the third option at the end of a lease purchase agreement is to simply walk away from the agreement. This option is typically only used when the lessee is unhappy with the property or has decided that they no longer want to live there. Walking away means that the lessee will not renew the lease and will no longer have the option to purchase the property.

In conclusion, at the end of a lease purchase agreement, there are three main options available to the lessee: renewing the lease, buying the property outright, or walking away from the agreement. Each of these options has its own benefits and downsides, and the right choice will depend on the individual circumstances of the lessee. Regardless of the option chosen, it is important to carefully consider all of the options and to make an informed decision that is in the best interest of the lessee.