L/O Needed in Adelaide

[ozywebmaster]

Hello,

I am currently in a Lease Option purchasing our first home.
However my grandparents have decided they now need to go into a retirement village and want to sell their home to pay for the new flat.

I have always wanted to buy their home (its been in the family for 25years), but was hoping it would not be for some years yet when they passes away.
Knowing how much I love the home they have offered it to me first for $220,000.
I expect the home will bank value at approx $300,000 but will not pay to have this done unless I can source some finance.

The house is very snazzy and upmarket.
Houses of basic design and landscape in her area are $250,000+
She has very well landscaped front lawn, enclosed carport, FULL inground concrete swimming pool I think it was 50,000 litres VERY big, very very nice landscaped back yard, with over 6000 pavers in a split level design.
Every single room has large double sliding doors, with shutters to most.
The lounge has double sliding to the back, and a very large bay window to the front with a UMR pargola extending about 2mtr.
Perfect in structure and well maintained, relatively modern kitchen however they for some reason decided to keep the same oven for 25years.

Although I am in a Lease Option now I am keen to enter another if it means I can keep the family home, as they need to move into their village home ASAP as the size of the existing home and pool is far to dangerous for them.

I would like to ideally rent out my existing home and live in the family home, however i would be willing to walk away from this deal and loose all inc. deposit if it means I can keep the home.

The downside is I would have access to a very little deposit since I put it into this home.
But would be willing to pay a deposit off over say 6x mths.
I have a fulltime secure job, gross $2100 p/ft.
And can show lease option payment history here of $275 p/wk, although I know the new deal would be more due to the price.

If you are willing to consider a deal, please contact me on 08-8283-4346 or email [email protected]

Thanks,
Benjamin

 

[stickysandwich]

What is it you are actually asking for Benjamin?

SS

 

[michaelg]

Hi,

There are two issues here that I can see:

1) What to do with your existing lease-option

2) How to secure your grandparents home

Here are some thoughts....

Re: Lease Option

You could;

a) If your lease allows... sublet the place and either;

i) sell the place to the new tenants which your option is due..

ii) do a back to back lease option to your new tenants and make the deal cashflow positive (ie their payments are greater than yours) and make sure their option expires at the same time as yours (and make sure their option fee covers your fee). Since you signed a lease-option contract and you should have a copy - it should be possible to take it to a solicitor and have it drafted up. You could even use the solicitor your vendor used since they are experienced with such matters.

b) rent the place out, see what happens at the end of the lease and try to sell it (with the hope the market has moved up) and sell at a profit.

Re: Grandparents house

You could;

a) If they do not need a large sum to secure the rights to the retirement village, you could ask them to wrap the house to you, with this method you would pay them in installments, until you can refinance and pay the balance later.

b) Ask them to provide 20% vendor finance to cover you deposit which you will pay back weekly/monthly as an income to them and then get an 80% LVR loan to cover the rest, once the place has gone up in value you can refinance and pay out the vendor loan.

Just some thoughts...
MichaelG