Are LOA’s Legal? Would They Stand In Court?

In this second-part interview with solicitor, Sam Hawking and property investor Samuel Leeds, the pair discuss the topic of Lease Option Agreements – covering legalities and advice.

Sam Hawking begins by sharing his response to myths on Lease Option Agreements being a ‘thing of the past’…

“My response to that is Lease Option Agreements have been around for a very, very long time.”

Sam Hawking continued to explain how Lease Option Agreements aren’t new, they are popular in commercial property and and won’t disappear any time soon.

“If the property market takes a downturn as a result of brexit, they will become even more important, they are a powerful tool when there is negative equity.”

Samuel later asked Sam what his opinion is when people claim LOA’s ‘won’t stand up in court.’If the seller has legal representation, there is no reason why they shouldn’t stand up in court. The investor has to make sure the vendor is legally represented as this creates security for the investor!

Samuel emphasised the main reasons people don’t believe in Lease Option Agreements,

“They are talking from a position of ignorance rather than a logical standpoint. This is probably because they haven’t got any deals themselves, they can’t find any deals and they are trying to bring everyone’s tower down.”

ANYBODY can build a property portfolio from no money and there is DEFINITELY a place for Lease Option Agreements…

Towards the end of the discussion, Samuel and Sam look at LOA’s from a BUYERS point of view:

– They are perfect for anyone who isn’t in a position to buy a property.
– Great for investors who don’t have a large amount of finance
– They are able to enter into LOA’s with a limited amount of money (only small fees are needed!)
– They enable investors to build up strong relationships and gain capital appreciation on the property without doing anything!

Sound good?

Why not watch the FULL clip above, where Samuel and Sam discuss in more detail legalities AND the benefits of having Lease Option Agreements as a FIRST TIME investor!