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From wealth dragons car at UK and I've been receiving a lot of questions from people just to say how the lease options actually work, and you know a lot of your problem in getting a lot of emails about lease options and what our options, so I'm just going to really quickly describe to you what you would use a lease option for and how it actually works so let's just say we've got this house here okay the purpose of you getting into property right now I assume is to either become financially free you want to make sure money you want to build a pension you want to buy a better car bigger house you want to quit your job replace your salary again and the whole point is to buy a house and rent it out and make a profit so let me give you an example and lets you say you want to buy this house here normally you'd have to buy like this you would need a mortgage and once you've got a mortgage well first you have to be able to get a mortgage so for those of you who are listening who want to invest in property and to me, you know to rent it out make some cash flow you may not be able to do that because you can't get a mortgage maybe you have bad credit ratings maybe you have missed payments maybe you've tried to apply for a mortgage but can't get a mortgage I know a lot of people that come to us can't actually get a mortgage, so they stopped investing when you shouldn't let that get in the way second thing that stops you from buying a house is a deposit which means if this house is you're going to buy this house, and it's a hundred thousand pounds then you know first you have to be able to get a mortgage, so the mortgage company would lend you seventy-five thousand, and you would be expected to deliver a deposit of twenty-five thousand currently in the current climate, so obviously that will change depending on if banks delight decide to lend you more or not but as it stands the bank will only lend you most banks will lend you seventy-five percent of what the house is worth in this case it's seventy-five thousand which means you need twenty-five thousand pounds 75 plus 25 equals one hundred to buy this property now mortgage payments on a seventy-five thousand pounds on average say at five percent would cost you three hundred and twelve pounds per month now obviously you would have to rent a property more than that to try and get profit so in Milton Keynes at the moment average property say three bed mid-Terrace we'll go 550 to 600 pounds so if you look at this, and I'm going to mortgage just 75 I got a deposit of 25,000, so I've either got to have I need both of these to buy this in order to rent it out and so if you did that you'd make a cash flow of 288 pounds now here's the problem and here's where lease options come in now think about this for a while you need to think about how much money you need to replace your salary so if you look at an average salary of 3,000 pounds a month and if you're basing that of 288 pounds month let me grab a calculator...
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