BARON HOLDINGS REAL ESTATE LEASE WITH THE RIGHT TO PURCHASE PROGRAM:
The mission of the real estate professionals at Baron Holdings Real Estate is to help you successfully get approved for our Lease with the Right to Purchase program, and get you moved into a new home. Please review the minimum qualifying criteria for our Lease with the Right to Purchase program.
QUALIFYING CRITERIA FOR PRE-APPROVAL:
- Household Income of $50,000 or greater
- Minimum Credit Score of 575
- Stable Employment History of 6 Months or Greater
- Job Offer Letter if Relocating
- No Felony Convictions
- No Collections in the Past 6 Months
- Bankruptcies Must Be Discharged (Chapter #7) or on Payment Plan (Chapter #13)
- Must Be Able to Allow for 8 Weeks to Complete Process
- Up to 3 Pets Are Allowed. Breed Restrictions Apply. No Farm Animals
WHO WE HELP:
- Those with Good Income but May Have Made A Past Credit Misstep
- Recent College Graduates
- Relocation to Florida From Out of State
- Individuals Saving for a Down Payment
- Those Unsure if They Should Rent or Own
- Anyone Wanting to Live in a Great Florida Neighborhood Without the Long-Term Commitment
Orlando Metro Counties:
Tampa Metro Counties:
There are some key points that you need to understand that relate to our Lease with the Right to Purchase program.
THE RENT & SECURITY DEPOSIT
- A Down Payment is Not Required
- A Security Deposit of Two Months Plus First Month’s Rent is Required
- A Verification of Funds Will Occur Prior to Moving In
The professionals at Baron Holdings Real Estate will use the MLS to help you find the perfect home. The home that you choose must meet certain standards in order to be purchased by our partners. Once you have been approved, then your agent will create a list of available homes that meet the necessary criteria. Below is the list of criteria:
- Rents will range from $1,400-$4,500 per month
- Qualifying Homes are Single Family Homes or Town Homes
- The Home Must Have a Minimum of 2 Bedrooms and 1 Bath
- Traditional Sales Only (Short Sales or Bank Owned Properties are Excluded)
- All Homes Must Be Located Within a Highly Ranked High School District
- No Home May Be Located Within a Flood Zone, Near Sinkholes, or In Close Proximity to Highways or Airports
- Maximum Purchase of Home is $400, 000
The lease is for 12 months, and it will automatically renew every year for up to a five-year limit as long as you are compliant with the lease and its respective agreements. Before the end of the lease you will have the opportunity to provide notice, and not renew for the upcoming year. You are not obligated to renew your lease after the initial 12-month term. If you do decide to not renew for any reason, your full security deposit will be returned as long as you are in compliance with the lease.
THE LEASE WITH THE RIGHT TO PURCHASE AGREEMENT
The Lease with the Right to Purchase Agreement is what gives you the ability to purchase the home you have chosen to live in at a pre-determined price for each year the lease as long as you are in compliance with the terms and agreements of your lease. You nor anyone else is obligated to purchase the home. As long as you are compliant with your lease, then your agreement is in effect as long as you continue to lease. Before being asked to sign anything, you will first be provided with a chance to read and inspect all paperwork and documentation. Baron Holdings Real Estate encourages all of its clients to thoroughly read all documents and consult with legal counsel prior to signing.
The goal of our Lease with the Right to Purchase program is to get you into the home you have always wanted and purchase it when the time is right. However, you should know that the 2019 forecast for both the Orlando and Tampa Metro Real Estate Markets is predicted to remain strong.
ANNUAL INCREASE TO THE LEASE WITH THE RIGHT TO PURCHASE
For each year that you lease your home, you will have the opportunity to purchase it at any time once you become financially ready. Each year that you opt to lease, there will be a predetermined increase to the purchase price of the home. The percentage increase is usually below the average increase that the Orlando & Tampa real estate experience, increasing no more than 5%. For example, the home you want to purchase costs $200,0000. The example below reflects the maximum increase and shows what the cost to purchase would be over the course of five years.
Year 1 $210,000
Year 2 $220,500
Year 3 $231, 525
Year 4 $243,101
Year 5 $255, 256
There will be additional costs that you will incur when you move to purchase your home. These costs are the normal costs associated with purchasing a home, and include but are not limited to closing costs, transfer taxes, title insurance, attorneys’ fees insurance, etc. Thus, the actual total costs to purchase will vary.
YEARLY INCREASE TO RENT
In case you are not ready to purchase your home, and elect to continue renting, your rent is capped and will increase by no more than 3.75% annually. For example, if your rent is $1,400 per month then you can see how much your rent will increase over the five-year period.
Year 1 $1,400
Year 2 $1,450
Year 3 $1,500
Year 4 $1560
Year 5 $1,620
THE TOTAL COST BASIS
The total cost basis is what our partners pay for the home that you choose. These costs include but are not limited to closing costs, any initial repairs, and any needed renovations. Please review the example below.
Cost of Home $200,000
Closing Costs* $2,000
Renovations $10, 000
Initial Repairs $2,000
Total Costs Basis $214,000
*These costs include fees such as attorney’s fees, title insurance, and transfer taxes.