Alaska Lease to Own Agreement
The Alaska Lease to Own Agreement gives the renter of a property the option to purchase the rental at the end of the term. For those not wanting to take on the burden of a mortgage but hope to own their own home one day, the agreement can be quite attractive. However, some things should be kept in mind before signing the contract, several of which can be found below.
In comparison to a standard lease, Lease-to-Own agreements bring about a considerable amount of liability and require a more careful decision. Those that are weighing the pros and cons of whether the agreement type is right for them should keep in mind the following points:
- A purchase price is typically arranged before the end of the lease term. Because home prices are rising on average, this can serve as a positive for the tenant, assuming a fair purchase price is set.
- An initial down payment is often expected. If the tenant decides not to purchase the property at the end of the lease, this is typically forfeited.
- Monthly payments are commonly higher than the average lease. However, a portion of the monthly rent typically goes towards the estate price, which ultimately benefits the tenant at the end of the lease.
Overall, lease-to-own agreements can be a favorable alternative to purchasing and can help lower prices for new homeowners.