An instalment option is very different to a property lease option. With a lease option you can decide at the end of the term what you want to do with the property, but with an Instalment Contract you need to complete the sale. Don’t enter into

1. Creative Property Strategies
By Reena Malra, The UK’s Leading
Authority on Creative Property Strategies
including Property Lease Options,
Instalment Contracts and Short Stops....
What Is An Instalment Contract?
An instalment contract is also referred to
as a delayed completion or a long stop.
It’s important that if you hear these
buzzwords, you know that they all
basically mean the same thing.
An instalment contract means that you
can purchase a property without having to
go through the traditional route of finding
a hefty deposit in order for you to either
invest in a buy to let property or buy a
home for you and your family.
An instalment contract is an agreement
with the buyer or seller of a property,
whereby you agree to buy the property at
a pre agreed point in the future. This
could be a year, five years even twenty
years. In the meantime you can exchange
on a property, but you just delay the
completion for some time.
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0203 397 7030

2. What Is An Instalment Contract? Cont......
It’s not a decision you should make without serious thought,
especially given the economic climate of recent years.
With an instalment contract you need to remember that if you
don’t complete when it comes to the agreed point in time, the
seller will have exactly the same rights as someone having
exchanged and not completing contracts with a traditional sale
timeframe.
So it’s not something you can easily back out of or change your
mind on.
An instalment option is very different to a property lease option.
With a lease option you can decide at the end of the term what
you want to do with the property, but with an Instalment Contract
you need to complete the sale.
Don’t enter into this type of agreement without the appropriate
expert advice.
There are several reasons that people opt for an instalment
contract. The most common reason is that the property is in
negative equity, and the instalment option allows the seller and
buyer enough time for the property to switch to neutral equity,
then afterwards positive equity making it a much better deal.
Alternatively a property could be pending planning permission, or
awaiting a decision on a submission to make the property a HMO.
An instalment contract means that you can do what you want with
the property yet without missing out on selling or buying the
property subject to these terms.
The great thing about an instalment contract is that it allows you
to buy a property with no money down.
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3. What Is An Instalment Contract? Cont......
However, it’s worth remembering that you will be responsible for
the stamp duty on the property. HMRC will still want their share,
and it’s up to you as the buyer to ensure that this is paid within 30
days of exchange.
Therefore you must allow for this cost. But remember, it’s still a
great deal. You don’t need to find a deposit and the value of the
property in between exchange and completion is likely to rise.
The stamp duty is usually a small price to pay for being able to buy
a property without a deposit or good credit rating.
If you want to look further at delayed completions, long stops, or
instalment contracts and see how you can fit any of these into your
property investment strategy contact Reena via email
at reena@reenamalra.com
Property lease option expert Reena Malra
specialises in helping people get into property via
non traditional methods such as property lease
option, instalment options and various other
strategies that work for both the seller and buyer.
She has mentored hundreds of property inves-
tors, empowering investors to structure profitable
property portfolios. She offers a range of creative
deals that you may not even be aware of.
If you would like to discuss property lease
options as an investment strategy, give Reena a
call on 0203 397 7030 or visit Reena’s Blog site at
www.PropertyLeaseOptionsAdvice.co.uk