Yes the tennant is existing. We think we have now covered all the bases in that rent will include council rates. It will be a new lease agreement with a certificate from tenants & their legal advice stating they have legal advice abount this matter. The Option will include mtce exps being a condition of the option. The rent will increase in line with increases in council rates.

The end purchase price has been worked out. I worked out a figure that I would sell the prop for taking into account the current market & the cash I need from the place. If the market has a growth spurt beyond the proposed sale price then good luck to them – I’ll be happy & they’ll be happy !!

Cheers

wazwaz71 [smiling]

Thanks Terryw,

Another question, how about if the maintenance costs are a condition of the contract of sale ?

So at this stage the deal would be structered as follows:-
– 10% rent increase
– option to include X amount as deposit & Y amount per week to cover the increase in rent that can’t be covered under a lease arrangement due to limits in the Resiential Tenancies Act
– Contract of sale to include sale price and usual sale items, but to also include a condition regarding maintenance costs & council rates payable by purchaser.

I don’t know how legally binding it is linking the contract of sale and Option i.e. if defaulting on maintenance costs then can it void the option.

Anyone else structure an Option like this ? any advice ?

Cheers

wazwaz71 [blush2]