End of Lease Options
The Best of Renting and Buying!
At lease end, you have 3 options + 1
(1) Buy the home for its Residual Value. The residual value you will buy
the home for is usually comparable to the amount you might still owe on a
loan if you had purchased the home 5 years ago with a similar down
payment. However, your new financed payment will lower than it would
have been had you purchased the home 5 years ago.
(2) Return possession of the home and move on.
(3) Re-Lease the home. Re-leasing will generally bring
you a lower lease payment for the next lease term. In conjunction with a
purchase, you may sell the home. This may be a good option if you believe
that you have a sizeable amount of equity in the home that you can turn
into cash.
During the last 6 months of your lease, your Leasing Agent will likely
contact you to get an idea of what your intentions may be at the end of your
lease. You may not know, yet, but you need to become informed on the
procedures necessary for whatever option you may be considering. If you
are intending to return possession of the home, this would allow your
Leasing Agent to put the home on a list of homes that will be available in
the months to come. This assures the lender that there are always
payments coming in.
(4) Re-Lease a new home if homes are available. Yes, you could lease a new
home or a different home every 3-5 years as long as lots are available for a
new home.
Special Purchase Bonus!
If you purchase your home at lease end, you may qualify to receive a
portion of the money collected under the Customer Protection Plan as a
credit to your Residual Value, thus reducing your guaranteed purchase
price.
Special Move-Out Bonus!
If you elect to return possession of the home to your Leasing Agent, you
may qualify to receive up to $400 from your Customer Protection Plan IF
you return the home so clean and in such good repair that no further
cleanup or repair is needed. Regularly cleaning your home and staying
current with maintenance during the time you live in the home will help you
earn the Move-Out Bonus.
Smart HomeLeaseTM
A New Day for Manufactured Home Finance
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