We’re retiring in three years and are considering selling our house at the top of the market and renting a long-term lease. This would give us flexibility for relocation, but we’re worried about being forced to move if the rental owner decides to sell before our lease ends. Here are our questions:
How solid are long-term (3-year) leases? Do they prevent the owner from selling while we’re living there?
What type of lease-option can we use to secure the opportunity to buy the house at the end of the lease if we can’t find a new home?
What options do we have to avoid ending up homeless or being forced to relocate before we’re ready?
I plan to hire a real estate lawyer to review everything before signing. I hope I’m explaining this correctly. All opinions appreciated!
Long-term leases do provide some security, but they don’t prevent the owner from selling. If they sell, the new owner typically has to honor your lease, but it can be a hassle if they want to move in themselves.
Consider negotiating a lease with a right of first refusal. This gives you the option to buy the property before it’s offered to others, which can be a good safety net.
You can also look into a lease-option agreement, which gives you the right to purchase the home at a specified price after the lease term. There are variations, so it’s good to discuss this with a lawyer.
Make sure to include clauses in your lease that outline your rights in case of a sale, and consider an extended notice period if the owner decides to sell.
Definitely consult a real estate lawyer to help you draft or review your lease and any lease-option agreements. They can help ensure your interests are protected.