Lease Option Calculator
Lock in a purchase price today, sublet in the meantime, decide later whether to buy
Northern Ireland uses the same Stamp Duty as England.
Needs the owner's mortgage lender and insurer to consent to you subletting.
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Based on cash flow, ROI on the option fee, and payback period
Rent collected minus payment to seller minus running costs
Assumes the property reaches £231,855 by year 5 (at 3%/yr) against your locked-in £200,000 price. SDLT shown (£11,500) is a reference estimate at TODAY's rates: the real rate will be whatever applies when you actually exercise.
Whether SDLT is due now (at the option stage) or only at exercise depends on HMRC's "substantial performance" test: broadly, if your monthly payment to the seller looks like genuine rent, tax is deferred to exercise; if it looks like disguised purchase instalments, HMRC can treat it as an earlier taxable event. This is a real, case-by-case legal question: get a solicitor experienced in lease options to structure the agreement, don't rely on this calculator to settle it.