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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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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.

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

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 investors, 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

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...