Published by carratelli4 years ago

What is real estate leasing? It is a specific type of financing that allows you to purchase an asset in exchange for a periodic payment, acquiring ownership at the end of the contract, subject to payment of a predetermined purchase price...

What is real estate leasing?


This is a particular form of financing that allows you to purchase an asset in exchange for a periodic fee, acquiring actual ownership at the end of the contract, upon payment of a pre-established redemption fee.

This type of financing is usually linked to the use of capital goods, such as cars, machinery, or industrial tools. Less frequently, it is used in relation to real estate.

Yet the legislation has recently regulated <strong>real estate leasing, making them an additional tool for those who want to buy a house, but perhaps do not have the financial resources to do so.

 

Who can obtain a real estate lease?

Residential real estate leasing can be undertaken by any individual, regardless of age, income, or ownership of other residential properties. However, the tax benefits provided by the 2016 Stability Law are subject to specific subjective and/or objective requirements: - IRPEF deductions are recognized only for individuals with an income of less than €55,000 and to varying degrees depending on age (over or under 35 years of age); "first home" benefits are recognized only for homes other than those classified in cadastral categories A/1, A/8, and A/9 and only if the lessee meets the subjective requirements to access this type of benefit.

 

How do you buy with a lease?

To be eligible for real estate leasing, there are certain requirements that the individual who undertakes this option must meet.

The property subject to real estate leasing must only comply with the requirements set for the payback period which must be included among the 8 and maximum 15 yearsThis is what is required for business income, while for self-employment income, half the amortization period applies.

  • Regarding the documents required for submitting the application, the main ones are the following:
    -certificate of validity (which certifies that there are no bankruptcy proceedings of any kind underway)
    -tax code and/or VAT number
    -balance sheets or tax returns from recent years
    -any bank guarantees, warranties, bonds, purchase commitments
     


Who should you contact?

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It's very important to know that residential property leasing can only be granted by financial intermediaries and banks. It cannot be granted to natural persons, i.e., private citizens, nor can it be granted to companies or other entities other than banks. However, the leasing user, or potential future buyer, can be a private citizen (i.e., a natural person) or a company (i.e., a legal entity).

It's not designed to allow large entities to purchase real estate at favorable rates and then resell or rent it out, something that's typically allowed under more traditional financing.

 

How to sell a property with a lease?

Upon expiration of the real estate leasing contractThe customer can then decide whether to redeem the asset or return it to the lessor, or ask the lessor to renew the contract with the same or new financial conditions, or alternatively, have a third party take over by assigning the lease. Indeed, the sale of a leased property is essentially the transfer of the lease from one owner to another, where the obvious calculations of the regressed payments and the capitalization of the asset are involved.

Carratelli

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