The Habishack HS33 is the Big Sister of the three with a Living space of 29.12m2 with large sliding doors at the Entry and in the Bedroom. It is a simple open plan design with 2.44 meter walls and 3.6 meter-high cathedral ceilings giving a smart “Hamptons” feel!
The GREENZ SMART™ Kitchen provides adequate bench space (3600 long) with above bench storage, washing machine and dryer insert and space for a full height pantry and refrigerator/freezer.
This model has an enclosed ground floor bedroom with double built in wardrobe, a central bathroom design and a spacious kitchen/living area. It has also a beautiful gable roof design with cathedral ceilings.
The internal bathroom design creates an en-suite to the bedroom which is accessible from the the kitchen/living space without crossing the private bedroom space. Hot water is heated by a Gas Califont continuous water heating system.
The 1.20meter wide bathroom with shower, vanity and maceration toilet is surprisingly large with plenty of space for shelving options. There is also a 5m2 storage loft above the Bathroom for suitcases, boxes and other items requiring storage.
But, it’s the Living space where this tiny house excels. It makes the most of the large space for dining and living. The “picture window” provides the perfect backdrop for a Day Bed/Couch which pulls-out to a Double Bed at night with 2 storage drawers under.
This Tiny House is truly one to enjoy, a spacious and well appointed “Shack” to be proud of.
EXTERNAL DIMENSIONS
8.646m Length
3.766m Width
3.955m Height
FEATURES
Single level
Gable roof
Cathedral Ceilings
1.22m bathroom and shower
Outside cladding ridges 32.56m2 Over frame 31.26m2 Inside frame 29.12m2
HABISHACK 33
A SUPERIOR ONE DBL BEDROOM CABIN
Built to NZ Building Code, Architecturally Designed, Professionally Engineered, Constructed by a Licensed Building Practitioner.
· Galvanised Subfloor
· Steel Zincalume G550 Frame
Increased side wall height (2.44mtr)
· OSB3 Timber Flooring and Underfloor Insulation
· Double Glazed Aluminium Windows and Sliding Doors
Entry and Bedroom Ranchslider
1x window in bathroom
2x windows in living area
2x window in master bedroom
1x window in Kitchen
· ColourBond Ultra Cladding
· ColourBond Ultra Roof and Flashings
· Insulation to all Walls and Ceiling
Waterproof Thermal Break Wrap
Earthwool Insulation Bats R 2.5 on walls and ceiling
· Walls and Ceiling Lined with OSB3 and Painted
· Custom Bedroom Robe & Storage Cabinetry
· Waterproof Vinyl Plank Flooring to Bathroom
· Carpet & Underlay (Options Available)
· Full Plumbing (Gas + Water)
Califont Instant Hot Water.
· Full Kitchen Cabinetry as per Design
Full Sized Pantry and Refrigerator Space.
Full Sized Quartz Counter Top with Cupboards Over.
Stainless Steel Sink c/w Faucet.
Full size Pantry
Quad Gas Cooktop (Electrical Options)
Splashback
600mm Electric Oven
900mm Range Hood
Waste Master
Dish Washer
Washing Machine & Dryer
Refrigerator / Freezer.
· Bathroom
Fittings.
Top Mount Vanity Sink with Storage Cabinet + Mixer Tap (Options Available)
Shower with Rainfall Shower Head and Mixer (Options Available)
Toilet with Wall Flush, (Composting / Macerator Upgrade Options Available)
· Full Electrical 240v c/w Electrical Compliance Certificate
16 Amp Plug and Lead, (32 Amp Optional).
RCD Safety Switchboard.
Recessed Ceiling LED Lights (8).
Double Power Points (8).
Smoke Alarm
Exterior Lights.
· Includes All Appliances,
Cooktop (Gas or Electric).
Oven c/w Range Hood.
Food Disposer.
Dishwasher.
Washing Machine.
Cloths Dryer
Refrigerator / Freezer.
ASSEMBLE YOURSELF
Þ Or maybe you build one using the strength and integrity of steel.
Þ Your Habishack home is engineered utilising a unique computerised framing system.
Þ BLiSS Habishack homes are strong, durable and require minimal maintenance. Steel provides a non-combustible property that offers great protection against natural hazards such as fire and storms. They are rated for Very High wind zones (55m/s) and to seismic 8.5 conditions.
Þ Steel is termite resistant, so there is no need for chemical treatments.
Þ BLiSS Habishack shells are delivered to the customer in a portable ‘flat-pack’ style, with individually numbered walls, pre-punched dimples to screw in, cable holes for the electricals, tie-down holes and bracing ready to be attached to the foundation.
Þ A comprehensive assembly manual is Included .
Þ BLiSS Habishack homes can be finished with virtually any type of material, i.e. traditional hardiplank, brick veneer, blueboard, high density polystyrene insulation with embedded zinc coated steel mesh and rendered, modern linea board or as in this case Colorbond©.
Þ If one of our standard designs does not suit your needs, let us quote a custom design for you. We are much cheaper than an architect and you can actually build it.
Þ Our Steel Frame Habishack Shells are even easier than building a meccano™ set, as every piece is clearly labeled - all you do is 'Just Screw it Together'!
Þ NB: TSFC Steel Frame Habishack shell’s safety will not be compromised to save a few dollars.
Our quality is second to none. Our value for money is exceptional. Ask our customers.
Inclusions
Þ N3 (55m/sec) Wind Rating
Þ Interior and Exterior Steel Frames as per plan
Þ Steel Trusses as per plan
Þ Roof and Ceiling Battens
Þ Gutters, fascia and barge
Þ OSB3 Rigid Air Barrier and thermal break material for walls 6.5mm
Þ Basic-Grade Quality Timber Door/s as per plan
Þ Standard 98mm reveals for all External Windows and Doors—treated pine
Þ Interior wall lining
Þ Ridge Capping
Þ 90mm Down pipes to Bottom of floor joists with Support Straps and 90 degree elbows
Þ Powder coated double glazed GREENZ SMART™ Aluminium Windows and Doors (standard colour range)
Þ ColorBond© External Wall Cladding
Þ All fixings to assemble
Þ Standard Engineering Plans
Þ Plans, Drafting, BERS Energy Efficiency
Þ Steel Floor System: (including OSB3 flooring (internal))
Þ Colour Colorbond© Roof
Þ Assembly of Floor and Roof panels in factory
Þ Insulation to AS/NZS standards
Þ Plans can be mirrored
Þ Increased interior wall height to 2.44mtr
This text aims to explain the Lease to Own / Option to Buy process, the reasons for Leasing to buy, benefits and possible problems. We provide an example to illustrate the concept but please bear in mind that it’s just one of many possible ways to structure the contract. Lease to Own deals tend to be very flexible to suit the situation of the actual buyer.
Please note: The following explanations are simplified and may not necessarily reflect all the specifics of your particular case. Always consult your lawyer before making the final decision.
Lease to Own vs Rent to Buy
You may have heard both terms. What’s the difference? Nothing at all. Lease to Own and Rent to Buy are just two names for the same process. We will use them interchangeably in this text.
Why Lease to Own?
Some buyers can’t purchase a house directly on the market due to a number of reasons. For example they may not have yet saved enough deposit, they may have some unresolved credit issues, perhaps they are waiting for a residency or for some other reason don’t yet qualify for a mortgage. Our Lease with an Option to Purchase scheme is designed to allow people like this to:
1. Immediately move into their new abode, and
2. Purchase it later for a pre-negotiated price, or
3. Shift it anywhere you want any time you want
The process may take up to a number of years however the specific terms vary . Some Terms and Conditions do apply depending upon circumstances.
Lease to Own process
1. Terms are negotiated. Typically the contract is for 5 years but very often is negotiable both ways. Example: Minimum term is 3 years, maximum term is 5 years. That means the buyer can purchase the house at anytime after the third year and before the end of the 5th year.
2. It is safe to assume that house prices in Auckland will rise on average by 5% per year over the foreseeable future. Most likely even more than that. Example: Current value is $100,000. In three years the market value is expected to be around $116,000, at the end of the 5 years term it should be around $130,000.
3. The future purchase price is fixed at the time the lease is signed and remains fixed.
4. Typically the lease payment is increased every six months to reflect the expected market rental increase in your location. Example: The weekly Lease Fee is fixed for the first 6 months, then increases by say 1.5% every 6 months. The 6 monthly Lease Fee increases are agreed at the time of entering into the lease with an option to purchase contract and remain fixed for the length of the term. At the end of 5th year the purchase price will be still be exactly $100,000 regardless of the market value. Compare that with the above mentioned market price of $130,000 – you can immediately have an increase of $30,000 in equity at the moment of purchase.
5. You – the lessee – pay a small upfront payment and move into the house as a leasee. Usually between 3% and 5% of the agreed purchase price is required upfront. Example: Minimum of $3,000 may be required in our example above.
6. For the duration of the contract the Buyer pays a weekly Lease Fee and becomes a Leasee-Buyer. A portion of the Lease Fee is credited towards the final purchase price. Example: The lease Fee is agreed to be say $605 per week, which includes a weekly reduction of the purchase price (weekly capital growth).
7. Over the years the capital will accumulate to a significant portion of the purchase price. For example in 5 years the weekly capital payments will have grown to the agreed purchase price of $100,000 and you will have nothing extra to pay.
8. Each year your capital will grow so if you wish to exercise the option to purchase at the end of year 3 this capital will be become a portion of the purchase price. Example: Starting at the $605 per week option your capital grows to $45,783.74 in year 3, a growth of capital to $68,966.96 in year 4 and totally paid in year 5.
9. Once the buyer qualifies for a mortgage they buy the house. The accumulated weekly capital plus your equity will be recognised by the bank as a deposit. Example: In 3 years the purchase price will be still be fixed at $100,000, less the $45,783.74 capital accumulated to that date which means the buyer will only need a $54,216.25 loan to purchase the house. That’s only 54.24% of the purchase price – any bank in New Zealand will be happy to finance such a deal. And don’t forget the $30,000 increase in equity.
Compare that with a direct purchase instead of leasing to buy – with a deposit of $3,000 and a purchase price same as the initial value of $100,000 you would be applying for a 97% mortgage. Good luck with that, the LVR is now 20%!
Benefits of Leasing with an Option to Purchase
· Very little money is required to secure a comfortable home.
· Purchase price is pre-negotiated below the future market price.
· You live in your own home before you buy it.
· Elect to purchase in full anytime after three years
· No obligation to purchase if for some reasons your circumstances change. We could buy it back (T’s & C’s apply)
Here is a Table of the Example Above
Frequently asked questions
Am I obliged to purchase the house?
No. We strongly recommend you do buy it because the initial down payment and weekly credits are not refundable. However if your circumstances change you can just walk away. No problem.
Can you sell the house to someone else while we live in?
No we cannot. While the contract is current we can by law only sell the house to you and not to anyone else.
Can I transfer the contract to someone else?
Yes you can with our consent. The contract is fully transferable and you can sell it or give it to anyone who may be able to buy the house if you cannot.
Why is the rent higher than a market rent?
Because it accounts for the weekly credits that ultimately go toward your final purchase price.Treat this as forced savings. You may also pay a small premium for the certainty of a fixed or predictable future purchase price.
Is this actually legal?
Absolutely! We advise you to get independent legal advice and your lawyer should talk you through the contract before you sign it.
Can you let me know when you have the next Lease with an Option to Purchase abode available?
Sure thing.
Lease to own is an alternative home finance platform that combines the flexibility of leasing and the long-term benefits of owning through a Lease-purchase Option.
Apply
Apply and get approved. The process is easy and straightforward.
Choose your home
Find your perfect pad to be a move-in-ready home.
Y Finance
Y Finance will fund your home for you.
Lock-in Purchase Price
With 3% -10% upfront, secure your home & lock-in your purchase price.
Lock-in lease Payment
Lock-in your all-in-one weekly lease payment for up to five-years.
Move in & enjoy
Move in and live like a homeowner. Bring your pets. Decorate or remodel.
Repairs & Maintenance
Do not worry about unexpected repairs and maintenance. That is included.
build equity
Capture 100% of any appreciation and build equity with each lease payment.
Buy your home
Buy your home from Habishack if and when your ready.
Flexible options
Or, if your plans change cash-out your equity. You have options.
Lease-To-Own : Further Explanation
If you’re like most home buyers, you’ll need a mortgage to finance the purchase of a new house. To qualify, you must have a good credit score and cash for a down payment. Without these, the traditional route to home ownership may not be an option.
There is an alternative, however: a Lease-to-Own agreement, in which you Lease a home for a certain amount of time, with the option to buy it before the lease expires. Lease-to-own agreements consist of two parts: a standard lease agreement and an option to buy. Here’s a rundown of what to watch for and how the Lease-to-own process works. It's more complicated than Leasing, and you'll need to take extra precautions to protect your interests. Doing so will help you figure out whether the deal is a good choice if you're looking to buy a home.
Key Takeaways
· A Lease-to-own agreement is a deal in which you commit to Leasing a property for a specific period of time, with the option of buying it before the lease runs out.
· Lease-to-own agreements include a standard lease agreement and also an option to buy the property at a later time.
· Understand that lease-option contracts give you the right to buy the home when the lease expires, while lease-purchase contracts require you to buy it.
· You pay Lease Fee throughout the lease, and in some cases, a percentage of the payment is applied to the purchase price.
· With some Lease-to-own contracts, you may have to maintain the property and pay for repairs.
Lease-To-Own : How The Process Works
Nonrefundable Upfront Fees
In a Lease-to-own agreement, you (as the buyer) pay the seller a one-time, usually nonrefundable, upfront fee called the option fee, option money, or option consideration. This fee is what gives you the option to buy the house by some date in the future. The option fee is often negotiable, as there’s no standard rate. Still, the fee typically ranges between 3% and 7% of the purchase price.
Lease-Option vs. Lease-Purchase
It’s important to note that there are different types of Lease-to-own contracts, with some being more consumer friendly and flexible than others. Lease-option contracts give you the right, but not the obligation, to buy the home when the lease expires. If you decide not to buy the property at the end of the lease, the option simply expires, and you can walk away without any obligation to continue paying the Lease Fee or to buy.
Watch out for lease-purchase contracts. With these, you could be legally obligated to buy the home at the end of the lease, whether you can afford to or not. To have the option to buy without the obligation, it needs to be a lease-option contract. Because legalese can be challenging to decipher, it’s always a good idea to review the contract with a qualified real estate attorney before signing anything, so you know your rights and exactly what you’re getting into.
Agreeing on the Purchase Price
Lease-to-own agreements should specify when and how the home’s purchase price is determined. In some cases, you and the seller will agree on a purchase price when the contract is signed, often at a higher price than the current market value. In other situations, the price is determined when the lease expires, based on the property's then-current market value. Many buyers prefer to “lock in” the purchase price, especially in markets where home prices are trending up.
Applying Lease Fees to the Principal
You’ll pay Lease Fees throughout the lease term. The question is whether a portion of each payment is applied to the eventual purchase price. As an example, if you pay the Lease each month for three years, and a percentage of that is credited toward the purchase price, you’ll be earning a Lease Credit. Typically, the Lease Fee is slightly higher than the going rate for the area to make up for the Lease Credit you receive.
Lease-to-Own Home Maintenance
Depending on the terms of the contract, you may be responsible for maintaining the property and paying for repairs. Usually, this is the landlord's responsibility, so read the fine print of your contract carefully. Because sellers are ultimately responsible for any homeowner association fees, taxes, and insurance (it’s still their house, after all), they typically choose to cover these costs. Either way, you’ll need a Leasee’s insurance policy to cover losses to personal property and provide liability coverage if someone is injured while in the home or if you accidentally injure someone.
Be sure that maintenance and repair requirements are clearly stated in the contract (ask your attorney to explain your responsibilities). Maintaining the property, e.g., mowing the lawn, raking the leaves, and cleaning out the gutters, etc., is very different from replacing a damaged roof or bringing the electric up to code. Whether you’ll be responsible for everything or just mowing the lawn, have the home inspected, order an appraisal, and make sure the property taxes are up to date before signing anything.
Buying the Property
What happens when the contract ends depends partly on which type of agreement you signed. If you have a lease-option contract and want to buy the property, you’ll probably need to obtain a mortgage (or other financing) in order to pay the seller in full.
Conversely, if you decide not to buy the house or are unable to secure financing by the end of the lease term, the option expires and you move out of the home, just as if you were Leasing any other property. You’ll likely forfeit any money paid up to that point, including the option money and any Lease credit earned, but you won’t be under any obligation to continue Leasing or to buy the home.
If you have a lease-purchase contract, you may be legally obligated to buy the property when the lease expires. This can be problematic for many reasons, especially if you aren’t able to secure a mortgage. Lease-option contracts are almost always preferable to lease-purchase contracts because they offer more flexibility and you don’t risk getting sued if you are unwilling or unable to buy the home when the lease expires.
Treat the process the same as you would if you were outright buying a home: do your due diligence, research the area, compare prices with other companies, research the contract, and research the seller's history.
The Ideal Lease-to-Own Candidate
A Lease-to-own agreement can be an excellent option if you’re an aspiring homeowner but aren’t quite ready, financially speaking. These agreements give you the chance to get your finances in order, improve your credit score, and save money for a down payment while “locking in” the home you’d like to own. If the option money and/or a percentage of the Lease goes toward the purchase price, which they often do, you also get to build some equity.
While Lease-to-own agreements have traditionally been geared toward people who can’t qualify for conforming loans, there’s a second group of candidates who have been largely overlooked by the Lease-to-own industry: people who can’t get mortgages in pricey, non-conforming loan markets. “In high-cost urban real estate markets, where jumbo (nonconforming) loans are the standard, there is a large demand for a better solution for financially viable, credit-worthy people who can’t get or don’t want a mortgage yet,” says Paul Savage, founder and CEO of Habishack, an Auckland–based start-up that’s redefining the Lease-to-own market.
“As home prices rise and more and more cities are priced out of conforming loan limits and pushed into jumbo loans, the problem shifts from consumers to the home finance industry,” says Savage. With strict automatic underwriting guidelines and 20% to 40% down-payment requirements, even financially capable people can have trouble obtaining financing in these markets.
“Anything unusual—in income, for example—tosses good income earners into an ‘outlier’ status because underwriters can’t fit them neatly into a box,” says Habishack. This includes people who have nontraditional incomes, are self-employed or contract workers, or have un-established credit (e.g., foreign nationals)—and those who simply lack the huge 20% to 40% down payment banks require for nonconforming loans.
High-cost markets are not the obvious place you'll find Lease-to-own properties, which is what makes Habishack unusual. But all potential Lease-to-own home buyers would benefit from trying to write its consumer-centric features into Lease-to-own contracts: The option fee and a portion of each Lease payment buy down the purchase price dollar-for-dollar, the Lease and purchase price are locked in for up to five years, and participants can build equity and capture market appreciation, even if they decide not to buy. According to Savage, participants can “cash out” at the fair market value: Habishack sells the home and the participant keeps the market appreciation plus any equity they’ve accumulated through Lease “buy-down” payments.
Before You Sign the Contract
Even though you’ll Lease before you buy, it’s a good idea to exercise the same due diligence as if you were buying the home outright. If you are considering a Lease-to-own property, be sure to:
· Choose the right terms. Enter a lease-option agreement rather than a lease-purchase agreement.
· Get help. Hire a qualified real estate attorney to explain the contract and help you understand your rights and obligations. You may want to negotiate some points before signing or avoid the deal if it's not favorable enough to you.
· Research the contract. Make sure you understand:
· The deadlines (what is due when)
· The option fee and Lease payments – and how much of each applies toward the purchase price
· how the purchase price is determined
· how to exercise your option to buy (for example, the seller may require you to provide advance notice in writing of your intent to buy)
· who is responsible for maintenance, homeowner rates, property taxes, and the like.
· Research the home. Order an independent appraisal, obtain a property inspection.
· Research the seller. Check the seller’s credit report to look for signs of financial trouble. Double check. Under which conditions would you lose your option to buy the property? Under some contracts, you lose this right if you are late on just one Lease payment or if you fail to notify the seller in writing of your intent to buy.
The Bottom Line
A Lease-to-own agreement allows would-be home buyers to move into a house right away, with several years to work on improving their credit scores and/or saving for a down payment before trying to get a mortgage. Of course, certain terms and conditions must be met, in accordance with the Lease-to-own agreement. Even if a real estate agent assists with the process, it’s essential to consult a qualified real estate attorney who can clarify the contract and your rights before you sign anything.
When it comes to financing residential real estate, most transactions follow a well-worn process. The seller finds a willing buyer with the required income, employment history and credit score to qualify for a mortgage, and a lending institution puts up the money to finance the deal.
But what if traditional financing is unavailable, and buyer and seller still want to proceed privately with the sale? Enter what’s known as seller financing. As the term implies, the person who’s selling the house finances the purchase, rather than the bank providing a mortgage to the buyer.
Ins And Outs Of Seller-Financed Real Estate Deals
What's Favorable About Seller Financing
This alternative to traditional financing is a useful option at times or in places where mortgages are hard to get. In such tight conditions, seller financing allows buyers access to an alternative form of credit. Sellers, in turn, can tap a population of buyers who don’t necessarily qualify for a traditional mortgage. And because the seller is financing the sale, the property may command a higher sale price.
A bank isn’t directly involved in a seller-financed sale; buyer and seller make the arrangements themselves. They draw up a promissory note setting out the interest rate, schedule of payments from buyer to seller, and the consequences should the buyer default on those obligations. Unlike a sale involving a mortgage, then, there is no transfer of the principal from buyer to seller, but merely an agreement on repaying that sum over time.
With only two main players involved, owner financing can be quicker and cheaper than selling a home in the customary way. When the seller finances the sale "the deal closes faster, as there is no waiting for the bank loan officer, underwriter and legal department to clear the file. Also note that "buyers love [seller financing] because they can get in the home for less money.”
Closing costs are indeed lower for a seller-financed sale. Without a bank participating, the transaction avoids the cost of mortgage or discount points, as well as origination fees and a host of other charges that lenders routinely level during the financing process. There’s also greater flexibility, at least ostensibly, about the loan provisions, from the required down-payment to the interest rate to the term of the agreement.
The seller's financing typically runs only for a fairly short term, such as three to five years, with a balloon payment coming due at the end of that period. The theory —or the hope, at least—is that the buyer will eventually refinance that payment with a traditional lender, armed with improved credit-worthiness and having accumulated some equity in the home.
What Buyers Need to Know
For all the potential pluses to seller financing, transactions that use it come with risks and realities for both parties. Here's what buyers should consider before they finalize a seller-financed deal.
Don't expect better terms than with a mortgage. As the terms of a seller-financed deal are hammered out, flexibility frequently meets reality. The seller digests their financial needs and risks, including the possibility the buyer will default on the loan, with the prospect of a potentially expensive and messy repossession process.
The upshot can be sobering for the buyer. For example, it’s possible you’ll secure a more favorable interest rate than banks are offering, but it's more likely you’ll pay more, perhaps several additional percentage points above the prevailing rate. And you'll probably have to provide a down-payment of a typical, 3% to 10% or more of the property’s value.
You may need to sell yourself to the seller. It's smart to be transparent and straightforward about the reasons you didn’t qualify for a traditional mortgage. Some of that information may emerge anyway when the seller checks your credit history and other background data, including your employment, assets, financial claims, and references.
But make sure, too, that you point out any restrictions on your ability to borrow that may not surface during the seller's due diligence. It should be pointed out that even a potential buyer who has good credit and a hefty down payment on hand may have recently started a new business, and so be unable to qualify for a loan for up to two years.
Confirm the seller is free to finance the sale. Seller financing is simplest when the seller owns the property outright; a mortgage held on the property introduces extra complications. Paying for a title search on the property will confirm that it’s accurately described in the deed, and is free from a mortgage or tax liens.
Most Leasing contracts have a 'due on sale' clause that prohibits the seller from selling the home without paying off the Lease. So if a buyer does try to sell and the financing company finds out, it will consider the property 'sold' and demand immediate payment of the debt in full, which allows the lender to foreclose."
The Bottom Line
As unusual and unfamiliar it is to most people, seller financing can be a helpful option in challenging real-estate markets. However, the arrangement triggers some special risks for buyer and seller, and it's wise to engage professional help to mitigate those and allow the process to run smoothly.
Both parties should hire an attorney or real estate agent to write and review the sales contract and promissory note, along with related tasks. Try to find professionals who are experienced with seller-financed home transactions—and experienced where you live, if possible, since some relevant regulations (such as those that govern balloon payments) do vary by jurisdiction.
Professionals can also help buyer and seller decide on the particular agreement that best suits them and the circumstances of the sale. If it isn’t a seller-financed deal, there are actually dozens of other ways to buy other than a traditional mortgage arrangement. These arrangements, include lease-option, lease-purchase, land contract, contract for deed, equity sharing, and wrap mortgages. Most buyers, and most real estate agents, don't know how any of these work,
Schedule of Lease Fees
Y Finance Lease Fee Rates and Terms
INTEREST RATES
Y Finance provides Lease Contracts with an annual interest rate ranging from 16% to 20% per annum.
The rate that applies to your Lease Contract will be based on a range of factors including your circumstances, credit history with us or others, the security you can provide and the Lease Contract amount.
Once set, our interest rate is fixed for the term of your Lease Contract.
DEFAULT INTEREST RATE
If you get behind in your Lease Contract repayments, then we may charge a default interest rate on any overdue Lease Contract payments, while they are unpaid. The Default rate that we charge is 10% per annum above the Interest Rate that normally applies to your Lease Contract.
Lease Contract TERMS
Lease Contract terms are normally over a five-ten year term.
Fees
CREDIT FEES
ESTABLISHMENT FEE $250
REGISTRATION FEES – The actual charges incurred during the registration of
PPSR Registration (Manual) $100.00 {Financing Statement completed through PPSR Website and credit check (or renewals).}
ADMINISTRATION FEE – A Contribution towards the costs of going maintenance/processing of a Lease Contract
Administration Fee $15.00 {A charge per end of the month which will be included in the installments required to pay the Lease Fee.}
VARIATION FEE- A Contribution towards the costs of assessing and undertaking formal contract variation.
Variation Fee $50.00 {Where an existing Lease Contract’s terms are changed, e.g. security, parties, or repayment requirements of the Lease Contract.}
FULL PREPAYMENT FEE – A Contribution towards the costs associated with full early prepayment of Lease Contracts
Administration Costs Charge $250.00 {Where you repay a Lease Contract in full before the final payment is due.}
A Charge as Calculated under the Credit Contracts and Consumer Finance Regulations 2004 in Compensation for any loss we may incur due to early repayment and calculated under the formula prescribed in regulations.
DEFAULT FEES:
Default fee $10.00 {Charged each week that Lease Contract is in default}
Arrears Letter $15.002 {Where your Lease Contract is overdue through missed payment(s)}
Unpaid Item letter $15.002 {Letter issued advising that a payment made by you has been reversed by your bank.}
Default notification $10.002 {Phone/text /Facebook message or email advising of missed payment}
Centrix lodgement $25.00 {Notifying Centrix of your account default}
AGENT CALLS – A Contribution towards the costs associated with a physical visit by our Agent due to default
Field Visit – Unit2go $65.00 plus $1.75per km return to base {Where we have an employee visit you regarding a default payment.}
Field Visit – Third Party Agent As Invoiced to us, plus 10% admin fee {Where we have a contracted third party agent to visit you regarding a default payment.}
REPOSSESSION/SURRENDER OF UNIT CHARGES – A Contribution towards the costs associated with repossession action
Pre-possession Warning Notice $65.002 {Statutory Notice formally advising of our intention to repossess.}
Repossession Authority letter $60 {Where we issue an authority to repossess.}
Post Repossession Notice $65.002 {Statutory Notice confirming the repossession.}
Storage Repossessed Goods $65.00 per day {Where repossessed goods are stored at a Habishack’s storage location.}
Uplift Fee $3500 set up fee, plus $2.50 per KM return to base {When unit is uplifted, crane/hiab fees are extra on top of these charges}
Cleaning Fee $450 {Where unit is deemed to have been returned in an unclean state}
Meth test $450 {Will be carried out if quick test swab is positive}
Meth decontamination max (depends on size of unit)$5000 {Cost incurred as the result of a positive Meth test}
Repairs/painting/carpet/vinyl (as deemed necessary, to bring unit up to a sale-able state) As invoiced from third party plus our administrationfee of 10%
RECOVERY- A Contribution towards the costs associated with other collection or enforement actions.
Collection Agents Commission As Invoiced to us {Where a third party debt collection company has been passed the Lease Contract to pursue repayment.}
Property Law Act Notice $45.00 {Statutory Notice issued under the Property Law Act requiring payment or other default to be remedied.}
Other Charges As Invoiced to us {Any other services contracted out to third parties to facilitate collection/repayment of a Lease Contract.}
NOTES:
1. These charges vary dependent upon the third party. The fees displayed are the current fee levied by our primary third-party conveyancer.
2. Where a notice is sent to more than one person (eg if there is more than one borrower and/or guarantor) only one fee is charged, not one fee per person.
*These are the maximum level of fees charged, in some cases fees may be charged at a lower level.
Current as at 1 January 2021
LEASE TO PURCHASE OPTION AGREEMENT
This Lease to Purchase Option Agreement (“Option to Purchase Agreement”) is made on __________________________ [month, day, year] between ___________________________________________________________ (the “Seller”) and ___________________________________________________________ (the “Buyer”).
WHEREAS, Seller is the fee owner of certain real property being, ___________________________________________________________________________________ (the “Property”).
WHEREAS, Seller and Buyer have together executed a prior lease agreement, the subject of which is the aforementioned Property (the “Lease Agreement”).
NOW, THEREFORE, for and in consideration of the covenants and obligations contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller hereby grants to Buyer an exclusive option to purchase the aforementioned “Property.” The parties hereto hereby agree as follows:
1. OPTION TERM. The option to purchase period commences on __________________________ [month, day, year] and expires at 11:59 PM __________________________ [month, day, year].
2. NOTICE REQUIRED TO EXERCISE OPTION. To exercise the Option to Purchase, the Buyer must deliver to the Seller written notice of Buyer’s intent to purchase. In addition, the written notice must specify a valid closing date. The closing date must occur before the original expiration date of the Lease Agreement, or the date of the expiration of the Option to Purchase Agreement designated in paragraph 1, whichever occurs later.
3. OPTION CONSIDERATION. As consideration for this Option to Purchase Agreement, the Buyer shall pay the Seller a non-refundable fee of $__________________, receipt of which is hereby acknowledged by the Seller. This amount shall be credited to the purchase price at closing if the Buyer timely exercises the option to purchase, provided that the Buyer: (a) is not in default of the Lease Agreement, and (b) closes the conveyance of the Property. The Seller shall not refund the fee if the Buyer defaults in the Lease Agreement, fails to close the conveyance, or otherwise does not exercise the option to purchase.
4. PURCHASE PRICE. The total purchase price for the Property is $__________________. Provided that the Buyer timely executes the option to purchase, is not in default of the Lease Agreement, and closes the conveyance of the Property, the Seller shall credit towards the purchase price at closing the sum a percentage of the Lease Fee from each weekly lease payment that the Buyer timely made. However, the Buyer shall receive no credit at closing for any weekly lease payment that the Seller received after the due date specified in the Lease Agreement.
5. EXCLUSIVITY OF OPTION. This Option to Purchase Agreement is exclusive and non-assignable and exists solely for the benefit of the named parties above. Should Buyer attempt to assign, convey, delegate, or transfer this option to purchase without the Seller’s express written permission, any such attempt shall be deemed null and void.
6. CLOSING AND SETTLEMENT. Seller shall determine the legal practice at which settlement shall occur and shall inform Buyer of this location in writing. Buyer agrees that closing costs in their entirety, including any points, fees, and other charges required by the third-party lender, shall be the sole responsibility of Buyer. The only expense related to closing costs apportioned to Seller shall be the pro-rated share of the ad valorem taxes due at the time of closing, for which Seller is solely responsible.
7. FINANCING AVAILABILITY. SELLER MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE AVAILABILITY OF FINANCING REGARDING THIS OPTION TO PURCHASE. BUYER IS SOLELY RESPONSIBLE FOR OBTAINING FINANCING IN ORDER TO EXERCISE THIS OPTION.
8. FINANCING DISCLAIMER. The parties acknowledge that it is impossible to predict the availability of obtaining financing towards the purchase of this Property. Obtaining financing shall not be held as a condition of performance of this Option to Purchase Agreement. The parties further agree that this Option to Purchase Agreement is not entered into in reliance upon any representation or warranty made by either party.
9. REMEDIES UPON DEFAULT. If Buyer defaults under this Option to Purchase Agreement or the Lease Agreement, then in addition to any other remedies available to Seller at law or in equity, Seller may terminate this Option to Purchase by giving written notice of the termination. If terminated, the Buyer shall lose entitlement to any refund of rent or option consideration. For this Option to Purchase Agreement to be enforceable and effective, the Buyer must comply with all terms and conditions of the Lease Agreement.
10. COMMISSION. No real estate commissions or any other commissions shall be paid in connection with this transaction.
11. RECORDING OF AGREEMENT. Buyer shall not record this Option to Purchase Agreement on the Public Records of any public office without the express and written consent of Seller.
12. ACKNOWLEDGMENTS. The parties are executing this Option to Purchase Agreement voluntarily and without any duress or undue influence. The parties have carefully read this Option to Purchase Agreement and have asked any questions needed to understand its terms, consequences, and binding effect and fully understand them and have been given an executed copy. The parties have sought the advice of an attorney of their respective choice if so desired prior to signing this Option to Purchase Agreement.
13. TIMING. Time is of the essence in this Option to Purchase Agreement.
14. GOVERNING LAW AND VENUE. This Option to Purchase Agreement shall be governed, construed and interpreted by, through and under the Laws of New Zealand. The parties further agree that the venue for any and all disputes related to this Option to Purchase shall be at Auckland New Zealand.
15. OPTION TO PURCHASE CONTROLLING. In the event a conflict arises between the terms and conditions of the Lease Agreement and the Option to Purchase Agreement, the Option to Purchase Agreement shall control.
16. ENTIRE AGREEMENT; MODIFICATION. This document sets forth the entire agreement and understanding between the parties relating to the subject matter herein and supersedes all prior discussions between the parties. No modification of or amendment to this Option to Purchase Agreement, nor any waiver of any rights under this Option to Purchase Agreement, will be effective unless in writing signed by the party to be charged.
SELLER:
Sign: ___________________________________ Print: __________________________________
SELLER:
Sign: ___________________________________ Print: __________________________________
BUYER:
Sign: ___________________________________ Print: __________________________________
BUYER:
Sign: ___________________________________ Print: __________________________________