Rent to Own Schemes in Nigeria
A Mortgage Alternative Worth ConsideringFor many Nigerians who cannot immediately qualify for a traditional mortgage, rent to own (also called lease to own) arrangements are gaining quiet popularity yet very few people fully understand how they work or how to protect themselves in such deals.
In a rent to own agreement, a tenant pays rent monthly with a portion of that payment going toward eventual ownership of the property. After an agreed period typically 5 to 15 years the tenant either completes a final payment or converts to a formal mortgage to own the property outright. Some developers like Revolution Plus and Mixta Africa have offered variations of this model in Nigeria.
Why it appeals to Nigerians: It removes the pressure of a large upfront down payment, allows families to move in immediately, and gives time to build creditworthiness before formal mortgage qualification.
The risks you must know:
- If you default midway, you may lose all rent contributions already made.
- Contracts are often heavily skewed in the developer’s favor.
- Property prices may be inflated beyond market value to account for the deferred payment risk.
- Title transfer is not guaranteed until full payment you are legally a tenant until then.
Always have a qualified lawyer review any rent to own contract before signing, confirm that the developer holds a clean title, and insist on a clause that protects your accumulated equity if disputes arise.
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