How Ruth Hunter Negotiated a £500K Property Deal Down to £330K

Table of Contents

• From Losing Her Home to a Property Portfolio
• The £450,000 Property Nobody Wanted
• Why the Seller First Said No
• The Coaching Call That Changed Her Mind
• Securing a Five-Year Supported Living Lease
• The Phone Call That Changed Everything
• A £500,000 Valuation on a £330,000 Purchase
• What You Can Learn From Ruth's Deal
• Could Purchase Lease Options Help You in 2027?
• Frequently Asked Questions

What would you do if you had agreed to buy a property for £500,000, then the seller contacted you 18 months later asking you to complete early? Most investors would start working out how to raise the money. Ruth Hunter saw a chance to renegotiate. The result was remarkable. She reduced the agreed price from £500,000 to £330,000, a £170,000 reduction.

Even better, she had originally secured the property through a purchase lease option, using money from an investor rather than her own savings. When I interviewed Ruth during Lease Options Live, she explained how the deal came together, why she nearly walked away, and what happened when the seller's circumstances changed. It is a great example of why creative strategies can give investors opportunities they might otherwise miss.

From Losing Her Home to a Property Portfolio

Ruth is based in Cheltenham, in the Cotswolds, and previously ran a wedding and event design business. When the pandemic arrived in 2020, her business was hit hard. Her husband was also made redundant from his job in hospitality. With their income disrupted, they made the difficult decision to sell their family home.

Ruth knew they had to use the money carefully. She had already started learning about purchase lease options after finding one of my videos on YouTube in late 2019. She then attended property investors network meetings and won access to our Creative Finance home-study training. Armed with that knowledge, she began looking for opportunities.

In 2021, Ruth acquired three HMO properties within six months, with a combined projected gross development value of around £1.1 million. She used a mix of funding strategies, including vendor finance and joint ventures. She later applied for our Property Mastermind scholarship and was selected as the winner. The reason was simple: she was taking action. She attended training, asked questions, shared her progress and connected with other investors. This was not just collecting information. She was putting it into practice.

Today, Ruth is a Property Mastermind graduate, takes part in our Next Level programme and helps host the Gloucester pin meeting. This deal shows just how valuable that willingness to learn and act can be.

Key takeaway: Ruth started from a hard place and learned by doing. Taking action, not just gathering information, is what opened doors for her.

The £450,000 Property Nobody Wanted

Ruth was searching for HMO opportunities when she noticed a property that had been on the market for almost a year. It was advertised at £450,000. The building had previously operated as an HMO, but its layout did not suit a conventional family home. It was not ideal for the kind of HMO she wanted to run either.

When she viewed it, she asked the estate agent questions. Who was selling, and why? What was their situation? She learned that the owner lived overseas and had inherited the property from his father. The building had previously been used for supported living, but it now sat empty. The owner had struggled to sell and was thinking about putting it back on the rental market.

For Ruth, that was the key clue. A purchase lease option might give the seller an alternative. Rather than waiting for a conventional buyer, he could receive an income while agreeing to sell at a future date. So Ruth made her proposal.

Key takeaway: Ruth did not stop at the asking price. By asking why the owner was selling, she uncovered a problem a purchase lease option could solve.

Why the Seller First Said No

Ruth's first offer was based on what she thought the landlord had been earning. She estimated that, after a mortgage and other costs, he might have received around £1,000 a month. So that is what she offered. But she had made a wrong assumption. The property had no mortgage. And because it had been leased to a supported living provider, the owner had been receiving around £2,300 a month, without the usual management hassle.

Understandably, he was not keen to drop that income to £1,000. However, he did not reject the idea of a purchase lease option. He was willing to negotiate. He wanted to keep receiving £2,300 a month. On top of that, he wanted a future purchase price of £500,000, reflecting the growth he expected over three years. That was £50,000 more than the asking price.

Ruth was not convinced. At first, she thought the numbers simply did not work. But one detail changed things. The monthly payments would be deducted from the eventual purchase price.

Key takeaway: Ruth's first offer was based on a guess, and it was wrong. Getting the seller's real numbers is what moved the conversation forward.

The Coaching Call That Changed Her Mind

Ruth took the proposed deal to a coaching session with property coach Paul Collier. She explained why she was worried about agreeing to pay £500,000 for a property advertised at £450,000. Paul helped her look at the numbers differently. Instead of treating the monthly payments purely as a cost, they considered how those payments would reduce the amount due on completion.

Over the three-year period, Ruth worked out that the payments could total around £90,000. Crucially, the plan was for that money to come from the property's rental income, not from her own pocket. With that structure in mind, the deal looked very different. Ruth later admitted that, without that coaching call, she probably would not have gone ahead.

That is an important lesson. Sometimes a deal genuinely does not work. But sometimes it only looks that way because you are viewing it from one angle. An experienced person who challenges your assumptions can help you spot possibilities you would otherwise miss. That does not mean you force the numbers. Every agreement needs careful financial and legal assessment. In Ruth's case, the coaching helped her understand a structure she had first discounted.

The Option Fee and the Investor Who Found Her

There was another condition. The seller wanted a £15,000 option fee, as protection in case Ruth did not proceed. Ruth also needed money to refurbish. Rather than using her own savings, she raised £63,000 from an investor, which covered both the option fee and the refurbishment. Interestingly, that investor had found Ruth after she received a highly commended award for her work in social housing investment. They wanted to back someone involved in property with a social impact. It is another reason to share what you are doing, because you never know who is following your progress. Ruth also negotiated a three-month rent-free period at the start, which gave her time to refurbish and line up a provider.

Key takeaway: The right advice changed the deal. A coaching call helped Ruth see a structure she had dismissed, and investor funding covered the upfront costs.

Securing a Five-Year Supported Living Lease

After the refurbishment, Ruth arranged for the property to be used by a supported living provider on a five-year lease. The arrangement suited the building, because it had been used for supported living before. But Ruth flagged an important legal point. During the purchase lease option period, the original owner remained the legal owner. Although Ruth had a management agreement and power of attorney in place, the supported living lease was entered into by the owner. So the owner needed to understand and agree to the responsibilities involved.

Ruth also explained that supported living needs careful due diligence. A provider may need time to secure placements. A lease that looks attractive at first may contain break clauses or repairing obligations that deserve close attention. This was not a case of finding a property and collecting rent. It meant understanding the provider, the lease terms, the funding and the risks. Even so, the arrangement let Ruth progress the investment without buying the property immediately. Then, about 18 months in, something unexpected happened.

Key takeaway: A supported living lease can suit the right building, but it demands real due diligence on the provider, the terms and who holds the legal responsibilities.

The Phone Call That Changed Everything

Ruth received a call from the seller. He wanted to know whether she would complete the purchase early. At first, she was not keen. The agreed price was £500,000, and she did not believe the property had grown enough to justify that figure. She was also concerned about the cost of completing early, including Stamp Duty Land Tax and the fact that fewer monthly payments would have been made towards the price.

But she knew something important. The seller was asking to change the agreement, and that gave her room to negotiate. He explained that he wanted to buy a property in Dubai and needed his money sooner than planned. His circumstances had changed. Because Ruth held a purchase lease option, she was not obliged to bring the purchase forward just because he asked. She could decide whether an early purchase worked for her. Ruth was prepared to proceed, but not at £500,000. The negotiations began.

Key takeaway: When the seller's priorities changed, Ruth's option gave her the flexibility to say yes on her terms, not his.

A £500,000 Valuation on a £330,000 Purchase

Eventually, Ruth and the seller agreed a revised price of £330,000. That is £170,000 less than the original £500,000 option price. It is worth noting that the seller had already received the option fee and the monthly payments under the earlier arrangement, so the £330,000 was not the only money he received. Even so, the reduction was substantial. He got access to his money earlier, Ruth secured a far better price, and both sides could move on.

The next challenge was the finance. Ruth explained that the property received a commercial valuation of £500,000. She then worked with a specialist mortgage broker to arrange finance through Shawbrook. This mattered, because many lenders assess borrowing against the lower of the purchase price and the valuation. Her broker was able to present the full history of the transaction, including the money already paid under the option and the refurbishment spend. The lender accepted the commercial valuation for the financing structure.

Ruth explained that the resulting mortgage covered the purchase and the associated costs, including around £23,000 in Stamp Duty Land Tax. She also reported that the transaction released about £20,000, which her investors were happy to leave in the company for future projects. The exact figures were specific to her circumstances. But the principle is worth understanding. How you structure and document a deal can make a real difference when it comes to refinancing or completing.

Key takeaway: A seller's motivation can change mid-agreement. A properly structured option gave Ruth the time and flexibility a conventional purchase never would.

What You Can Learn From Ruth's Deal

Several moments in Ruth's story turned on specialist advice. The coaching call helped her see that the option could work despite the higher future price. Specialist legal advice helped her put the agreement in place, then amend it for the early completion. Her mortgage broker knew how to present the transaction to a suitable lender. Without the right people, Ruth might have rejected the deal at the start, or struggled with the finance at the end. That is why I talk so often about building your property power team.

There are five lessons I would pull out. First, find out why the owner is selling. Ruth asked questions and discovered the owner was overseas, the property was empty, and he was thinking of renting it out again. Second, do not assume a higher future price makes a deal unattractive, because the structure of the payments matters. Third, negotiate the terms, not just the price. The option fee, monthly payments, rent-free period and purchase date were all important. Fourth, remember that circumstances change, as the seller's move to Dubai showed. Fifth, get specialist advice, because these deals involve legal, financial and commercial detail.

Key takeaway: The best deal is rarely just the lowest price. Ask why the owner is selling, negotiate the whole structure, and surround yourself with specialists.

Could Purchase Lease Options Help You in 2027?

Ruth's story is a great example of why investors should understand creative property strategies. She found a property that had been on the market for almost a year. She negotiated a purchase lease option rather than buying immediately. Then she used investor funding for the upfront costs and refurbishment. And when the seller wanted to complete early, she negotiated the price down from £500,000 to £330,000.

If you would like to learn how purchase lease options work, including how to find suitable properties, approach owners and structure agreements, I am running a special live training on using these strategies in 2027.

Live Purchase Lease Options Training for 2027

Learn how purchase lease options work, how to find suitable properties, how to approach owners, and how to structure agreements that work for everyone involved.

Secure Your Place on the Training

Frequently Asked Questions

What Is Supported Living in Property Investment?

Supported living is accommodation let to a provider who supports vulnerable tenants, often on a longer lease. Ruth's property had been used for supported living before, and she arranged a new five-year supported living lease after refurbishing it. These arrangements can offer stable income, but they need careful due diligence.

What Is a Purchase Lease Option?

A purchase lease option lets you secure the right to buy a property at an agreed price in the future, while leasing and operating it in the meantime. Ruth used one to control and refurbish the property, and to arrange the supported living lease, before completing the purchase.

Can You Renegotiate a Purchase Lease Option?

You can, if both parties agree. When Ruth's seller wanted to complete early, she was under no obligation to bring the purchase forward. That gave her room to negotiate, and the agreed price fell from £500,000 to £330,000.

Does a Supported Living Deal Need Special Due Diligence?

Yes. You need to understand the provider, the lease terms, any break clauses or repairing obligations, and the funding behind it. During an option period, the legal owner also stays responsible for the lease, so everyone must agree to their obligations. Always take appropriate legal and financial advice.

Are Ruth's Results Guaranteed?

No. Every property deal is different. Ruth's experience is an individual case study, not a guarantee of similar results. Always carry out your own due diligence and obtain appropriate legal, tax and financial advice.

Final Thoughts: Why the Right People Matter

When Ruth applied for our scholarship, she was not just another name on a form. I had already noticed her. She attended training, joined coaching sessions, asked questions and helped other people. When I reviewed the applications, I saw someone genuinely committed to learning and taking action. That is one reason I chose her, and she has kept it up through the Gloucester pin meeting and our Next Level community.

The point is not that you need to be the loudest person in the room. It is that building relationships and making yourself known can create opportunities. Ruth's investor found her because of her work. Her coaching helped her recognise a deal she might have rejected. Her professional team helped her complete a complex transaction. None of that happened in isolation.

Every property deal is different. Ruth's experience is an individual case study, not a guarantee of similar results. Always carry out your own due diligence and obtain appropriate legal, tax and financial advice.