lease-to-own housing schemes in Lagos

If you’ve been dreaming of owning a home in Lagos but feel locked out by high down-payments, sky-high mortgage rates, or the headache of saving for years — you’re not alone. In 2025, lease-to-own housing schemes in Lagos are gaining traction as a creative, realistic path for middle-income Nigerians to bridge the gap between renting and full ownership.

In this article, we’ll break down what these schemes are, why developers and the Lagos State government are pushing them, what the risks are, and exactly how the lease-to-own process works — so you can decide whether this could be your ticket to owning a home in the city.

What Is a Lease-to-Own (or Rent-to-Own) Housing Scheme?

First, some definitions. A lease-to-own (also called rent-to-own) housing scheme is a hybrid between renting and buying:

You move in and pay a monthly rent, just like a tenant.

But part of what you pay is credited toward a future purchase of the property.

At the end of a fixed lease period, you have the option (or obligation, depending on the contract) to buy the home.

This gives hopeful homeowners a way to “test drive” a property, build up equity, and lock in a purchase price — all without taking on a traditional mortgage upfront.

Why Lease-to-Own Housing is Trending in Lagos in 2025

There are several reasons why lease-to-own is becoming more popular in Lagos today:

1. Growing Demand for Affordable and Accessible Homeownership

Lagos continues to struggle with a serious housing deficit. According to the Lagos Resilience Strategy, Lagos State is using inclusive models like rent-to-own to reduce the deficit and help residents access decent housing. 

Many middle-income Lagosians earn steady incomes but don’t qualify for traditional mortgages, or they don’t have the large down payments needed. A lease-purchase model can lower the barrier to entry.

2. Innovative Developer Models

Major developers are already pushing lease-to-own. For example, Mixta Africa launched a scheme called DUO, where clients pay a 5% non-refundable equity contribution, then lease for up to 3 years, after which they can complete payment and take ownership. 

This model makes property more accessible to working families, especially in planned communities. 

3. Government Support

Lagos State Government is backing rent-to-own as part of its affordable housing push. Under certain programs, prospective homeowners pay a 5% commitment fee, take possession early, and then pay the rest over a long period (e.g., 10 years) at favorable rates. 

This kind of public-private partnership is crucial: it helps scale affordable housing while reducing risk.

4. Inflation and Property Price Risk Mitigation

Lagos real estate prices can appreciate quickly. For someone on a lease-to-own deal, locking in a purchase price early can protect against future inflation — if property values go up, you’re still paying the original agreed amount. As noted in rent-to-own models, this can be a huge financial advantage. 

Pros of Lease-to-Own Housing Schemes in Lagos

Here are the main advantages of going the lease-to-own route:

Lower Upfront Cost

You don’t need a massive down payment like full buy-outright.

Some schemes require just 5% commitment/equity fee. 

Build Equity While You Rent

A portion of your monthly rent typically goes into a “rent credit” or is counted as part of your future purchase. 

So, you’re not just paying for accommodation — you’re investing in your future ownership.

Price Lock-in

Your purchase price can be locked in at the beginning of the deal. If property prices go up over your lease period, you benefit. 

Time to Improve Your Financial Position

While leasing, you have time to stabilize income, build savings, or improve your credit.

This is particularly helpful if you don’t qualify for a mortgage now but expect to later.

Test the Home/Neighborhood

Living in the property before buying allows you to assess the community, condition, and whether it really suits you.

You reduce the risk of buyer’s remorse or investing in a home that doesn’t feel right.

Government-Backed Schemes Are More Inclusive

Lagos government’s rent-to-own programs target residents from different income levels. 

With long repayment periods (e.g., 10 years), the burden is spread out. 

Potential for Job Creation & Community Development

Large-scale lease-to-own schemes often come with infrastructure development, estate management, and community facilities. Lagos housing schemes are also linked to job creation in construction and maintenance.

Cons & Risks of Lease-to-Own in Lagos

It’s not all sunshine — there are real risks and downsides to these schemes.

1. High Monthly Payments

Rent under a rent-to-own deal often includes a “premium” over market rent.

For many middle-income earners, this can strain the budget — some lease-to-own flats demand between ₦150,000 to ₦300,000 monthly. 

That may exclude many Nigerians whose incomes are not aligned with these levels.

2. Large Initial Equity or Option Fee

Even though 5% is often cited, 5% of a Lagos home can still be very expensive. For example, on a ₦20 million unit, that’s ₦1 million.

Sometimes, the “option fee” (or commitment fee) may be non-refundable. 

If things go wrong, you may lose this upfront money.

3. Legal & Regulatory Risks

Nigeria’s legal framework around foreclosure is weak. 

If a tenant defaults, developers may struggle to repossess property due to court delays and inefficient foreclosure processes. 

Contracts may be poorly drafted or ambiguous — who owns responsibility for repairs, maintenance, and what happens if you decide not to buy? There’s often no standardization. 

Without proper legal advice, you could be exposed to significant risk.

4. Risk of Non-Purchase

Not all tenants will convert to buyers. If you don’t or can’t buy at the end, you may forfeit option fees and credits. 

Some agreements may obligate you to buy. If your financial situation changes, you could be stuck.

5. Title and Property Risk

As with any real estate transaction in Nigeria, there may be title complications, land-use issues, or missing documents (like Certificate of Occupancy). If these aren’t properly verified, you could face legal trouble later.

Because lease-to-own models often mean less upfront risk for tenants, some may neglect due diligence.

6. Maintenance Ambiguities

Who is responsible for maintenance during the lease? Some contracts leave this unclear.

If you are building equity, you may feel more responsible for property upkeep; but if you're legally still a tenant, the developer or landlord may not act in your long-term interest.

7. Economic Risk

Inflation, currency devaluation, or economic downturn can affect your ability to pay monthly rent or make the final purchase.

Changes in interest rates (if financing is needed at the end) can alter your capacity to complete the purchase.

Real-Life Examples of Lease-to-Own in Lagos (Case Studies)

To bring things closer home, let me walk you through some real-world schemes happening in Lagos today:

1. Mixta Africa – DUO Scheme

How it works: With Mixta’s DUO, home seekers pay a non-refundable 5% equity deposit and then lease for up to 3 years. 

At the end: You have the right to complete the payment (pay the remaining balance) and take full ownership. 

Title: Title / ownership documents (e.g. deed) are handed over to you only after full payment. 

Why it's attractive: It opens up Mixta’s affordable estate offerings (like Marula Park 2-bedroom) to middle-income earners. 

2. Lagos State Government Rent-to-Own

Commitment fee: They require a 5% commitment fee from beneficiaries. 

Payment spread: After taking possession, the remaining balance is paid over 10 years per some government plans. 

Track record: At one point, Lagos handed keys to 150 new homeowners under this scheme, bringing cumulative beneficiaries to 650 in that program. 

Access to many estates: The scheme is spread across 12 housing estates under Lagos HOMS (Lagos Homes Mortgage Scheme). 

3. Public-Private Partnership (PPP) Initiatives

Legrande Properties runs a rent-to-own initiative in Alexandra Courts Estate in Ibeju-Lekki, in collaboration with Lagos State Government and Federal Mortgage Bank of Nigeria. 

They tie into National Housing Fund (NHF): some of their off-takers must be NHF contributors, and loans of up to ₦15 million are made possible. 

How the Lease-to-Own Process Works Step by Step

If you’re considering signing up for a lease-to-own scheme in Lagos, here’s a simplified, realistic roadmap based on current models:

Research & Choose a Developer / Scheme

Identify developers offering lease-to-own (Mixta, Legrande, etc.) or government-backed rent-to-own.

Visit their websites or model estates.

Understand the Terms

Ask for the term sheet or contract draft — how long is the lease? Is there an option or obligation to buy?

Confirm how much of your rent counts as “credit” toward purchase.

Ask about the option / commitment fee (how much, refundable or not).

Legal Due Diligence

Hire a real estate lawyer to review the contract. Given Nigerian legal realities (e.g., weak foreclosure laws), it's critical to ensure terms protect you. 

Verify all property titles: Certificate of Occupancy (C of O), Deed of Assignment, Governor’s Consent (if needed).

Make the Initial Payment

Pay the commitment or option fee.

Make sure you get a formal receipt and a contract backing you up.

Occupy & Pay Monthly

Move into the property as a tenant.

Pay agreed monthly rent. Keep track of how much goes to “credit” (your future equity) vs standard rent.

Monitor & Maintain

Clarify who handles maintenance during the lease: you or the developer.

Document the condition of the property when you move in (photos, inventory) to avoid later disputes.

End of Lease — Choose Your Path

At the end of the lease period, exercise your option (if there is one) to buy.

Alternatively, if the contract requires you to purchase, be ready to make full payment or refinancing.

Complete Payment & Transfer Title

Pay the remaining balance.

Once fully paid, the developer should hand over title documents.

Move to Full Ownership

After payment and legal transfer, you're now the full owner.

Register the property in your name, pay any transfer fees, land registry costs, and take care of service charges or estate management.

Key Considerations Before You Sign Up

Here are some practical tips and red flags to watch out for — based on my experience and reporting in the Lagos real estate scene:

Capacity to Pay: Be sure you can sustain the higher monthly payments for the full lease term. It’s not just rent; you’re building toward equity.

Legal Advice Is Non‐Negotiable: Given the weak foreclosure framework in Nigeria, sloppy contracts could cost you dearly. 

Exit Strategy: What if you change your mind before the lease ends? Ask: Can you walk away? Do you lose your fees?

Credibility of Developer: Research the developer’s track record. Do they deliver? Do they have other estates?

Title Integrity: Make sure the property has a clean title. As many seasoned real estate players point out, title issues are common in Nigeria.

Regulatory Risk: There’s no blanket national law standardizing rent-to-own, so terms vary. Be cautious.

Payment Structure: Confirm exactly how rent credits are calculated, documented, and used toward final purchase.

Maintenance Clauses: Who is responsible for repairs, and how are disputes resolved?

Why Some People Are Skeptical

While many Nigerians see lease-to-own as a dream, critics raise important concerns:

As published in Punch, some industry insiders argue that foreclosure laws are too weak, creating major risk for developers. 

If tenants default, legal repossession can drag on for years, hurting the viability of these schemes. 

The high monthly payments combined with large option fees effectively restrict these schemes to a narrow portion of the middle class. 

There’s no guarantee that all tenants will convert to buyers. The risk of forfeiting credits and deposits is real.

Market risk: if you lock in a price and the value drops, you may have overpaid. On the flip side, if property values rise, the developer may regret fixing the price too low.

Social & Cultural Reactions from Lagosians

From my research and engagement on social media and local forums (including Reddit and Instagram), here are real human reactions:

On r/Nigeria, one user lamented how high rent in Lagos is becoming:

“Rent in Lagos is seriously out of control … many tenants don’t have consistent basic amenities even though they’re paying so much.” 

Another prospective buyer shared:

“For me it's an expensive curiosity … property values in Lagos seem to be constantly on the rise … but I still can’t decide.” 

Legal risk comes up often: What documents do you need? On Reddit, someone pointed out:

“You need a Certificate of Occupancy … execute a Deed of Assignment … get evidence of payment … because those land-use charges don’t go away.”

These voices reflect hope, skepticism, and the real financial anxieties many Lagosians feel.

My Commentary: Is Lease-to-Own a Game Changer or Just Another Real Estate Gimmick?

Speaking from my vantage as a real estate journalist observing the Lagos market closely: lease-to-own is one of the most promising housing models Nigeria has seen in a while. It creatively bridges the gap between crippling mortgage down-payments and the unaffordability of owning outright, especially in Lagos.

But — and this is a big but — it's not a silver bullet. For the model to truly work:

Developers must uphold transparency in contracts, rent credit accounting, and title transfers.

Government must strengthen legal frameworks (foreclosure, housing courts) to protect both developers and tenants.

Buyers should do their homework: hire lawyers, verify titles, and run the numbers.

If done right, lease-to-own could become a cornerstone of Lagos housing policy — enabling more people to own, reducing the housing deficit, and growing inclusive communities. But if ignored or poorly regulated, it risks becoming another financial trap.

Conclusion

Lease-to-own housing schemes in Lagos in 2025 are more than a trend — they are a viable, scalable path for many Lagosians to access homeownership. By combining aspects of renting and buying, these models offer flexibility, equity building, and a way around the often prohibitive costs of traditional mortgages.

But like every good thing, it comes with strings attached: legal risk, high monthly obligations, and a need for careful contract review.

Before you sign on for a lease-to-own deal:

Read your contracts very carefully.

Hire a trustworthy lawyer.

Verify property titles.

Confirm how much of your rent goes into future purchase.

Make sure you can sustain monthly payments for the full lease period.

If you do your due diligence, lease-to-own could be your ticket from “just renting” to “I own my Lagos home.”