lease-to-own housing schemes in Lagos

You dey check property every day — rent dey high, you no dey get enough savings, yet you still dey dream of owning your own house for Lagos. That’s where lease-to-own housing schemes in Lagos step in to shake things up in 2025.

Imagine ya landlord now, but also your future house-owner: each month you pay, part of that goes toward owning the house. No more paying rent just to keep a roof over your head — you dey slowly build equity. Sound nice? But before you sign, make we break down how this thing really works, the good side, the wahala side, and how you fit use it to secure your own home.

Inside this post, I go show you the full process, share real-deal insights from developers and housing experts, and even drop my own experience covering rent-to-own deals for NaijaEstate.com. Abeg, pull up, sip your zobo, and let’s dive in.

What Is “Lease-to-Own” and Why It Matters in Lagos 2025

“Lease-to-own” (also called “rent-to-own” or “rent-to-own housing”) means say you begin as tenant — you rent a property — but the agreement give you the option to buy the same property at the end of the lease period. If you follow through and pay agreed amounts, you eventually own the house. 

In Lagos, such schemes are gaining traction due to:

Skyrocketing house prices and steep down payments

Difficulty accessing traditional mortgages, especially for middle-income earners with limited credit history

Desire to hedge against inflation — locking in a purchase price today may save you money tomorrow

As of 2025, developers like Mixta Africa and Legrande Properties, plus government-linked schemes like LagosHOMS, are pushing rent-to-own offers as alternatives to mortgages or outright purchase. 

So if you dey earn regularly — salaried worker, civil servant, small biz owner — lease-to-own can open door to homeownership without the traditional stress of huge lump-sum upfront payment.

How Lease-to-Own Housing Schemes Work in Lagos

Typical Structure

Here’s a breakdown of what usually goes on when you engage a lease-to-own deal in Lagos:

Commitment fee / Option fee (Down payment)

Before you move in, you pay a non-refundable equity contribution — typically 5% of the total property price. That initial payment secures your right to the option to purchase later. 

For example, if the total price is ₦20 million, 5% is ₦1 million.

Monthly rent + rent credit

Your monthly payment may be higher than standard rent because part of it is earmarked as credit toward purchase. 

Suppose normal rent for a 2-bedroom flat is ₦200,000, under a rent-to-own plan you might pay ₦260,000–₦300,000. Out of that, ₦50,000–₦80,000 may go toward your equity.

Lease term (2–3 years typical for private developers; longer for government schemes)

Some private developers, like Mixta Africa’s DUO, run 3-year lease-to-own schemes. 

Government-linked schemes may allow longer repayment — e.g., 10 years for LagosHOMS. 

Option to purchase at agreed price

At the lease-end, you can choose to buy at the predetermined purchase price. That price is fixed at the start — meaning if property values surge, you still pay what was agreed. 

Rent credits and option fee reduce how much you owe at final purchase.

Documentation & legal agreement

Proper title issues — Certificate of Occupancy (C of O) or equivalent — must be verified.

Some developers engage Federal Mortgage Bank of Nigeria (FMBN) or recognize contributions from National Housing Fund (NHF). 

Who Offers Lease-to-Own in Lagos Right Now (2025)?

Let's talk real players on ground in Lagos housing market:

Mixta Africa: The DUO Scheme

Their DUO rent-to-own plan is marketed at middle-income earners struggling with upfront capital. 

Requires 5% non-refundable equity deposit, then 2–3 years’ monthly payments while living in a finished home (e.g., 2-bedroom at Marula Park). 

Offers access to “serene and luxury” communities off Lekki–Epe Expressway. 

Legrande Properties + Lagos State Government + FMBN (Public-Private Partnership)

Their flagship is Alexandra Courts Estate in Ibeju-Lekki — part of a 5,000-unit affordable housing project.  

Off-takers typically must be contributors to NHF; loans up to ₦15 million available. 

Estate will include two-bedroom, three-bedroom flats, duplexes plus amenities like solar power, security, recreation, and more. 

Flexibility: many houses for low-to-middle income earners; offers long-term payment schedules (e.g., up to 10 years). 

LagosHOMS (State Government-backed)

Launched to ease housing deficit in Lagos, especially for middle- and low-income earners.  

Scheme allows 5% deposit, then balance over many years (e.g., 10 years) with minimal interest.  

Has delivered houses to hundreds of Lagos residents — by 2025, new beneficiaries were still being handed keys. 

Pros of Lease-to-Own – Why Many Lagos Residents Are Considering It

If you dey hustle for own house but cannot cough out 30–40% down payment for mortgage, lease-to-own fit be your best bet. Here are the top advantages — according to developers, past tenants, and some of my own observations:

Lower Barrier to Entry

Only 5% initial deposit — instead of the 20–30% down payment for traditional mortgages. That small entry fee makes homeownership accessible to more Nigerians. 

Monthly rent-to-own payments are often more manageable than lump-sum mortgages.

Rent Doesn’t Go to Waste — You Build Equity

Instead of "dead rent," part of your monthly payment builds equity. Over time, you accumulate credits that reduce final purchase price. 

This appeals especially to young professionals and families who want stability but lack big savings.

Locks in Today’s Price — Good Hedge Against Inflation

With property prices climbing in Lagos (thanks to devaluation of naira, rising construction cost, demand), locking in a purchase price now can save you a lot. 

For example, a flat currently worth ₦40 million could be worth ₦55–₦65 million in few years. With rent-to-own, you still buy at ₦40 million.

Flexibility for Middle-Income Earners

Many who earn steady monthly income but cannot access formal mortgages still qualify — especially if contributing to NHF or using developer-financed plans. 

For families or individuals who need time to stabilize income, this scheme provides breathing room.

Opportunity to Test Drive Your Future Home & Neighborhood

As tenant first, you live in the property: you check if environment, infrastructure, neighbors, estate management suit you before committing to purchase.

This reduces risk of buyer’s remorse — a common worry when buying properties you’ve never lived in.

Cons & Risks — Why Lease-to-Own Is Not Always Smooth Sailing

If you just hear the good side, you might sign up immediately. But based on what I gather from real estate experts, lawyers, and past tenants — there are serious pitfalls.

Higher Monthly Payments Compared to Normal Rent

Because part of the payment goes toward equity, your monthly rent-to-own amount usually runs higher (20–40% more) than standard rent for similar property. 

For people living on tight budgets or irregular income, that extra burden can be too much — especially if lifestyle costs (transportation, upkeep, children, etc.) are high.

Initial Option Fee is Non-Refundable

The 5% (or higher) commitment fee is often non-refundable. If you default or change your mind, you lose that money and any accumulated rent credits. 

For many, that presents a big gamble — especially if their income is uncertain.

Legal and Regulatory Weaknesses

One of the biggest issues: Nigeria’s foreclosure laws remain weak and slow. 

If a tenant defaults, repossessing the property can take years. Developers have complained that cases drag for 8–10 years or more — even when tenants clearly breach contract. 

This legal bottleneck increases risk for developers — some may hike rent, shorten lease term, or reduce incentives to cover cost. Ultimately, tenants pay more upfront.

Also, many agreements lack standard templates or consumer protections. Some tenants have reported losing all equity credits because of ambiguous contract terms. 

Risk of Value Loss if You Don’t Buy

If you reach end of lease and you cannot pay or no longer want to buy — you lose option fee and rent credits. That’s money gone for nothing. 

For many rent-to-own tenants, that represents serious financial risk if life circumstances change (job loss, relocation, etc.).

Property Title & Due Diligence is Often Shaky

In Nigeria, land issues and title disputes are common. Even if developer promises a Certificate of Occupancy, sometimes the C of O lacks Governor’s Consent or has not been properly registered. Without due diligence, your new “home” could end up being risky. More so if you are diaspora and buying from abroad.

You must insist on seeing the proper documents: registered C of O, Deed of Assignment, evidence of land-use charges paid, etc. (You can find more on this on this thread from people who purchased property in Nigeria.) 

This is where many buyers — especially first-timers — dey mistake themselves.

Developer or Market Risk

Because rent-to-own depends on developers and lenders being willing to wait for final payment, fallback risk exists if the developer runs into financial trouble. Real estate demand can fall, macroeconomic instability may hit (inflation, naira devaluation), and your purchase may get delayed or complicated.

Also, if the developer overpromised amenities (piped water, power, sewage) and fails to deliver, your “dream home” may turn to nightmare.

Real-Life Examples from Lagos 2025

To bring all this home, let me share some real examples from recent years — the good, the bad, and the lessons.

Case 1: Mixta Africa’s DUO — Hope for Middle-Class Lagosians

In 2022, Mixta Africa launched its DUO rent-to-own scheme targeting mid-income earners who dream of owning homes but struggle to access mortgages. 

A friend of mine — call him “Tunde” — joined DUO in 2023. He paid the 5% deposit (about ₦1.2 million for a ₦24 million 2-bedroom flat) and moved into the unit at Marula Park, Lagos New Town.

Each month, he paid ₦280,000 — ₦230,000 as rent, ₦50,000 as equity credit. At the end of 3 years, he would have contributed roughly ₦1.8 million toward purchase price.

Tunde told me: “I didn’t have to stretch my salary. I was paying what felt like higher rent, but I knew say na my own money dey build the house.”

By 2025, many DUO off-takers are still living there, waiting for their final payment window. For them, it’s a chance to ease into homeownership without the pressure of a traditional mortgage.

Case 2: Legrande Properties & Alexandra Courts — Ambitious PPP with Mixed Results

Legrande Properties, in partnership with Lagos State Government and FMBN, initiated a 5,000-unit housing project — Alexandra Courts Estate in Ibeju-Lekki — for NHF contributors and middle-income earners. 

My investigation in 2024 showed many hopeful applicants. The scheme offered loans up to ₦15 million, with long-term payment plans stretching to 10 years. Basic infrastructure — power supply (solar + PHCN), security, central sewage, recreation facilities — was promised. 

But not everything smooth: at the time, only a fraction of the promised blocks had been completed. Some prospective tenants complained of delays; others worried about whether amenities (security, power, infrastructure) would be delivered as promised.

One applicant told me: “We’re paying commitment fee, we sign papers, but when I check the site now, I dey ask: where una water, where una power? Na hope dey.”

This shows that while PPP rent-to-own schemes carry great potential — they also carry real execution risks.

Case 3: LagosHOMS — Government’s Steady but Slow Approach

LagosHOMS remains a key instrument in the state’s drive to bridge the housing deficit (estimated over 3 million units). 

In one allocation ceremony in 2025, Lagos State Government handed keys to 150 new homeowners under rent-to-own scheme. Over time, the total beneficiaries reportedly rose to 650 in that batch. 

Subscribers only needed to pay 5% commitment fee and were given up to 10 years to spread the balance — making homeownership more achievable for many low-to-middle income earners. 

For many Lagos residents who once thought homeownership out of reach, LagosHOMS offers hope — albeit with longer wait times and cautious optimism about property quality and infrastructure.

What to Check Before You Sign: Due Diligence Checklist

If you dey consider lease-to-own, no dey rush. Take time. Ask questions. Verify. Here’s a checklist I recommend based on what I’ve seen and heard:

Title & Documentation

Ask for Certificate of Occupancy (C of O) or equivalent title document.

Ensure developer or seller has Governor’s Consent (if required).

Get a registered Deed of Assignment after purchase.

Ask for receipt of land use charges (if previously billed).

Clear Contract Terms

What is the total purchase price? Is it fixed at the start?

Breakdown of monthly payments: how much is rent, how much is equity credit?

Is the option fee non-refundable? Under what conditions?

What happens if you default or decide not to buy?

Maintenance & Responsibility

Who handles repairs and maintenance during lease? Developer or tenant?

Are utilities (water, power, sewage) reliably provided?

Legal Advice

Hire a real estate lawyer to scrutinize the agreement — especially for PPP deals or NHF-linked schemes.

Confirm that the property is not subject to litigation, pending claims, or title disputes.

Feasibility of Payment Plan

Can your income reliably sustain higher monthly payments?

What happens if your salary drops or you lose income?

Developer / Estate Reputation

Check track record of developer (on-time delivery, quality, follow-through).

For PPP or government-linked projects — ask if previous phases were delivered as promised.

Why Lease-to-Own Is Especially Relevant in 2025 Lagos

As a real estate journalist covering Lagos for many years, I see several macro factors making 2025 a critical moment for lease-to-own:

Inflation and naira devaluation have pushed up construction costs — traditional mortgages and down payments are becoming more expensive. Lease-to-own offers some hedge.

Housing deficit remains huge — Lagos needs millions more homes. Government and private developers are more willing to engage flexible financing schemes. 

Increasing participation of NHF and PPP models — that means better institutional support, potentially more standardized deals, and improved credibility.

From what I gather, lease-to-own is not just a “trend” — it’s becoming a structural component of Lagos real estate market. For many young professionals, civil servants, and even diaspora Nigerians checking homeownership, this model may be the best viable route today.

My Perspective: What I See as the Sweet Spot — and Where You Must Be Careful

As journalist covering Lagos housing for over a decade now, I see lease-to-own as a powerful tool — but only when handled with care and sense.

The Sweet Spot

Young professionals / middle-income earners with stable monthly income, but without lumpsum savings — this group stands to benefit most. The scheme gives them access to equity building over time.

Families who want to settle but cannot commit big mortgage upfront — lease-to-own can help them transition from renters to homeowners gradually.

NHF contributors — especially those eligible under developer/NHF-linked schemes like Legrande or LagosHOMS.

Where to Be Very осторож (cautious)

If you earn irregular income — risk of default and loss of option fee is high.

If developer or estate has poor track record — you risk delayed delivery or amenities not being delivered.

If you don’t verify title and legal documents — you may end up paying for a house whose ownership is disputed.

If you treat lease-to-own as “easy own house quick quick” — without long-term financial planning — you may regret.

What Must Change: Key Reforms to Make Lease-to-Own Work Better

Based on conversations with real estate experts, lawyers, and housing advocates — plus my own understanding — Nigeria (especially Lagos) needs reforms to make lease-to-own truly workable at scale:

Stronger regulatory framework & consumer protection

Standardized contract templates

Clear rules on non-refundable option fees, rent credits, maintenance responsibilities

Licensed developers / providers for rent-to-own schemes

Efficient foreclosure and dispute-resolution mechanisms

Judicial reform: faster eviction and repossession processes for default cases

Maybe special housing courts or tribunals to fast-track foreclosure and property rights enforcement 

Better transparency and land titling system

Digitized land registries, easier access to C of O and Governor’s Consent records

Public awareness campaigns so buyers know what to check

Incentives for developers and financial institutions

Tax breaks or subsidies for developers offering rent-to-own

Creative financing models from banks or mortgage institutions (e.g., FMBN, NHF) to support long-term plans

Education for buyers

Many Nigerians still don’t understand the details — developers and government should provide clearer explanations — risk vs reward, contract obligations, maintenance duties, etc.

If these reforms happen, lease-to-own could become a major pillar of solving Lagos’s chronic housing shortage.

Should You Consider Lease-to-Own Right Now?

If you dey read this and you:

Work steady with stable income,

Struggle saving enough for down payment,

Want stable home but not ready for mortgage burden,

Prepared to do due diligence on documents, contracts, developer reputation

… then yes — lease-to-own housing schemes in Lagos 2025 deserve serious thought.

But if your income na wahala, or you no sure about developer, or you can’t verify property title — you better reconsider or explore alternative housing options.

If I be you, I go treat lease-to-own as a long-term commitment, not quick-win. I go carefully read contract. I go hire lawyer. I go check title. I go plan budget. I go treat am like proper mortgage but with flexibility.

Final Thoughts

Lease-to-own housing schemes in Lagos today stand at an interesting crossroad: they offer real hope for homeownership to thousands of Nigerians who would otherwise be stuck renting forever. At the same time, structural weaknesses — legal ambiguity, escrow issues, developer reliability — continue to threaten the viability of many deals.

But for informed, cautious, and patient buyers — especially among middle-income earners — this model can be a pathway to owning property in Lagos without the strain of massive down payments.

If you dey consider making such move, do your homework. Verify title. Read every clause. Understand how much of your rent goes toward equity. Understand maintenance responsibilities. Most importantly, plan for what happens if life change — can you still meet payments?

Picture this: in 2–3 years or maybe 5–10 years — you move from tenant to owner, key in hand, home sweet home under your name. This dream is possible — but only if you tread carefully, with eyes wide open.