Lease Option Extension

[Robert Burns]

I have a lease option agreement on one of my rental properties and it is going to expire the end of September 2021. My tenant buyer will not be able to get a mortgage and wants me to extend the contract for 6 months. The property has appreciated significantly over the 18 months he's been in there and his contracted purchase price is $206,900.  I just ran the current comps on that property and its current value has jumped to $231,100.

So I told him I would write a new Lease Option agreement to start the day after this one expires and told him I want $3000 option fee and also I would need to raise the selling price for the property because of the significant appreciation.

I am trying to decide how much to raise the price.  He's been a great tenant and has paid me the $1500/month lease payment every month he has been in there and I know he is taking good care of the property.

So should I raise the selling price all the way to current value or raise it to something less than all the way and give him some credit for being such a good tenant?

I would appreciate some feedback on this situation.

Thanks in advance!