Are you searching for a truly ethical and Sharia-compliant way to finance your dream home in the UK? Look no further than Islamic Home Finance – your premier destination for Islamic halal mortgage solutions. We have access to leading halal finance options in the UK. Acquisition & Rent Purchase Plan is a unique arrangement designed to align with your values while helping you achieve your homeownership goals.
Understanding the Acquisition & Rent Purchase Plan: At Islamic Home Finance, our access to Acquisition & Rent Purchase Plan stands out as a groundbreaking approach to financing residential properties. This product presents a partnership between the applicant and the bank, creating a mutually beneficial arrangement that adheres to Islamic principles.
How It Works: In this plan, both the applicant and the bank contribute a percentage towards the purchase or refinance of a residential property. For instance, the bank may contribute 75% while the applicant contributes 25% of the purchase price. In the case of refinances, the applicant's contribution is based on the equity in the property.
The bank leases its share of the property to the applicant throughout the finance term. As the term progresses, the applicant makes monthly Acquisition Payments. These payments facilitate the gradual transfer of ownership from the bank to the applicant. With each payment, the bank's ownership share diminishes while the applicant's share increases.
While the Acquisition Payments are being made, the bank charges the applicant rent for the usage of its portion of the property. The calculation of rent is based on the respective ownership shares.
Flexible Options for Ownership: Islamic Home Finance provides flexible ownership options to suit your needs. You can choose to acquire the bank's share before the end of the finance term by making Additional Acquisition Payments (AAPs). Alternatively, you can opt to reduce your monthly Acquisition Payments and acquire the bank's share at the original term's conclusion.
It's important to note that there might be an Early Redemption Charge (ERC) if the bank's share is fully acquired or if AAPs exceeding the 10% annual allowance are made during the Fixed Rental Rate Period.
Seamless Ownership Transfer: Once you've successfully acquired the bank's entire share, whether at the end of the agreed term or through early purchase, the bank will transfer the registered ownership title of the property to you. This final step ensures that you gain complete ownership and control of your dream home.
Additional Information:
On settlement of the finance, an Account Settlement Fee is payable in accordance with the Bank’s standard Tariff of Charges to cover administrative costs.
Customers are responsible for their own solicitor costs, stamp duty, and other conveyancing charges, such as land registry fees, both at the outset and on settlement.
Islamic Home Finance's Acquisition & Rent Purchase Plan offers you a truly ethical and Sharia-compliant path to homeownership in the UK. With its unique structure that aligns with Islamic principles and flexible ownership options, this plan makes us the standout choice for Islamic halal mortgage finance. Join us today and take the first step toward owning your dream home while upholding your values.
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