("Lease-to-Own")

Ijara is proving to be our most popular method of house finance. This is because it is more flexible than Murabaha if you wish to pay us early or if you wish to make additional, ‘lump sum’ payments.

The procedure for buying a property using Manzil Ijara Home Purchase Plans is very straightforward and although the documentation is different to that used in a conventional mortgage, the process is in not normally more complicated or time consuming than buying a property in any other way. As with any mortgage, you must seek legal advice before completing the purchase.

The key features of Ijara are described below.

You can

• Purchase either freehold or leasehold residential property in England and Wales, over a period from 7½ to 25 years.
• Obtain finance up to a maximum of 83% of the property value.
• Refinance (re-mortgage) from an existing standard interest mortgage (subject to eligibility – See our terms and conditions).
• Refinance (re-mortgage) from an existing Islamic Home Finance product (subject to eligibility and receiving sanction from our Shari’ah Advisory and Supervisory Board – See our terms and conditions).
• Make full re-payment of the outstanding balance at any time without early repayment/redemption fees(please note any repayments will be subject to account settlement fees).
• Make additional payments at each rent review, with no charge. Payments are fixed annually, from April to April.
• Purchase a property for letting purposes. ‘Buy to Let’ finance up to 75% of the property’s value is available. Please visit the Buy to Let page for further details.
• Available to UK residents, Non-UK residents, Trusts, Corporates (offshore & onshore), and Partnerships.

How it works

• You identify the property you wish to buy and agree the purchase price with the seller in the normal way.
• You approach us for assistance and complete an application form (see section ‘Qualifying for Manzil’).
• If we are able to help, AUBUK will buy the property in its own name, after solicitors have confirmed that everything is in order.
• We will then sell the property to you as detailed in an agreement titled ‘Promise to Purchase’. The purchase price between AUB (UK) and yourself is the same price as the original purchase price.
• At the same time you enter into a lease with AUBUK which details your rights to occupy the property.
• Once the property is purchased you make monthly payments to AUBUK. These will be claimed by Direct Debit automatically from your normal bank account.
• Each monthly payment is calculated so that part is applied towards the purchase of the property from AUBUK and part of it is rent.
• The payments are fixed every 12 months, April to April. At the beginning of April each year, we will reassess the rent and payments are likely to vary.
• You may purchase the property from AUBUK at any time by paying us the balance of the purchase price.

The Manzil Home Purchase Plan represents a long-term financial commitment and the legal contracts we ask you to sign should not be entered into unless you are sure that you understand what they mean and feel confident that you will be able to afford the monthly payments.

To help assess whether you can afford the financial commitment, we will ask you to complete a detailed application form which will give us information about yourself, your employment, your other financial commitments and the house you wish to purchase. We will ask you to submit the application form together with other information, such as bank statements, to help us assess your financial position.

Once we receive the completed application form we will ask for references from your employer or accountant (if self-employed), your bank, your current lender (if appropriate) and your landlord (if you are renting). We will also undertake a credit search on all applicants.

Based on the information we receive, we will normally help you with an amount of up to three times your gross annual salary plus one times any other salary if the application is in joint names.

Please see the linked page for our terms and conditions