("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 is very straightforward and although the documentation is different to that used in a conventional mortgage, the process is in no way more complicated or time consuming than buying a property in any other way.

The key features of Ijara are described below.

• Suitable for the purchase of a house or flat
• Suitable for replacing an existing interest mortgage (see section on replacing an existing mortgage)
• May be fully paid at any time without penalty
• Extra payments may be made once a year
• Payments fixed annually, from April to April

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 ‘do I qualify’)
• If we are able to help, AUB (UK) will buy the property in its 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 will enter into a lease with AUB (UK) which details your rights to occupy the property.
• Once the property is purchased you will make monthly payments to AUB (UK). 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 AUB (UK) 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 AUB (UK) at any time by paying us the balance of the purchase price.

Manzil represents a long-term financial commitment and the legal contracts we will 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