We are very conscious that there are few investment opportunities for Muslims wishing to save and invest money in accordance with their faith.

Since the introduction of Manzil we have received hundreds of telephone calls asking us to help with the purchase of property as an investment, rather than for use as the main residential home.

It is for this reason that we now allow Manzil to be used for second or third properties being purchased purely as an investment .

The terms that apply to buy-to-let properties are slightly different to our normal terms. See linked page for full terms and conditions.

The reason for this is because we believe that the risks to AUB (UK) are greater when a property is let as opposed to when a property is occupied as the main residence.

The basis of ‘buy-to-let’ is that the net rental income received from the property will be adequate to meet the monthly Manzil payments. We will not necessarily base our decision on the income received from the applicants, but we will of course require proof that the applicants are financially solvent and have a good credit history.

When calculating how much we can assist, we will use the forecast rental income, as assessed independently by our valuer. In circumstances where a property is already let, we will take the actual rent being paid.

The calculation of the amount we can assist with will vary from property to property, but as an indication, we are likely to apply the following rules:-

Gross rental income less 20 to 25%.

We deduct 20 to 25% to allow for the following

• Managing agent charges
• Periods when a property may be empty or between lettings
• Service charges and ground rent if the property is leasehold
• Property maintenance expenses

After deducting 20 to 25% we would expect net rental income to be greater than the forecast Manzil payments by at least 115%.

Example:-

Property to be purchased, value £100,000.

Gross rental income £9,000 per annum.

Therefore:

Net rental income = 25% = £6750 per annum or £562.50 per month.

£562.50 is 115% of £489. Therefore the Manzil payments should equate to no more than £489 per month.

On current Manzil pricing we could help with £69,000, which equates to total monthly payments of £487.68 per month.

Please email us using the link above or call us on Freephone 0800 7833323 for more information about costs.