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Terms, Conditions and Criteria for Buying to Let


Minimum property value £100,000
Minimum finance amount £60,000
Minimum first payment At least 25% of property value up to £250,000 (dependent on property yield)

Criteria and Conditions

Payment term
  • Murabaha up to 15 years, minimum term 5 years.
  • Ijara up to 25 years, minimum term 7½ years.
Income Multiples     Murabaha & Ijara
  • Combination of property yield and earned income. However, rental income should exceed Manzil Home Purchase Plan payment costs by at least 15% after all deductions.
Fees
  • Application fee of 0.75% of the finance amount.
Buildings insurance
  • Murabaha – cover is required and may be arranged by the client or may be part of AUBUK’s block policy.
  • Ijara – cover is required and will be arranged by AUBUK under its block policy.
Other types of insurance
  • Life assurance and other types are not compulsory.
Types of property
  • Most types of residential property, including some ex-local authority properties, considered (excluding Right to Buy). The property must be in England & Wales, should be ready to let or require minimal improvements and be wholly used for residential purposes. Multiple lets, i.e. bedsits are not acceptable. The property must be fully self - contained.
  • Leasehold properties must usually have an unexpired term of 40 years plus the payment term.
Tenancies
  • Property should be let as a single private dwelling, i.e. to one family, professional person (s) or company let. This must be under an Assured Shorthold Tenancy agreement for a minimum of six months and a maximum of one year.
  • The property should, where possible, be managed professionally.
Valuation
  • A valuation of the property addressed to AUBUK is required; all costs are payable by the applicant.
Terms & Conditions
  • Full terms will be detailed in our offer letter and Manzil Home Purchase Plan documents.
References
  • Satisfactory Bank references and employment details. Three years accounts for the self employed.

 

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP MONTHLY PAYMENTS ON YOUR HOME PURCHASE PLAN