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Minimum property value
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£100,000
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Minimum finance amount
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£60,000
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Minimum first payment
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At least 25% of property value up to £250,000 (dependent
on property yield)
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Payment term
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- Murabaha
up to 15 years, minimum term 5 years.
- Ijara
up to 25 years, minimum term 7.5 years.
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Income Multiples
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Murabaha & Ijara
- Combination of property yield, rental income should exceed Manzil
payment after all deductions and earned income.
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Fees
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- Arrangement fee of 0.75% of the property valuation less the first
payment.
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Buildings insurance
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- Murabaha – cover is required and may be
arranged by the client or may be part of AUB (UK)’s block policy.
- Ijara – cover is required and will be
arranged by AUB (UK) under its block policy.
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Other types of insurance
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- Life assurance and other types are not compulsory.
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Types of property
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- Most types of residential property considered (excluding Right to Buy
and ex-local authority properties). The property must be in England
& Wales, should be of good quality and be wholly used for
residential purposes. Multiple lets, i.e. bedsits are not acceptable.
The property must be fully self contained.
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Tenancies
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- 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.
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- The property should be managed professionally.
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Valuation
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- A valuation of the property addressed to AUB (UK) is required; all costs
are payable by the client.
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Terms & Conditions
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- Full terms will be detailed in our offer letter and Manzil documents.
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References
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