Islamic and Sharia Compliant Mortgages
We are proud to say that we specialise Islamic mortgages and have established close links with Islamic Bank of Britain and their solicitors.
We have completed many transactions being not only sales and purchases but also redeeming outstanding finance and transferring the property into the name of the client.
Let us give you an idea of the process involved. In very basic terms, what happens is that bank purchase the property and then grant a Lease to you and you will then pay a monthly premium for the term of the finance. This will be set out in the Home Finance Letter from the bank. The process relates to both your purchase or re-financing of a property.
Your first contact will be with a representative from the bank who will take your instructions and a valuation fee.
An Home Finance Letter and Valuers report will then be sent to you. This sets out the terms on which the bank are prepared to assist you with either your purchase or re-financing. It is the equivalent of a Mortgage Offer made by other final institutions.
A Local Search is required to ensure that there are no adverse entries that affect the property. We have an arrangement with some Local Authorities to carry out Searches online so there is no delay in obtaining a result within twelve hours.
Hopefully, by this stage, we will have received a contract (in the case of a Purchase) from the Sellers Solicitors or (in the case of re-financing) the deeds from your current lending institution.
We will then be able to send all required documents to the solicitors acting on behalf of the bank, for their approval.
When they respond, we will be able to proceed to completion.
In view of the additional work involved, professional charges will be higher than normal, but we will have given you a fixed price quotation with details of disbursements (payments to others). Please also be aware that you will be responsible for the payment of two Land Registry Fees, one in respect of the bank and the second in respect of the Lease which will be granted to you.
You will be expected to arrange Buildings Insurance in the sum recommended in the Valuation Report and must have the bank as joint insurers. If this is not possible, their interest in the property will at the very least need to be noted on the policy.
We would be more than happy to deal with any Islamic mortgage matters that you may have and would also be delighted to establish a working relationship with you.