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You will make
monthly payments towards buying the Bank’s share (this is called the Acquisition
Payment) as well as an installment of Rent. The example below explains how the
Acquisition Payments and Rent may be
calculated:
-
Assume
a property purchase price of £300,000
-
Assume
you have £90,000 (i.e.30%) to pay towards the property purchase price (This will
be the your share.)
-
Assume
a Rental Payment rate of 7.5% per
annum.
-
On
this basis, the bank will pay the seller £210,000 (i.e.
70%)
-
You
will pay £90,000 (i.e.30%) towards the purchase
price.
-
These
payments will be made via the
solicitors.
-
On
completion you will agree to purchase the bank’s share under the Diminishing
Musharaka
agreement
-
You
will also agree to lease the bank's share of the property under the Ijara
agreement.
-
On
a monthly basis, you will be paying an Acquisition Payment and a Rental
payment.
Based on these
circumstances, and calculating the payments over a 25 year term,
the payment
schedule for the first six months will be as shown in the table
below.
| Date |
Rental
Payment |
Aquisition Payment |
Total Monthly Payment |
Bank's Equity in the
Property |
| 1st July |
£1,312.50 |
£239.38 |
£1,551.88 |
£209,760.62 |
| 1st Aug |
£1,311.00 |
£240.88 |
£1,551.88 |
£209,519.74 |
| 1st Sept |
£1,309.50 |
£242.38 |
£1,551.88 |
£209,277.36 |
| 1st Oct |
£1,307.98 |
£243.90 |
£1,551.88 |
£209,033.46 |
| 1s Nov |
£1,306.46 |
£245.42 |
£1,551.88 |
£208,788.04 |
| 1st Dec |
£1,304.93 |
£246.95 |
£1,551.88 |
£208,541.09 |
The above is for illustration purposes only. The details
of your payment will depend upon your circumstances and upon the
Rental Payment rate being appled to your Commercial Property Finance
facility
Additional
costs
As with all
property purchases, there will always be some unavoidable costs and expenses.
Here are some of the most significant costs that you would be responsible for
paying:
Stamp
Duty Land
Tax
A tax payable
on all UK property purchases (unless the
property is exempt).
Valuation
Reports and Survey
A property
valuation will be necessary.
Solicitor’s
fees
We believe that
it is best practice for our customers to obtain their own legal advice.
Custromers will
be required to instruct a solicitor and act on their behalf. Customers will also
be required to pay the Islamic Bank of Britain legal fees in addition to their
own legal fees.
For
further information about this product and to find out how we can help you,
please call us on 0845
6060 786
or visit
your local branch.
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