{"id":14124,"date":"2021-05-12T04:55:26","date_gmt":"2021-05-11T20:55:26","guid":{"rendered":"https:\/\/www.dev.articusfinance.com\/uncategorized-ch\/rent-only-diminishing-musharakah-on-london-property-for-pakistani-national"},"modified":"2023-09-14T16:56:39","modified_gmt":"2023-09-14T08:56:39","slug":"rent-only-diminishing-musharakah-on-london-property-for-pakistani-national","status":"publish","type":"post","link":"https:\/\/backup.articusfinance.com\/ch\/case-studies\/rent-only-diminishing-musharakah-on-london-property-for-pakistani-national","title":{"rendered":"Rent-only diminishing musharakah on London property for Pakistani National"},"content":{"rendered":"<h2 style=\"font-family: Verdana, Geneva, sans-serif; font-size: 15px;\"><strong><span style=\"color: #134f5c;\">The case in brief<\/span><\/strong><\/h2>\n<p><!--more--><\/p>\n<ul style=\"font-size: 13px;\">\n<li><span style=\"color: #134f5c;\">Client: Pakistani national and Qatar resident\u00a0<\/span><\/li>\n<li><span style=\"color: #134f5c;\">Property type: Buy-to-let purchase (Ethical mortgage)<\/span><\/li>\n<li><span style=\"color: #134f5c;\">Property value: \u00a3750,000<\/span><\/li>\n<li><span style=\"color: #134f5c;\">Loan Amount: \u00a3562,500<\/span><\/li>\n<li><span style=\"color: #134f5c;\">LTV: 75%<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Few brokers in the market are able to offer a strictly ethical lender to those looking to utilise Islamic finance in order to fund a property purchase. This can be further complicated when the borrower is not a UK national and is looking to <a href=\"https:\/\/backup.articusfinance.com\/ch\/buy-to-let-mortgages-in-the-uk\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">purchase the property as a buy-to-let <\/span><\/a>option.\u00a0<\/span><\/p>\n<h2 style=\"color: #134f5c; font-family: Verdana, Geneva, sans-serif; font-size: 15px;\"><strong>The client<\/strong><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Our client was a <a href=\"https:\/\/backup.articusfinance.com\/ch\/buy-to-let-foreign-national-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">Pakistani national with Qatari residence<\/span><\/a>. As an employee of the Qatari government, our client had a high net worth and was looking to create a long term relationship with a broker in order to create an investment portfolio of properties in London.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Our client was very specific on purchasing Zone 2 London properties, which do not have the same high yields as other areas, and therefore did not pass the lenders stress test,\u00a0 which considered the potential yields from rental and the affordability to repay the loan. The client needed to harness their income in order to finance the project, using a tool called top slicing, which is essentially using the client\u2019s own income to offset the modest yields they may acquire through renting the property.<\/span><\/p>\n<h2 style=\"color: #134f5c; font-size: 15px; font-family: Verdana, Geneva, sans-serif;\"><strong>Our solution<\/strong><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Working with a strictly ethical lender who offers competitive rates to non-UK residents, we were able to successfully use the client\u2019s own income (top slicing)\u00a0 to negate the modest yields of the <a href=\"https:\/\/backup.articusfinance.com\/ch\/portfolio-landlord-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">property portfolio<\/span><\/a> they wished to build. We were able to negotiate a rent only diminishing mushakarah, which meant that over the finance term, our client would make monthly payments to the lender which comprised of rent only.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">This meant that our client was only obliged to purchase the share at the end of the finance term, so the customer\u2019s share in the property remained the same throughout the term. This method of financing also means that the customer can purchase the bank\u2019s entire share and settle the debt at any time if they so wish. Once the customer\u2019s share has been paid, they become the sole owner of the property.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Articus Finance worked closely with a specialist ethical lender in order to realise the client\u2019s needs and to offer a competitive package for the client over the mortgage term to the value of \u00a3562,500.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Buy-to-let property in the UK, particularly if they are searching for an ethical lender. Articus Finance are experts in working with such cases. <a style=\"font-weight: normal; text-decoration: underline;\" href=\"https:\/\/backup.articusfinance.com\/ch\/islamic-finance\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #45818e; text-decoration: underline;\">Learn more about our Islamic finance services<\/span><\/a><\/span>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The case in brief<\/p>\n","protected":false},"author":1,"featured_media":14125,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[70],"tags":[],"class_list":["post-14124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies"],"acf":[],"jetpack_featured_media_url":"https:\/\/backup.articusfinance.com\/wp-content\/uploads\/2023\/01\/rent-only-diminishing-musharakah-case-study.jpg","_links":{"self":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/comments?post=14124"}],"version-history":[{"count":1,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14124\/revisions"}],"predecessor-version":[{"id":21020,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14124\/revisions\/21020"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/media\/14125"}],"wp:attachment":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/media?parent=14124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/categories?post=14124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/tags?post=14124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}