{"id":14178,"date":"2021-05-07T03:31:12","date_gmt":"2021-05-06T19:31:12","guid":{"rendered":"https:\/\/www.dev.articusfinance.com\/uncategorized-ch\/acquisition-diminishing-musharakah-remortgage-on-1-45-million-property"},"modified":"2023-09-14T16:10:36","modified_gmt":"2023-09-14T08:10:36","slug":"acquisition-diminishing-musharakah-remortgage-on-1-45-million-property","status":"publish","type":"post","link":"https:\/\/backup.articusfinance.com\/ch\/case-studies\/acquisition-diminishing-musharakah-remortgage-on-1-45-million-property","title":{"rendered":"Acquisition diminishing musharakah remortgage on \u00a31.45 million property"},"content":{"rendered":"<p><span style=\"font-size: 15px; font-family: Verdana, Geneva, sans-serif;\"><strong><span style=\"color: #134f5c;\">The case in brief<\/span><\/strong><\/span><\/p>\n<p><!--more--><\/p>\n<ul>\n<li><span style=\"font-size: 13px;\">Client: UK national and resident\u00a0<\/span><\/li>\n<li><span style=\"font-size: 13px;\">Property type: Residential\u00a0<\/span><\/li>\n<li><span style=\"font-size: 13px;\">Property value: \u00a31.45 million<\/span><\/li>\n<li><span style=\"font-size: 13px;\">Loan Amount: \u00a31 million<\/span><\/li>\n<li><span style=\"font-size: 13px;\">LTV: 68%<\/span><\/li>\n<\/ul>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\"><br \/>\nMany of our clients can find it difficult to source financial products that comply with Sharia law. Our client here was looking for <a href=\"https:\/\/backup.articusfinance.com\/ch\/islamic-finance\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">Islamic based finance<\/span><\/a> as they currently had a non-ethical product and wanted to comply with the ethics of Islamic finance.<\/span><\/p>\n<p style=\"font-size: 15px; text-align: justify;\"><span style=\"color: #134f5c; font-family: Verdana, Geneva, sans-serif;\"><strong>The client<\/strong><\/span><\/p>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Our client was a UK national and UK resident looking to source an ethical remortgage. As a self-employed accountant, our client only held two years&#8217; worth of accounts, and to add complexity, they also had a default on their credit file from 3.5 years ago.<\/span><\/p>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Our client was trying to source a significant remortgage amount but was having difficulty with finding a broker who works with ethical lenders and who understands the ethical basis behind Islamic finance. They were looking to remortgage their main residence and so it was imperative that we worked hard to find a strictly ethical lender with competitive rates.<\/span><\/p>\n<h2 style=\"color: #134f5c; font-size: 15px; font-family: Verdana, Geneva, sans-serif;\"><strong>Our solution<\/strong><\/h2>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">We worked closely with our client to ensure that we proposed a strictly ethical lender who would also offer very competitive rates to UK residents\/nationals. We brokered an acquisition diminishing musharakah for our client, which means that the client and the bank contribute a percentage towards the remortgage of the property. The <a href=\"https:\/\/backup.articusfinance.com\/ch\/private-bank-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">private bank<\/span><\/a> will then lease its share in the property to our client for the duration of the mortgage.<\/span><\/p>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Over the mortgage term, our client will make monthly acquisition instalments. With each acquisition instalment, the bank\u2019s share in the property diminishes while our client\u2019s share increases. The bank charges the customer rent for the share that it owns, with the property transferring to the client at the end of the term. The mortgage was secured at \u00a31 million.<\/span><\/p>\n<p><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px; background-color: transparent;\">There are very few mortgage brokers like Articus Finance, who are able to deal in mortgage products compliant with Sharia law, or who have the scope of lenders available to them. Learn more about our <\/span><span style=\"color: #45818e;\"><a style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px; font-weight: normal; text-decoration: underline; color: #45818e;\" href=\"https:\/\/backup.articusfinance.com\/ch\/islamic-finance\" rel=\"noopener\">Islamic finance service<\/a><\/span><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px; background-color: transparent;\"> or <a href=\"https:\/\/backup.articusfinance.com\/ch\/contact\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">talk to our brokers toda<\/span><\/a><span style=\"text-decoration: underline; color: #45818e;\">y<\/span>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The case in brief<\/p>\n","protected":false},"author":1,"featured_media":14179,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[70],"tags":[],"class_list":["post-14178","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\/acquisition-diminishing-musharakah.jpg","_links":{"self":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14178","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=14178"}],"version-history":[{"count":1,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14178\/revisions"}],"predecessor-version":[{"id":20975,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14178\/revisions\/20975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/media\/14179"}],"wp:attachment":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/media?parent=14178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/categories?post=14178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/tags?post=14178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}