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Islamic, Amanah and Shariah Compliant Property Finance
If you are thinking of refinancing, remortgaging or buying a property and require help from a team of solicitors who are experts in Islamic, Amanah or Shariah compliant finance, the real estate residential solicitors at JMW are here to help. We can provide invaluable legal advice and services to homeowners, regardless of the financial model you need to use.
Find out more about how our team can help you by getting in touch today. Do so by simply calling 0345 872 6666 or completing our online enquiry form. We can discuss your needs in greater detail and explain the various options available to you.
Under Islamic and Shariah law, it is forbidden to either receive or pay interest. This means that a different approach is therefore required when it comes to certain matters relating to property finance, including buying, remortgaging or refinancing a property. The team at JMW is able to advise on the best options for people of Islamic faith to ensure all dealings adhere to Shariah law, and notably that no bank or lending institution will earn profit from any interest.
There are various mortgage types that work in accordance with Shariah law. These include:
- Murabaha - Similar to a rent-to-own agreement, this is a non-interest bearing loan that involves an agreement between purchaser and seller that sees ownership of the property retained by an intermediary until the loan is paid back in full
- Ijara - Similar to lease-to-own mortgages, these agreements involve monthly instalments, which are used to pay back the purchase price to the lender
- Musharakah - This type of agreement involves a bank or lender, which lends the money and will stand to earn money on any profits earned - and not on any interest - but would also lose out if any losses are made on the property
Achieving the result our clients want in the manner that they want is extremely important to us. For that reason, many of our solicitors are familiar with the Shariah - the Islamic law as detailed in the Quran - and make sure that they are able to provide the services that people need in a way that fits in with their religion, beliefs or way of doing business.
Whether you are remortgaging, refinancing or purchasing, we can advise on the relevant terms of the tenancy or lease and trust deeds that are put in place to ensure the finance is set up correctly.