Introduction
You should be aware that there are key differences between buying a property to use as your own home or as an investment for rental purposes. This Buy to Let section outlines some of these to help you make the right decision. Under current rules, the majority of Buy to Let transactions are not regulated by the Financial Services Authority. Please call alburaq if you require further clarification.
At alburaq we are aware that there are few alternatives available to Muslims seeking to invest their funds in a way which complies with their faith. With this knowledge alburaq provides Shariah compliant finance to help you purchase residential property as an investment, in a market which is now commonly know as 'Buy to Let'.
Ownership of property has always held a strong attraction for our customers as a way to potentially earn a return from rental income and, if property prices rise then also capital appreciation on your investment. Earning an income from property is considered permissible within Islam, provided that the property is not involved with immoral or prohibitive activities, such as gambling or the sale of alcohol.
Scholars encourage the ownership of property and often quote a hadith;
"whom so ever sells his/her real estate and does not exchange for the (entire) sale price for another (similar) estate, then he is not blessed in this transaction". (reference:'Ibn Majah')
Scholars will often quote this hadith when describing the basic necessity of housing as well as suggesting the long-term benefits from the ownership of a physical asset such as property when compared to owning perishable goods.
Is it Shariah Compliant?
alburaq Buy to Let follows the Islamic principles of Diminishing Musharaka and Ijara, and are the same principles we follow if you buy a property as your main residence with an alburaq home finance product which have all been fully reviewed by our Shariah board and their fatwa is available upon request.
How much finance can I obtain?
The amount of financial assistance we can provide will depend on the value / purchase price of the property and the estimated level of rental income you can expect to receive. For Shariah reasons subsequent top up finance (capital raising) is not permitted.
Please use the Buy to Let Calculator to determine the amount of finance you can obtain.
To obtain monthly payment quotes please select the 'Buy to Let' option on the Payment Calculator.
