Ijarah (Ended with Title Deed) Muntahia Bittamleek:
Ijarah is a form of leasing where a property (commercial building / complex of villas, etc.) is leased by the leaser to the lessee in a way that at the end of an agreed lease period, the lessee becomes the owner of the property by purchasing it from the leaser during or at the end of the lease period at an agreed sale price.
Applying the above, upon your promise to lease from us, we purchase, for ourselves and in our own name, a property specified in your promise and then lease it to you on terms of financial lease. The lease rent is structured in a way that at the end of the lease period, our purchasing cost and profit is recovered and we transfer the ownership of the property to you for a nominal sale price or as a gift by a separate sale or gift contract at the end of the lease period.
Details of the terms under which this product is offered are outlined below:
Terms of Financing:
Type of Property: Freehold.
Advance Rent: Minimum 40% to 50% of the purchase price.
Financing Tenor: Up to 8 years.
Age of Property: Should not exceed 20 years including the repayment tenor.
Mode of Payment: Monthly, Quarterly, Semi-annual or Annual terms are available.
Sources of Repayment: Primary: Rental income of the project. Secondary: Other incomes.
Floating Rentals: Relevant EIBOR + bank’s margin with a minimum of certain rate.
Security: First degree registered mortgage on the plot and the building, in addition to the other terms of approval.
Qualified Assets: Residential, Office Buildings & Villa Complexes.
Documentary Requirements:
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Copy of valid passport.
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Full details of personal financial information supported with documents.
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Personal bank statements for the last six months.
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Completed finance application form.
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Copy of site plan.
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Copy of title deed.
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Details of construction completion certificate and rental income in case of building (supported with copies of tenancy contracts).
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Paying the applicable fees for evaluation of the underlying building.