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Property deal in partnership

Ansar Housing is introducing an Islamic house purchase partnership contract.

Under the property purchase agreement, which is claimed to be compliant with Sharia law, the company and client jointly purchase the property.

Under a separate agreement, the buyer rents the property and, during the tenancy, the client can buy some or all of Ansar’s property share at market value.

On purchase of the final share of Ansar’s stake in the property, the client owns the property outright.

Clients can buy the entire property over terms from seven to 20 years.

The average rental rate is expected to be between 6 and 7 per cent a year fixed for the term. The partnership approach ensures returns are linked to property prices and rental yields over the term of the contract. Ansar chief executive Ajmal Ramzan says: “Unlike other products, this is much more like a partnership.”

Halal Financial Services chief executive Tariq Mahmood says: “This product has been developed with an open market appeal. It is really positive that we have another entrant in the market for the Islamic community.”

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