Interest free real estate purchase!
We’re the UK’s first estate agent to offer transparent and ethical Islamic finance for those looking to purchase their next home or invest.
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How is it Interest Free Investment?
Understanding the key benefits of the Interest Free model is essential, not only is it transparent and ethical but it also has other benefits.
10% Deposit
40% of the acquisition over 24 months.
10 Year Plan
Buy the remaining shares over 10 years!
Rental Income
Guaranteed rent if using an approved agent.
5% Growth
per Annum
per Annum
Let your investment grow on average of 5% yearly!
How does the model work?
The interest free real estate purchase model is an innovative ethical financing model of real estate acquisition. In such an acquisition model the ownership diminishes against the developer and increases in favour of the ultimate Purchaser. In this case the Developer’s share is gradually bought out by ultimate Purchaser. This innovative model is offered to promote and foster cooperative real estate acquisition.
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Let’s take you through an example.
Based in Birmingham, Hight St, Digbeth, this proposal is for HNW and Sophisticated investors.
Our clients are offering an innovative interest free acquisition model to purchase apartments off-plan in the development at High St, Digbeth, Birmingham.
The developer is offering apartments for off-plan purchases with a 10% deposit. The construction period is set between 24 to 30 months. This allows you to spread the other 40% of the acquisition value over 24 months. Once the construction of the apartment is completed, the real estate will be transferred into an SPV, which will have 240 shares, owned 50/50 between the Developer and the Purchaser.
After the legal transfer and handover to the SPV, the Purchaser then buys the remaining shares on a monthly basis by paying a fixed amount every month for the next 10 years, i.e. 120 months.
This can be done from the proceeds of the rental income of the apartment as it will be ready to generate income. It is guaranteed by the Developer that the monthly purchase of the one share will be no more that the monthly rental income of the apartment, if managed by one of the approved Letting Agents.
After the handover, the buyer remains free at any time to sell the real estate at a higher price. In which case, the Developer will still only be entitled to the outstanding amount at that time. All the additional uplift in value shall be retained by the buyer.
Example of Interest Free Investment
Based in Birmingham, High St, Digbeth is an example of the Interest Free model.
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- Office 1, Izabella House, 24-26 Regent Place, Birmingham, England, B1 3NJ
- info@riverlakehomes.co.uk
- (+44) 01455 241 132
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River Lake Homes are an independent real estate company operating within the UK, dedicated to supporting your real estate journey. As an independent company, we cannot offer financial advice, handle client money, or hold funds on behalf of clients. Whilst we share information and insights through our website and communications, this is purely for general information and guidance. If you’re considering property purchases or investments, we recommend speaking with qualified financial advisers who can provide personalised advice based on your circumstances.
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