The following Banking & Finance practice note Produced in partnership with Foot Anstey LLP provides comprehensive and up to date legal information covering:
Islamic real estate finance is becoming ever more popular and increasingly mainstream in the UK and world property markets. Global assets of Islamic finance are estimated to be around $US 2.05 trillion, with Islamic banking contributing to 71% of that total. This has been and will continue to be fueled by developments at home and abroad, with shifting demographic trends, rising income levels, increased investment outside the Gulf Co-operation Council by Middle Eastern investors, strong investment returns in the Halal, infrastructure, and Sukuk bond sectors and the UK is well positioned to continue to reap the benefits of this ever expanding market.
In addition, non-Islamic market participants are increasingly looking to Islamic financing structures to supplement conventional equity and debt funding.
The purpose of this Practice Note is to explore in some detail the main Islamic real estate finance structures:
diminishing Musharaka and
focusing on the documentation required for each structure and the legal, tax and regulatory issues which underpin them in the UK. This Practice Note will also touch upon the principles and practicalities involved in Islamic real estate investment in the context of UK real estate transactions.
Ijarah, literally ‘leasing’, is a structure commonly used in the UK residential property market.
Under this structure, the bank buys the property from the seller and then the bank grants a lease to the buyer for a
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
What are OFTOs?Offshore Transmission Owners (OFTOs) are the owners of offshore transmission assets which connect offshore wind farms to the onshore electricity network. The transmission assets comprise everything between the offshore point of connection with the generating wind farm assets and the
Who is a fiduciary?There is no comprehensive list of the relationships which give rise to the existence of fiduciary duties under common law. Some relationships are automatically fiduciary, eg those between trustee and beneficiary, solicitor and client, principal and agent, business partner and
There may be times when, rather than assigning the benefit of an agreement to a third party, the original parties wish instead to end their obligations to each other under that agreement and, in effect, recreate it, with the third party stepping into the shoes of one of the original parties. This is
The right to notice means a right for the employee to remain in employment for the period of notice, not simply to be paid for it. An employer will therefore often include in the contract an express right to make a payment in lieu of notice ('PILON') as an alternative to giving notice, to ensure
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.