Offa completes Shariah-compliant rebridge for international investor
Shariah-compliant bridging provider Offa has completed a £826,000 rebridge with a Saudi-based international investor for three residential properties in London.
The Shariah-compliant finance was to cover three existing facilities across three flats in SE18, including two one-bedroom flats and a two-bedroom flat, on a six-month term, with an LTV of 70%.
The client needed short-term funding before taking on longer-term Shariah finance.
Bilal Ahmed (pictured), founding partner of Offa Alternative Ethical Finance, said: “We have worked with this international property-investor over the last three years and are delighted to provide this rebridge, with ethical finance.
“We worked closely with the client, the law firm and the exiting mortgage lenders to provide fast finance, to meet pressing deadlines.
“The finance was complex with multiple mortgage lenders and their solicitors, leading to increased legal processing and underwriting.
“Despite these challenges, it was completed in just 21 days from the initial loan application to draw-down of funds.
“Since our launch in the Autumn of 2019, we have seen strong demand for our residential (non owner-occupied) and commercial bridging finance products, which range from £100,000 to £5m and with a maximum FTV (finance to value) of 75%. We provide finance to UK residents, expats and international investors based overseas.
“Shariah-compliant finance is now an established and trusted part of the mainstream UK financial services landscape, used by Muslims and non-Muslims alike.
“Around the world, Islamic finance has been growing at a rate of 10-15% each year and currently accounts for $2.88tn of assets. $6.9bn of which are held in the UK – where Muslims make up around 6% of the population.”
Simon Coghlan, director at Shakespeare Martineau LLP, said: “It is a pleasure to work with Offa and we share their ethical approach to financing.
“The deadline was tight on this multi-property transaction, but our dedicated team were well placed to assist in ensuring completion took place on time.”
Mohammed Saqub, head of Islamic finance at Shakespeare Martineau LLP, added: “It has been great to support Offa from the very beginning and to see its continuous success and growth.
“This transaction further highlights their credentials in providing novel sharia compliant instruments in the UK that empower communities to access finance and prosper in line with their faith principles.”