Offa provides Sharia-compliant re-bridging facility for international investor

Sharia-compliant lender Offa has completed a £826,000 re-bridging loan for a Saudi-based investor.

The client required the funding to cover three existing finance facilities across three flats in London, including two one-bed flats and a two-bed apartment, before taking on longer-term Sharia finance.

The finance was complex with multiple mortgage lenders and their solicitors, leading to increased legal processing and underwriting.  

Despite these challenges, the facility — agreed at 70% FTV on a six-month term — was completed in 21 days from the initial application to drawdown of funds.  

“We have worked with this international property investor over the last three years and are delighted to provide this re-bridging facility,” said Bilal Ahmed, founding partner of Offa (pictured above).

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%. 

“Sharia-compliant finance is now an established and trusted part of the mainstream UK financial services landscape, used by Muslims and non-Muslims alike.”

Mohammed Saqub, the head of Islamic finance at Shakespeare Martineau LLP, which handled the legals for Offa, added: “It has been great to support Offa from the very beginning and to see its continuous success and growth.  

“This transaction further highlights its credentials in providing novel sharia-compliant instruments in the UK that empower communities to access finance and prosper in line with their faith principles.”

Over the next 12 months, Offa will start offering refurbishment, planning and development bridging finance, as well as a shared-risk ethical finance facility — a Sharia-compliant equivalent of a joint venture.

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