At Wahed, transparency is at the heart of how we operate. We want all our investors to feel confident about where their money is going. That’s why we’ve outlined all the costs and fees associated with our real estate investments in this guide, as clearly and simply as possible.

To avoid any ambiguity, we’ve also distinguished between fees charged by Wahed and costs borne due to external obligations such as legal, tax or property management services. Where relevant, we have indicated whether these apply at entry, during the holding period or at exit.

Please note that property-specific costs are shared within the investment documents provided at the time of each property launch.

What Makes Up Your Total Investment?

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When you invest through Wahed, the total investment amount includes both the purchase price of the property and the necessary costs required to complete the transaction professionally and securely.

For example, if a property is priced at £400,000, the total investment may look like this:

• Property purchase price: £400,000
  
• Acquisition costs: £64,000
  
• Total investment: £464,000

In this example, £400,000 goes directly toward acquiring the property, while the remaining £64,000 covers everything needed to facilitate the transaction. This breakdown serves as a useful reference for understanding how your capital is allocated.

Upfront Costs at the Time of Investment

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1. Investment Acquisition Fee - 6% of Purchase Price

A one-time entry fee of 6% is applied when you invest. For our £400,000 property example, this would amount to £24,000, included within the £464,000 total investment.

This is the only fee Wahed charges for acquiring the property and managing it throughout the entire investment period (typically 5 years). We do not charge any ongoing platform or management fees during the holding period.

This fee enables us to conduct the following: 

• SPV setup and legal structure: Incorporation of a Special Purpose Vehicle (SPV) that holds the property.
• Internal Legal Reviews: In addition to external property conveyancers, our in-house legal team reviews contracts with third parties to provide an additional layer of scrutiny.
• Due diligence and research: In-depth screening of the property, which includes market analysis, valuation, condition assessments and rental viability as well as use of market-leading tools to help the team make decisions when reviewing opportunities.
• Regulatory compliance: Maintaining compliance with regulations and managing investor onboarding, KYC and AML processes. 
• Shariah governance oversight: Ensuring each investment is structured and maintained in accordance with Shariah principles, under the ongoing supervision of the Shariyah Review Bureau, our independent Shariah advisor.
• Legal, admin and reporting setup: Legal documentation, investor communications and end-to-end administrative support for each deal.
• Post-investment support: Our post-investment management team will also track your investment and when contracts are up for renewal, aiming to potentially increase the income for the properties. Alongside this, our team is readily available to answer investor queries.
• Technology & platform management: Ongoing maintenance of the Wahed platform so you can browse, invest and track property performance.

This fee reflects the cumulative cost of making institutional-grade real estate available in a fractional format in a sustainable way.
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2. Acquisition Costs (Third Party)

In addition to the entry fee, a number of external charges arise in the process of acquiring a property in the UK. These are not retained by Wahed, and vary based on property characteristics such as size, location and structure.

Stamp Duty Land Tax (SDLT): 5–9% of Purchase Price

This government tax is mandatory for nearly all UK property purchases. The exact rate is tiered and depends on the value of the asset.

For our £400,000 property example, it’ll be £36,000 based on 9% rate.

Professional & Legal Costs: ~ 1% of Purchase Price

This comprises:

• Conveyancing by a qualified solicitor
• Independent property surveys and inspections
• Accounting and legal oversight during the transaction

These are standard components of any professionally managed property transaction. For the same example, this would be roughly £4,000.

Total upfront costs: £24,000 (entry fee) + £36,000 (SDLT) + £4,000 (legal) = £64,000

Ongoing Operational Costs During the Holding Period

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Once a property is purchased and tenanted, a number of recurring costs come into play. These are deducted from the rental income before distributions are made to investors. 

1. Property Management: 6–10% of Monthly Rent

Experienced property managers are engaged to oversee:

• Tenant onboarding and referencing
• Rent collection and arrears follow-up
• Day-to-day issue handling and compliance with tenancy agreements

This ensures the property remains occupied and professionally maintained without any hands-on work required from investors.
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2. Maintenance Reserve: 3–5% of Monthly Rent

All properties require ongoing care. This reserve is used for routine repairs and minor improvements to keep the property in good condition and compliant with safety standards.
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3. Service Charges and Ground Rent: 10–15% on Monthly Rent (Leasehold Only)

This charge is applicable only to leasehold properties. It covers shared building maintenance, insurance and any ground rent obligations. For freehold properties, these costs do not apply.
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4. SPV Corporation Tax: 19% of Net Rental Income

Each property is held in a UK-registered SPV, which is taxed at the UK corporation tax rate of 19% on net income (i.e. gross rental income minus operational costs).

The remaining post-tax profit is distributed to investors according to their ownership share.

How Do Operational Costs Affect Your Returns

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When evaluating property investments, it’s important to distinguish between two types of returns:

• Rental income (received during the investment period)
• Capital appreciation (realised at the point of sale, if the property value increases)

This section focuses on rental yield, the income you receive from tenants, after costs. While it's an important indicator of cash flow, it is not the total return from the investment.

Here’s how it works:

• Gross Yield: Return before costs are deducted
• Net Yield: Return after all operational costs are accounted for

Example (based on our £464,000 total investment):

• Annual rental income: £30,000
• Gross yield: 6.5%
• Ongoing operational costs (approx. 20%): £6,000
• Net rental income £24,000 
• Net yield: 5.2%

Exit Costs When the Property is Sold

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1. Exit fee - 1–3% of Sale Value

At the point of property sale, a final fee is levied to cover transaction-related efforts. This includes:

• Appointment and coordination of estate agents
• Managing viewings and buyer negotiations 
• Legal oversight of the sale process
• Final calculations, investor reporting and fund distribution

This fee is only charged upon exit and is not applied to rental income or while the property is held. The rate varies based on market conditions and sale complexity; straightforward sales incur lower fees, while challenging sales requiring extensive marketing incur higher fees.

Why Costs May Vary

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All figures listed in this guide represent typical estimates based on historical property deals. The actual amounts may differ depending on the property type, location, legal structure and whether it’s freehold or leasehold.

You’ll always receive a detailed breakdown of fees and projected returns within the offer documents shared before each launch.

In Summary

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We’ve designed our fee structure to be fair, transparent and aligned with the value we deliver. Investing in real estate is more complex than just buying a property. It’s about managing it well, keeping it compliant and exiting at the right time.

At Wahed, we handle all of that on your behalf: from sourcing and structuring the opportunity to managing the property and distributing returns. Importantly, every investment is reviewed and continuously overseen by the Shariyah Review Bureau to ensure it remains fully aligned with Shariah principles throughout its lifecycle.

This means you can invest with confidence knowing that each opportunity is not only professionally managed, but also built on values you can trust.

For any questions or to discuss a specific investment opportunity, feel free to contact our support team at support.ventures@wahed.com.

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Frequently Asked Questions (FAQs)