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Real Estate basics

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How Wahed Real Estate (Really) Works

Wahed 101

8 Reasons Why You Should Invest in Real Estate with Wahed

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Onboarding

How to Create an Account with Wahed Real Estate

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Onboarding

How to Complete Your Real Estate Onboarding

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Onboarding

How to Complete the Appropriateness Questionnaire

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Onboarding

How to Consent to Marketing (and Why it Matters for Real Estate Investors)

Ali Ahmed

Real Estate Acquisitions

Safdar Alam

Director of Wahed Ventures

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Webinar

7th August 2025

Introduction to Wahed Real Estate:

Real Estate without Debt

An overview of fractional real estate investing with Wahed, focusing on our 0 debt, equity-based model. The session walked through the full investment journey from onboarding to property selection, with a live example of how to review deals in the app, followed by a Q&A.

Real Estate basics

A Muslim’s Guide to Halal Real Estate Investing

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Glossary

Legal Title

The registered ownership of a property as recorded at HM Land Registry. On completion, the SPV is registered as the legal proprietor.

Glossary

Letter of Intent (LOI)

A short document that records the parties’ intention to proceed on key terms, subject to contract. It is used early in negotiations and is usually not legally binding.

Glossary

Letting Agent

A professional firm that markets the property, finds tenants, conducts referencing, prepares tenancy documents and can manage rent collection and maintenance.

Glossary

Liquidity

Liquidity describes how quickly and easily you can convert an asset into cash without significant price reductions.

Glossary

Long Stop Date

The latest date by which a sale must be completed. If completion has not happened by the long stop date, the parties may be able to terminate under the contract terms.

Glossary

MEES (Minimum Energy Efficiency Standards)

The minimum energy-efficiency standard a rented property must meet, based on its EPC rating. MEES can drive upgrade works and affect letting plans.

Glossary

Maintenance

Routine upkeep to keep the property in good condition, such as repainting, servicing appliances or minor repairs.

Glossary

Management Fee

The fee paid for running the SPV and managing the property, typically covering admin, reporting, rent collection and oversight. It is taken from rental income before dividends.

Glossary

Managing Agent (Property Manager)

The firm appointed to handle lettings and day-to-day management, including tenant onboarding, rent collection and regular maintenance..

Glossary

Market Rent

The rent a property could reasonably achieve on the valuation date under usual lease terms, based on comparable evidence. Often referenced as ERV when set by a valuer.

Glossary

Market Value

The estimated selling price of a property, based on what buyers are willing to pay and what sellers are willing to accept. Used to price deals and assess performance at exit.

Glossary

Memorandum of Sale

An estate agent document that records the agreed price and the parties’ details once an offer is accepted.

Glossary

Mudarabah

A profit-sharing partnership where one party (the investor or Rab-ul-Maal) supplies the funds while the other party (the entrepreneur or Mudarib) manages the investment, with profits shared according to a pre-agreed ratio.

Glossary

Murabaha

Murabaha is an Islamic finance contract where a financing party buys an asset and then sells it to a client at a pre-agreed price plus a profit markup, allowing the client to pay in installments over time without interest.

Glossary

Musharakah

An equity partnership where all partners contribute capital to a joint venture and share both the profits and losses according to a pre-agreed ratio.

Glossary

Net Asset Value (NAV)

Assets minus liabilities of the SPV. NAV per share is NAV divided by the number of shares and is a simple reference point for the share value. Example: assets £510,000, liabilities £10,000 → NAV £500,000. With 100,000 shares, NAV per share = £5.00.

Glossary

Net Operating Income (NOI)

Annual income from the property after operating expenses, before tax and any financing. In our zero-debt model, NOI closely tracks the cash available for dividends and reserves.

Glossary

Net Rent

Rent left after subtracting all operating costs for the period, such as management, service charge, insurance and routine maintenance. For example, if the property rents for £2,000 per month (£24,000 a year) and annual expenses total £6,000, the net rent is £18,000 for the year.

Glossary

Net Yield

The annual percentage return that the investment generates after all expenses are deducted. For example, The property is priced at £300,000. If gross rent is £24,000 a year and expenses are £6,000, net rent is £18,000. Net yield = 18,000 ÷ 300,000 = 6%.

Glossary

Nominal Value (Par Value)

The face value of a share set in the company’s constitution, used for accounting and share issuance. It is different from a share’s market value.

Glossary

Notice Period (Tenancy)

The amount of notice that landlord or tenant must give to end a tenancy, as set by law and the tenancy agreement. Notice rules differ by route to possession and circumstances.

Glossary

Notice to Complete

A formal notice served when one party is ready to complete a purchase and the other delays. It requires completion within a set period under the contract terms.

Glossary

Occupancy Rate

The share of time a property is rented in a period. Example: if the property is occupied for 11 of 12 months, the occupancy rate would be 91.7%. Higher occupancy supports steadier cash flow.

Glossary

Offer period

The window in which investors can subscribe for shares in a deal before the raise closes or reaches its funding target.

Glossary

Onboarding

The process investors complete before investing: create an account, verify your identity (KYC), pass the appropriateness questionnaire and wait 24 hours. Once done, you can invest in real estate.

Glossary

Operating Expense Ratio

Operating expenses divided by gross rent, shown as a percentage. It explains the movement from gross rent to net rent. Example: £6,000 expenses on £24,000 gross rent = 25%.

Glossary

Operating Expenses

The costs of running the property and SPV, such as management fees, service charges, insurance, ground rent, routine maintenance and council tax during voids. Net rent equals gross rent minus these costs.

Glossary

Periodic Tenancy

A rolling tenancy that continues after a fixed term ends, usually month-to-month, until either party gives notice.

Glossary

Planning Permission

Formal consent from the local planning authority to build, extend or change a property’s use. Some works need both planning permission and Building Regulations approval.

Glossary

Portfolio

A collection of property investments held by an investor. Diversifying a portfolio across locations or unit types can help spread risk.

Glossary

Pro Rata

Proportional to the number of shares held. For example, if you own 2% of the shares in an SPV, you’d receive 2% of the net rental income and 2% of the exit proceeds after all costs and fees.

Glossary

PropTech

PropTech covers tech solutions like VR viewings and AI pricing tools to smart-home systems that transform how we buy, sell and manage property with digital tools.

Glossary

Purchase Price

The agreed amount paid to acquire the property, not including any acquisition costs such as SDLT, legal fees, surveys and any buyer’s premium.

Glossary

Qard al-Hasan

An Islamic finance term for an interest-free loan. In a qard al-hasan transaction, the borrower repays the principal amount of the loan without any interest or markup.

Glossary

Quote

A written price offer for a job from a contractor. It states what work will be done, how much it will cost (often fixed for a set period) and any key conditions.

Glossary

REIT (Real Estate Investment Trust)

REITs are publicly traded companies that own and manage income-producing properties, distributing most profits as dividends. Investing in REITs gives you liquid exposure to real estate.

Glossary

RICS (Royal Institution of Chartered Surveyors)

The UK professional body for surveyors and valuers. A RICS valuer provides independent valuations used for purchase or review.

Glossary

Refurbishment

Works that improve or upgrade a property beyond routine repairs (for example, a new kitchen or bathroom). Refurbishment is capex and can affect rent and value.

Glossary

Rent Review

A change to the rent during or at the end of a term, as allowed by the tenancy agreement or law. In standard ASTs this usually happens by agreement or a statutory notice.

Glossary

Rental Guarantee Agreement

A contract where the developer, seller or a third party guarantees the SPV will receive a set level of rent for a defined period, topping up any shortfall or covering voids up to the agreed amount.

Glossary

Rental Yield

Rental yield shows the income return on a property, calculated by dividing annual rent by the purchase price and expressing it as a percentage. It gives a quick snapshot of how much cash flow you can expect before expenses.

Glossary

Repairs

Routine fixes to keep a property in working order, such as replacing a faulty tap or repainting scuffed walls.

Glossary

Reserve Fund

Cash set aside from rental income for future costs, such as major repairs or short voids. Building reserves can smooth dividends.

Glossary

Return of Capital

The repayment of your original investment amount, typically at exit when the property is sold and proceeds are distributed.

Glossary

Return on Investment (ROI)

How much you actually earn on your investment overall. It’s shown as a percentage: ROI = total profit ÷ amount invested (where profit is net rent received plus any net gain at sale). Example: if you invest £1,000 and get £1,300 back in total → profit £300 → ROI 30%.

Glossary

Riba (Interest)

An Arabic word with literal meanings of “increase” or “excess” and is roughly translated as usury or interest. Any form of riba is strictly prohibited under Shariah law.

Glossary

SPV (Special Purpose Vehicle)

A dedicated company set up to own a specific property. Investors buy shares in the SPV rather than the property itself, and their shareholding sets what they receive from rent (as dividends) and from the sale at exit.

Glossary

Sale Price

The amount the property sells for at exit. It is used to calculate capital appreciation and exit proceeds.

Glossary

Searches (Conveyancing Searches)

Legal checks carried out before purchase, typically local authority, water and drainage and environmental searches. Results can affect pricing, insurance and timing.

Glossary

Secondary Market

A facility to sell or buy shares after the initial raise. If there is no secondary market, investors usually hold shares until exit.

Glossary

Sensitivity Analysis

Testing how returns change when key inputs move, for example lower rent, higher expenses or a different exit price. It helps investors understand best-, base- and downside cases.

Glossary

Service Charge

Payments for the upkeep of shared parts and services in a block or estate, for example cleaning, insurance and maintenance. For leasehold flats, the SPV pays the service charge as an operating cost.

Glossary

Shariah Certificate

A document confirming that a product or structure complies with Shariah after review by qualified scholars.

Glossary

Shariah Supervisory Board (SSB)

An independent panel of qualified Shariah scholars that reviews products, contracts and governance frameworks for compliance with Shariah principles. They define screening criteria, approve permissible structures and provide continuous oversight.

Glossary

Shariah-Compliant

An investment structured in accordance with Islamic law, following permitted principles and avoiding prohibited elements such as interest and gambling.

Glossary

Single Let

A tenancy of the whole property to one household under a single agreement. Council tax is usually paid by the tenant in a standard single let.

Glossary

Stamp Duty Land Tax (SDLT)

A tax payable when buying property in England and Northern Ireland. The SPV pays SDLT on purchase; rates and bands depend on the transaction and are set by HMRC.

Glossary

Subletting

When a tenant rents the whole home or a room to someone else. In most ASTs this is not allowed without the landlord’s prior written consent.

Glossary

Survey

An independent inspection of a property’s condition by a qualified surveyor. It checks structure, damp, roof, windows and services and flags defects or urgent repairs. The report informs pricing, maintenance planning and insurance.

Glossary

Takaful (Islamic insurance)

A cooperative form of insurance designed to comply with Shariah, where participants share risk and any surplus. Used conceptually as the ethical alternative to conventional insurance.

Glossary

Target Dividend

The platform’s expected annual cash distribution from net rent. It is a projection, not a guarantee, and can change with occupancy and costs.

Glossary

Target Exit Date

The planned date to sell the property and distribute proceeds. Actual timing can vary with market and asset conditions.

Glossary

Target Net Yield

The projected net yield at acquisition, calculated as annual net rent ÷ total acquisition cost, shown as a percentage. It is an estimate based on underwriting.

Glossary

Tenancy Agreement

The contract between landlord and tenant that sets rent, term and obligations. For most residential lets in England, this is an AST.

Glossary

Tenancy Deposit

Money held as security against damage or unpaid rent. In England and Wales, deposits must be protected in an approved scheme and returned at the end of the tenancy minus agreed deductions.

Glossary

Tenant

A tenant is someone who rents and occupies a property under the terms of a lease or tenancy agreement. Tenants have rights to a safe, habitable home and must pay rent on time, while respecting any rules set out in their lease.

Glossary

Tenant Referencing

Tenant referencing involves checking a prospective tenant’s income, credit history, and rental background to assess reliability. Agents must handle personal data in compliance with GDPR.

Glossary

Term (Tenancy Term)

The length of the tenancy. Often six to twelve months fixed, then periodic unless renewed.

Glossary

Term Sheet

A short document that records the key commercial terms of a proposed transaction or partnership before final contracts are drafted.

Glossary

Title Deeds

Title deeds are the documents that prove your legal ownership of a property and outline any rights or restrictions affecting it. They are registered at the Land Registry and form the basis of your conveyancing.

Glossary

Title Register

HM Land Registry’s official record of ownership and rights affecting a property.

Glossary

Total Return

How much you earn overall on your investment over the whole holding period. It adds up every rental distribution paid to you during the hold (for example, quarterly over five years) plus your share of the net sale proceeds at exit. Expressed as a percentage: total return (%) = (total value − amount invested) ÷ amount invested.

Glossary

Transaction Costs

The costs of entering and exiting a deal. Buying costs include SDLT, legal fees, surveys and any buyer’s premium; selling costs include agent and legal fees.

Glossary

Transfer of Shares

Moving shares from one holder to another, recorded in the company’s register and subject to any restrictions in the SPV’s articles.

Glossary

Under Offer

An estate-agency status meaning the seller has accepted an offer subject to contract. The sale is not binding until exchange.

Glossary

Underwriting

The analysis used to judge a deal’s viability and set assumptions for rent, costs, voids, capex and exit price. Underwriting produces targets such as net yield, dividend range and total return, plus sensitivities.

Glossary

Unencumbered

A property with no mortgage, charge or lien registered against it. In our model, assets are acquired unencumbered and held with zero debt.

Glossary

Unexpired Lease Term

The years left on a long lease (for example, 118 years remaining). Shorter remaining terms can reduce value and increase future costs, so this is reviewed during due diligence.

Glossary

Utilities

Essential services such as gas, electricity, water and broadband. In a standard single-let, tenants usually pay; the SPV covers utilities during voids or where contracts require it (for example, some HMOs).

Glossary

Vacancy / Void Period

A void period is the time when a rental property is unoccupied and generating no income because tenants have moved out or before new tenants move in.

Glossary

Valuation (RICS Valuation)

An independent assessment of market value by a qualified valuer to professional standards. Used to price acquisitions and to check value at review or exit.

Glossary

Valuation Report

The written report from the valuer that sets out the method, comparable evidence, assumptions and the concluded market value.

Glossary

Value Uplift

The increase in value created by improvements, lease changes or planning gains, over and above normal market movement.

Glossary

Vendor

The seller of the property.

Glossary

Vendor’s Solicitor

The law firm acting on behalf of the seller in the transaction.

Glossary

Verification of Identity (VOI)

Checks a conveyancer carries out to confirm a party’s identity before a property transfer.

Glossary

Void Allowance

A budget assumption for expected vacancy.

Glossary

Waitlist

A list you join to be first notified when a new deal launches so you can invest as soon as it goes live.

Glossary

Walkthrough

A final inspection to confirm the property’s condition, fixtures and any agreed works before completion or tenant move-in.

Glossary

Warranty (Structural / New-Build)

A builder or insurer guarantee that covers major structural defects for a set period (often 10 years). Useful for managing build risk and future capex.

Glossary

Wear and Tear

Normal deterioration from everyday use, not tenant damage. Deposits cannot be deducted for fair wear and tear.

Glossary

White Goods

Large household appliances provided with a rental (for example, fridge-freezer, washing machine). Listed in the inventory for handover and deposit purposes.

Glossary

Winding Up (SPV Closure)

Closing the SPV after the property is sold and proceeds are distributed. Includes final accounts, paying any liabilities, and striking off the company.

Glossary

Working Capital

Cash kept in the SPV to cover day-to-day costs and timing gaps (for example, small repairs or brief voids). Separate from long-term reserves for major works.

Glossary