{"id":36712,"date":"2025-04-30T14:42:21","date_gmt":"2025-04-30T14:42:21","guid":{"rendered":"https:\/\/daruliftabirmingham.co.uk\/home\/?p=36712"},"modified":"2025-06-12T00:59:43","modified_gmt":"2025-06-12T00:59:43","slug":"islamic-ruling-on-leasehold-property-purchased-with-interest-and-seeking-a-mortgage-for-a-house","status":"publish","type":"post","link":"http:\/\/daruliftabirmingham.co.uk\/home\/islamic-ruling-on-leasehold-property-purchased-with-interest-and-seeking-a-mortgage-for-a-house\/","title":{"rendered":"Islamic Ruling on Leasehold Property Purchased with Interest and Seeking a Mortgage for a House"},"content":{"rendered":"<p style=\"text-align: right;\"><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\"><strong>Fatwa ID: 08033<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\"><strong>Answered by: Maulana Ubaidur Rahman<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\"><strong>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\"><strong>Question:<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">I&#8217;m am living in flat which is a leasehold property. I was given money by my father 14 years ago. I was advised by my family to purchase my flat, so that I could live in it with my husband once he would get his visa and join me. We had planned to sell the flat and buy a house after a few years of living in it. At the time I purchased the flat I was not aware of interest being haram. Had I known that then I would have not purchased the flat and lived in a rental property. The issue I have is that the flat I purchased is on a lease and is not a long term option to live in. And now I&#8217;m stuck and not know what to do as I want to sell my flat and buy a house but as houses are expensive I would have to take out a mortgage. Can you advise me what to do as this is a big burden for me and my husband as we do not know what to do. We cannot live long term in the flat being a leasehold property. As leasehold properties have many issues.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\"><strong>In the name of Allah, the Most Gracious, the Most Merciful<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\"><strong>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\"><strong>Answer:<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Acquiring a property through interest is not permissible. An alternative route should be sought for the purchase of a house which does not involve mortgage as mortgage involves dealing in ribs (interest) which is strictly not permissible.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">In relation to you currently living in a leasehold property which involves interest, at the time of initially purchasing the property you were not aware of the implications regarding interest and therefore it would be permissible\/allowed as you made that action without being aware of these rulings at the time, or consciously choosing to purchase the property with interest payments in mind.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">In terms of seeking to purchase a house, as stated the only way available to you now would be via a conventional mortgage. This involves interest; hence it would be upon you to seek an Islamic mortgage route rather than a conventional mortgage route.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">There are Sharia-accustomed routes as alternatives for engaging in business transactions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">The alternative to interest-based mortgage are;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Murabaha: (cost-plus financing) \u2013 this is paying in instalments to the bank who purchased the property initially, and are reselling back to you at a higher price. This payment will be made manageable by paying in instalments.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Ijara (leasing to own): this is when the bank buys the property or you and leases tit out to you. At the end of the rental period, they provide you with an option to purchase the property. The possession of the property will then transfer to you at the conclusion of this transaction.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Part-Musharaka \u2013 this where you would be acting as shareholders with the bank for the same property. The size of the shareholder of the person who wants to own the property (you) will increase as you make more payments in comparison to the bank. Eventually, you will become owner of the property by becoming main shareholder.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Generally, unless out of dire necessity, acquiring a house through interest is not permissible. This dire necessity through which it will be allowed will only pertain to the amount necessary and nothing beyond, such that it does not become a luxury or an \u2018accessory\u2019.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">You could sell your flat and then rent another property or flat, whilst in the meantime saving up for a more desirable house of your choice. Seeking an alternative to mortgage and impermissible avenues is always the avenue to take. By saving up a substantial amount from the money which you and your husband have, this could contribute towards making a larger down payment. By making a larger down payment you would have less to pay back in terms of the money which you would need to borrow in order to complete the transaction or purchase to own the property.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Having a leasehold property would not offer you the same rights and privileges as owning a freehold property, as in a leasehold property you would not have entire ownership of the property. In a leasehold property, the main issue would be that you would be part of that property for only a set period of time, and the flexibilities and luxuries of owning the land in a freehold property would not be present or applicable in a leasehold property. This is similar to renting a property, as you would not have the entitlement rights of land over the property as the landlord or owner of the flat.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Usama bin Zaid (RA) reported The Prophet (PBUH) as saying, &#8220;Credit involves usury.\u201d In a version he said, &#8220;There is no usury when payment is made on the spot.\u201d [1].<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">In relation to your request for advise, it would be recommended to continue living in the current property which you and your husband both reside in currently. Both you and your husband can save up for a larger property and one which is purchased through a Sharia-compliant route which does not involve mortgage. If in the housing market you do not see any opportunities coming up relatively soon in relation to the time period which you are looking in the housing market, then I would advise to wait a little longer.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">This is due to the fact that houses are always on the market. Seek a sharia-complaint method and route through which you can purchase a house which both you and your husband can comfortably afford and pay for using the halaal methods listed above.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">This would be better than selling the current flat to rent another one, unless the amount received from that sale would significantly boost you along with the income which you and your husband are in receipt of from working; towards the price\/sum of purchasing a new house. Due to houses being expensive, it would be better to wait for the prices to come down as house prices fluctuate in the property market, and a better opportunity will present itself with patience and prayer.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Only Allah (\u0639\u0632 \u0648 \u062c\u0644) knows best.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Written by Maulana Ubaidur Rahman.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">Darul Ifta Birmingham<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0639\u064e\u0646\u0652 \u0623\u064f\u0633\u064e\u0627\u0645\u064e\u0629\u064f \u0628\u0652\u0646\u064f \u0632\u064e\u064a\u0652\u062f\u064d \u0623\u064e\u0646\u064e\u0651 \u0627\u0644\u0646\u064e\u0651\u0628\u0650\u064a\u064e\u0651 \u0635\u064e\u0644\u064e\u0651\u0649 \u0627\u0644\u0644\u064e\u0651\u0647\u064f \u0639\u064e\u0644\u064e\u064a\u0652\u0647\u0650 \u0648\u064e\u0633\u064e\u0644\u064e\u0651\u0645\u064e \u0642\u064e\u0627\u0644\u064e: \u00ab\u0627\u0644\u0631\u0650\u0651\u0628\u064e\u0627 \u0641\u0650\u064a \u0627\u0644\u0646\u064e\u0651\u0633\u0650\u064a\u0626\u064e\u0629\u0650\u00bb . \u0648\u064e\u0641\u0650\u064a \u0631\u0650\u0648\u064e\u0627\u064a\u064e\u0629\u064d \u0642\u064e\u0627\u0644\u064e: \u00ab\u0644\u064e\u0627 \u0631\u0650\u0628\u064b\u0627 \u0641\u0650\u064a\u0645\u064e\u0627 \u0643\u064e\u0627\u0646\u064e \u064a\u062f\u0627 \u0628\u064a\u062f<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0623\u0635\u0648\u0644 \u0627\u0644\u0628\u064a\u0648\u0639 \u0627\u0644\u062a\u064a \u062d\u0631\u0645\u0647\u0627 \u0627\u0644\u0644\u0647 \u0648\u0631\u0633\u0648\u0644\u0647 \u0647\u064a:<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0661 &#8211; \u0623\u0646 \u064a\u0643\u0648\u0646 \u0627\u0644\u0645\u0628\u064a\u0639 \u0645\u062d\u0631\u0645 \u0627\u0644\u0639\u064a\u0646 \u0643\u0627\u0644\u062e\u0645\u0631\u060c \u0648\u0627\u0644\u062e\u0646\u0632\u064a\u0631\u060c \u0648\u0627\u0644\u0623\u0635\u0646\u0627\u0645.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0662 &#8211; \u0623\u0646 \u064a\u0643\u0648\u0646 \u0627\u0644\u0628\u064a\u0639 \u0645\u0646 \u0628\u064a\u0648\u0639 \u0627\u0644\u0631\u0628\u0627.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0663 &#8211; \u0623\u0646 \u064a\u0643\u0648\u0646 \u0627\u0644\u0628\u064a\u0639 \u0645\u0646 \u0628\u064a\u0648\u0639 \u0627\u0644\u063a\u0631\u0631.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0664 &#8211; \u0623\u0646 \u064a\u0634\u062a\u0645\u0644 \u0627\u0644\u0628\u064a\u0639 \u0639\u0644\u0649 \u0634\u0631\u0637 \u064a\u0624\u0648\u0644 \u0625\u0644\u0649 \u0627\u0644\u0631\u0628\u0627\u060c \u0623\u0648 \u0625\u0644\u0649 \u0627\u0644\u063a\u0631\u0631\u060c \u0623\u0648 \u0625\u0644\u064a\u0647\u0645\u0627 \u0645\u0639\u0627\u064b.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0665 &#8211; \u0623\u0646 \u064a\u0643\u0648\u0646 \u0627\u0644\u0634\u0631\u0637 \u0645\u0646\u0627\u0642\u0636\u0627\u064b \u0644\u0645\u0642\u062a\u0636\u0649 \u0627\u0644\u0639\u0642\u062f.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0641\u0647\u0630\u0647 \u0627\u0644\u0623\u0635\u0648\u0644 \u062a\u062c\u0645\u0639 \u0627\u0644\u0628\u064a\u0648\u0639 \u0627\u0644\u0645\u062d\u0631\u0645\u0629.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0627\u0644\u0631\u0628\u0627: \u0647\u0648 \u0627\u0644\u0632\u064a\u0627\u062f\u0629 \u0641\u064a \u0628\u064a\u0639 \u0634\u064a\u0626\u064a\u0646 \u064a\u062c\u0631\u064a \u0641\u064a\u0647\u0645\u0627 \u0627\u0644\u0631\u0628\u0627.<\/span><br \/>\n<span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0627\u0644\u062b\u0627\u0646\u064a: \u0623\u064e\u062e\u0652\u0630\u0647\u0627 \u0628\u063a\u064a\u0631 \u0625\u0630\u0646 \u0627\u0644\u0634\u0627\u0631\u0639 -\u0648\u0625\u0646\u0652 \u0623\u0630\u0646 \u0635\u0627\u062d\u0628\u0647\u0627-\u060c \u0648\u0647\u064a \u0627\u0644\u0639\u0642\u0648\u062f \u0648\u0627\u0644\u0642\u0628\u0648\u0636 \u0627\u0644\u0645\u062d\u0631\u0645\u0629 \u0643\u0627\u0644\u0631\u0628\u0627 \u0648\u0627\u0644\u0645\u064a\u0633\u0631 \u0648\u0646\u062d\u0648\u0647\u0645\u0627.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0648\u0627\u0644\u0648\u0627\u062c\u0628 \u0639\u0644\u0649 \u0645\u0646 \u062d\u0635\u0644\u062a \u0628\u064a\u062f\u0647 \u0647\u0630\u0647 \u0627\u0644\u0623\u0645\u0648\u0627\u0644 \u0631\u062f\u0647\u0627 \u0625\u0644\u0649 \u0623\u0635\u062d\u0627\u0628\u0647\u0627.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0641\u0625\u0646 \u0644\u0645 \u064a\u0639\u0644\u0645 \u0635\u0627\u062d\u0628\u0647\u0627 \u0641\u0625\u062a\u0644\u0627\u0641\u0647\u0627 \u0625\u0636\u0627\u0639\u0629 \u0644\u0647\u0627\u060c \u0648\u0647\u0648 \u0645\u062d\u0631\u0645\u060c \u0648\u062d\u0628\u0633\u0647\u0627 \u0645\u0639 \u0623\u0646\u0647 \u0644\u0627 \u064a\u0631\u062c\u0649 \u0645\u0639\u0631\u0641\u0629 \u0635\u0627\u062d\u0628\u0647\u0627 \u0623\u0634\u062f \u062d\u0631\u0645\u0629 \u0645\u0646 \u0625\u062a\u0644\u0627\u0641\u0647\u0627.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0641\u062a\u0639\u064a\u0646 \u0625\u0646\u0641\u0627\u0642\u0647\u0627 \u0641\u064a \u062c\u0647\u0627\u062a \u0627\u0644\u0628\u0631 \u0648\u0627\u0644\u062e\u064a\u0631 \u0627\u0644\u062a\u064a \u062a\u0646\u0641\u0639 \u0627\u0644\u0646\u0627\u0633\u060c \u0641\u0625\u0646 \u0627\u0644\u0644\u0647 \u062e\u0644\u0642 \u0627\u0644\u062e\u0644\u0642 \u0644\u0639\u0628\u0627\u062f\u062a\u0647\u060c \u0648\u062e\u0644\u0642 \u0627\u0644\u0623\u0645\u0648\u0627\u0644 \u0644\u064a\u0633\u062a\u0639\u064a\u0646\u0648\u0627 \u0628\u0647\u0627 \u0639\u0644\u0649 \u0637\u0627\u0639\u062a\u0647.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u062d\u0643\u0645 \u0627\u0644\u0631\u0628\u0627:<\/span><br \/>\n<span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0627\u0644\u0631\u0628\u0627 \u0645\u0646 \u0643\u0628\u0627\u0626\u0631 \u0627\u0644\u0630\u0646\u0648\u0628\u060c \u0648\u0647\u0648 \u0645\u062d\u0631\u0645 \u0641\u064a \u062c\u0645\u064a\u0639 \u0627\u0644\u0623\u062f\u064a\u0627\u0646 \u0627\u0644\u0633\u0645\u0627\u0648\u064a\u0629\u061b \u0644\u0645\u0627 \u0641\u064a\u0647 \u0645\u0646 \u0639\u0638\u064a\u0645 \u0627\u0644\u0623\u0636\u0631\u0627\u0631\u060c \u0648\u0643\u062b\u064a\u0631 \u0627\u0644\u0623\u062e\u0637\u0627\u0631.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 12pt;\">\u0631\u0628\u0627 \u0627\u0644\u0628\u064a\u0648\u0639: \u0648\u064a\u0633\u0645\u0649 \u0631\u0628\u0627 \u0627\u0644\u0641\u0636\u0644\u060c \u0648\u0642\u062f \u062d\u064f\u0631\u0650\u0651\u0645 \u0633\u062f\u0627\u064b \u0644\u0644\u0630\u0631\u0627\u0626\u0639\u061b \u0644\u0623\u0646\u0647 \u0630\u0631\u064a\u0639\u0629 \u0625\u0644\u0649 \u0631\u0628\u0627 \u0627\u0644\u0646\u0633\u064a\u0626\u0629\u060c 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