Fatwa ID: 08983
Answered by Maulana Iqtidar Ahmed
Question:
We would like a paid service as the inheritance matter we need guidance on is quite complex with following features.
– parental Local Authority home was bought in 2002 in cash with 2 siblings contributing as assistance/loan (£12k and £2k) to family pot, plus the late father contributed, ex-council property on a discounted RTB scheme for just over £20k. Actual value was around £100k. Discount was given on account of parents 18 years tenancy.
– equity loans of £125k was taken out by two siblings 8 years, 2009/2019, for which the title deeds were transferred to these two siblings only, out of 6 siblings – 5 adult sons and 1 daughter.
– our mother is still alive, now living with the eldest son, in a flat of her own. She lived at the family home from 1995 to July 2024.
– One of the two sons who took out equity loan, to buy his own home, using the £75k as deposit, has stopped paying his mortgage payment on the HSBC Amanah bank loan for over one year. The rental income from the parental home is being used to cover his missed payments totalling around £10,000. He also claimed, in 2017, to everyone’s surprise that he is a co-investment partner in the family with our Late Father, a claim that was robustly denied. Later after our father’s death in February 2020, our mother made a will/statement to a solicitor robustly denying his claim, that the property transfer was made to facilitate loans for their deposit to get foot on the property ladder.
– we now need to get a further equity loan (Islamic) to help pay off £180k to our sister’s ex-husband to settle their divorce settlement, and so stop the court forcibly selling her home.
– We would like to follow Islamic Shariah principles and heal family discord by getting guidance from scholars with knowledge in these matters. We would like response to some 12 questions we have, including how inheritance should be distributed in this instance if some of the inheritors take their inheritance by way of payment from the loan in its entirety or partially, along with your advice from a shariah point of view, so that none of us are held accountable for misdeeds before Allah (swt).
– Our case is not unique and I believe exploring this case is likely to assist many other Muslim families in similar predicament.
Jazakamullahu khair
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Thank you for sending through your case, it may be beneficial to set up some time to discuss the details of the case for clarification. However, I will proceed based on what has been provided and the likely situation. Further, please note the below is from a shariah perspective, which differs from legal perspective based on the law of the land.
In the case where, the original home was purchased in 2002 with the title deed being in the names of the mother and the father, in the absence of any other evidence, this results in ownership of the house being purely belonging to the mother and the father, with no ownership belonging to the siblings. If the siblings were partners in 2002, and this opposes the title deed, then they must produce evidence to prove their claim [1].
Title transfer for the purpose of equity loans, without intending true ownership transfer, does not transfer ownership. If in 2017, the one who took the equity loan, and who is now one of the two on the title, claims they are real owners of the house, the ownership transfer must have been with consent of the real owners (i.e. the mother and father) [2]. If in 2020, the mother explicitly denies this, then her statement is considered authoritative in the absence of any opposing evidence. In that case, the house would remain in the ownership of the mother and father as of 2020 (before the father’s passing).
Regarding the loans, firstly, the initial loans of 12k and 2k would be considered only loans for those respective amounts to be paid back by the parents to those respective children, it would be unrelated to the house. Secondly, the equity loans of 125k taken out would be considered for those children who took them out as their own debts to be repaid to the lender from which they took the money, it would not be related to the house ownership or the parents.
If the parents are the rightful owners of the house as of 2020 (before the father’s passing), then any rental income would be owned by them. After the father’s passing in 2020, the father’s assets would need to be divided according to Islamic inheritance law, and the house would usually only form part of the estate.
The usual inheritance distribution for the case is as follows: Mother, Father, 5 sons and 1 daughter. Once the father passes away he leaves Wife, 5 sons and 1 daughter. Wife receives 1/8th of the estate [3], and the remaining 7/8 is split between the 5 sons and 1 daughter where the sons receive double the share of the daughter [4]. So the 7/8 would be split into 11 shares, where each son would get 2 shares and the daughter would get 1. So each son would get 14/88, and the daughter would get 7/88.
To make it simple, split the estate into 88 shares, the mother would get 11 shares, each son would get 14 shares, daughter would get 7.
So as of 2025, based on the information provided, the rental income may possibly need to be split by the inheritors. This depends on how exactly the estate of the deceased father is distributed. If the house is distributed amongst the inheritors with divided ownership, then the rental income would need to be divided in the same proportion. It is important to note that for example the children can choose to gift the house to the mother and relinquish any ownership they may have had within.
If one of the sons is using the rental income of the family home to cover his own payments over the last year (2024-2025), these then become debts owed to the real owners of the home.
As for the further equity loan to help pay 180k, this should be done with the permission of the real owners, whether it may be just the mother, or the mother and other children.
Although, we have attempted to answer the above to the best of our ability, we would advise to consult a local shariah consultancy which specializes in such financial and inheritance cases for the final ruling taking into account local law.
Only Allah ﷻ knows best.
Written by Maulana Iqtidar Ahmed
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
References:
[1] – At-Tirmidhi 1341
عَنْ عَمْرِو بْنِ شُعَيْبٍ، عَنْ أَبِيهِ، عَنْ جَدِّهِ، أَنَّ النَّبِيَّ صلى الله عليه وسلم قَالَ فِي خُطْبَتِه” الْبَيِّنَةُ عَلَى الْمُدَّعِي وَالْيَمِينُ عَلَى الْمُدَّعَى عَلَيْهِ “
[2] – Surah Nisa 4:29
يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا أَمْوَالَكُم بَيْنَكُم بِالْبَاطِلِ إِلَّا أَن تَكُونَ تِجَارَةً عَن تَرَاضٍ مِّنكُمْ
[3] – Surah Nisa 4:12
فإن كان لكم ولد فلهنَّ الثُّمُن ممّا تركتم
[4] – Surah Nisa 4:11
للذَّكرِ مثلُ حظِّ الأُنثيين