Leasing out one’s premises to a bank

Question:-

What is the ruling in regards to the following:

A building is being bought where the bank is a tenant. The bank will stay on as a tenant for 12 more months after the purchase. Is the rent that’s paid for the first 12 months Halaal, and can the income be used? Upon completion of the lease agreement, are you allowed to renew the banks lease or do you have to get a new tenant?

Answer:-

The new landlord should try to terminate the bank’s lease agreement on purchasing the property. If terminating the lease agreement is not possible, then it may be honoured until expiry. However, it should not be renewed thereafter. The income derived in the form of rental (from the bank) should be given out in charity without any intention of reward.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 10 Shabaan 1445 / 21 February 2024