Question:
Is a 99 year lease agreement Shari’ah compliant?
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
One of the conditions for the validity of a lease agreement is clearly defining the length of the lease.[1]
The lease agreement may be short-term or long-term spanning more than the life-expectancy of the landlord or tenant.[2] However, a permanent lease agreement is void.[3]
Thus, it is valid to enter into a lease agreement with a 99 year lease period.[4]
And Allah Ta’ālā Knows Best
Mufti Faraz Adam,
www.darulfiqh.com