What is the ruling on lease-to-own, and is it permissible to frame it as a lease with a condition of donation, and what are the conditions for that and how is it carried out?

This type of ijarah (leasing) includes both permissible and impermissible forms. The International Islamic Fiqh Academy has clarified that the permissible form is a lease contract that enables the lessee to benefit from the leased asset in exchange for a known rent over a known period, and it is accompanied by a contract of hibah (gift) of the asset to the lessee, contingent upon the full payment of the rent. This can be done through an independent contract or a promise of a gift after the rent is paid.

This type of contract is permissible on condition that the two contracts, ijarah and hibah, are separate from each other, and that the ijarah is genuine and not merely a disguise for a sale. Its Shari'ah rulings apply throughout the lease period, and ownership does not transfer to the lessee until the hibah contract is executed. The responsibility for ensuring the asset and the non-operational maintenance costs rest with the lessor.