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Property Matter - redevelopment
10 months ago
I have query related to my property going for redevelopment, however I have Mortgage Home Loan against this property which is going for redevelopment.
My Query follows;
1) What would happen to my Loan will it continue since Builder once start Redevelopment by entering into DA
2) Will my Builder ask my original mortgage Flat papers which is in custody of the Bank
3) Do I have to close the loan or it can continue till such time paying EMI there would not be any issue
4) If my Society confirms with Builder on legal ownership and provide NOC will that suffice so that my existing loan continues
5) If any NOC to be provided to Builder from Bank or anyother documents required wherein I can continue my loan while redevelopment happens in parallel.
Request you to clarify on each of above points at the earliest.
A.Dear Client,
When a property is mortgaged against a home loan to the Bank, that property cannot be a subject matter of any agreement or contract, until and unless the Bank issued an order of release on repayment of the entire repayment outstanding loan lying against the borrower. For any purpose, you have to approach the lender Bank for NOC and in the absence of repayment of the loan, they will not give you NOC for any reason whatsoever as Bank got the first charge over the mortgage property. Even, Builder/Developer may not agree to enter into a development agreement in r/o a mortgaged property whose title is now in the hand of the Bank. You may consult with an Advocate for guidance and steps.
When a property is mortgaged against a home loan to the Bank, that property cannot be a subject matter of any agreement or contract, until and unless the Bank issued an order of release on repayment of the entire repayment outstanding loan lying against the borrower. For any purpose, you have to approach the lender Bank for NOC and in the absence of repayment of the loan, they will not give you NOC for any reason whatsoever as Bank got the first charge over the mortgage property. Even, Builder/Developer may not agree to enter into a development agreement in r/o a mortgaged property whose title is now in the hand of the Bank. You may consult with an Advocate for guidance and steps.
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A.Dear client,
Here are some general points to consider regarding a property going for redevelopment and your mortgage home loan. However, it's important to consult with a legal and financial professional to understand the specific details and implications in your situation.
Loan continuation during redevelopment: Typically, when a property undergoes redevelopment, the existing loan on that property continues. However, it's essential to review the terms and conditions of your loan agreement to confirm how redevelopment affects the loan.
Requirement of original flat papers: It's possible that the builder may require the original flat papers as part of the redevelopment process. However, this can vary depending on the specific arrangements and agreements made with the builder. Consult with the builder and your lender to understand the documentation requirements.
Continuing loan payment: In most cases, you can continue paying the loan EMI during the redevelopment process, as long as there are no issues with the loan agreement. Review your loan agreement and discuss with your lender to ensure there won't be any complications.
Society NOC and loan continuation: If your society provides a No Objection Certificate (NOC) to the builder and confirms the legal ownership, it can support the continuation of your existing loan. However, the specific requirements may vary, so consult with your lender to understand if any additional documents or procedures are necessary.
Bank NOC or additional documents: Depending on the lender's policies, they may require a NOC or specific documents from the builder to allow the loan to continue during redevelopment. Contact your bank or financial institution to inquire about their specific requirements.
Each case can have unique circumstances, and the terms and conditions of your loan agreement, as well as the agreements with the builder and the society, will play a significant role in determining how the loan will be affected during the redevelopment process. It's essential to consult with legal and financial professionals who can provide specific guidance based on your situation and the applicable laws and regulations in your jurisdiction.
Here are some general points to consider regarding a property going for redevelopment and your mortgage home loan. However, it's important to consult with a legal and financial professional to understand the specific details and implications in your situation.
Loan continuation during redevelopment: Typically, when a property undergoes redevelopment, the existing loan on that property continues. However, it's essential to review the terms and conditions of your loan agreement to confirm how redevelopment affects the loan.
Requirement of original flat papers: It's possible that the builder may require the original flat papers as part of the redevelopment process. However, this can vary depending on the specific arrangements and agreements made with the builder. Consult with the builder and your lender to understand the documentation requirements.
Continuing loan payment: In most cases, you can continue paying the loan EMI during the redevelopment process, as long as there are no issues with the loan agreement. Review your loan agreement and discuss with your lender to ensure there won't be any complications.
Society NOC and loan continuation: If your society provides a No Objection Certificate (NOC) to the builder and confirms the legal ownership, it can support the continuation of your existing loan. However, the specific requirements may vary, so consult with your lender to understand if any additional documents or procedures are necessary.
Bank NOC or additional documents: Depending on the lender's policies, they may require a NOC or specific documents from the builder to allow the loan to continue during redevelopment. Contact your bank or financial institution to inquire about their specific requirements.
Each case can have unique circumstances, and the terms and conditions of your loan agreement, as well as the agreements with the builder and the society, will play a significant role in determining how the loan will be affected during the redevelopment process. It's essential to consult with legal and financial professionals who can provide specific guidance based on your situation and the applicable laws and regulations in your jurisdiction.
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