Loan on property where land was on lease and has expired
9 months ago
I have an ancestral property that I have inherited post my father's demise. The property was purchased by my great grandfather and I am 4th generation to inherit it. The land on which the property was built on was government lease of 90 years which got expired in 2009. Thereafter, lease extension was not made on it. Tried to get it free hold but government is not ready to do it. Now, the buyer who is willing to but this property wants to take loan on it. Property is in UP state.
My questions are:
1. will any bank give loan on a property which do not have land of it's own?
2. Is there any way out to tackle with expired lease?
Please help
A.Dear client,
It is the sole duty of the buyer to convince the banks to get the loan. The relevant document also has to be procured by him itself
It is the sole duty of the buyer to convince the banks to get the loan. The relevant document also has to be procured by him itself
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A.Dear Sir,
It is for the buyer to convince the private banks to get a loan on such property and if required all necessary documents may be procured by him only.
It is for the buyer to convince the private banks to get a loan on such property and if required all necessary documents may be procured by him only.
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A.Dear Client,
In the case of leasehold property, on the death of the Lessee, his or her legal heir is required to apply for devolution of the leasehold interest in f/o. legal heirs following the standing procedure of the Lessor, i.e, State Govt. In your case, when the terms of the lease expired in 2009, you being the surviving legal heir should apply to the Lessor for an extension of tenure of lease and devolution of leasehold title in favour of legal heirs along with all the required documents/papers. Once your application is processed and approved by the Lessor, a fresh bipartite Deed of Lease extending the tenure of the lease is executed between legal heirs and the Lessor and registered under the Registration Act. On receipt of said Deed of Lease, you are entitled to alienate or transfer its title to other people subject to the approval of the Lessor. So, for any purpose you have to obtain permission or approval of the Lessor in case of leasehold property. In case the Buyer needs a home loan to buy the leasehold property from the present lessee, the lessee has to apply to the Lessor for permission/NOC in favour of the prospective buyer with a certified copy of the registered Agreement to sale executed between the lessee and the buyer. The issue of NOC for the purpose solely depends upon the discretion of the Lessor. On receipt of NOC from the Lessor, Buyer can apply for a home loan from the Bank for buying the property. But before everything, you have to procure an extension of the lease and title ship of leasehold property in f/o. you to transfer its title to another person from the Lessor. You may ask for the detail of the practice and procedure for the purpose from the office of the Lessor for further clarification and steps.
In the case of leasehold property, on the death of the Lessee, his or her legal heir is required to apply for devolution of the leasehold interest in f/o. legal heirs following the standing procedure of the Lessor, i.e, State Govt. In your case, when the terms of the lease expired in 2009, you being the surviving legal heir should apply to the Lessor for an extension of tenure of lease and devolution of leasehold title in favour of legal heirs along with all the required documents/papers. Once your application is processed and approved by the Lessor, a fresh bipartite Deed of Lease extending the tenure of the lease is executed between legal heirs and the Lessor and registered under the Registration Act. On receipt of said Deed of Lease, you are entitled to alienate or transfer its title to other people subject to the approval of the Lessor. So, for any purpose you have to obtain permission or approval of the Lessor in case of leasehold property. In case the Buyer needs a home loan to buy the leasehold property from the present lessee, the lessee has to apply to the Lessor for permission/NOC in favour of the prospective buyer with a certified copy of the registered Agreement to sale executed between the lessee and the buyer. The issue of NOC for the purpose solely depends upon the discretion of the Lessor. On receipt of NOC from the Lessor, Buyer can apply for a home loan from the Bank for buying the property. But before everything, you have to procure an extension of the lease and title ship of leasehold property in f/o. you to transfer its title to another person from the Lessor. You may ask for the detail of the practice and procedure for the purpose from the office of the Lessor for further clarification and steps.
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