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mkb   09 November 2023

Equitable mortgage for leasehold property

PROPERTY IS LEASEHOLD; LEASEHOLD RIGHTS IS GIVEN BY "NAGAR NIGAM, REWA, MADHYA PRADESH"..THE LEASE WAS FOR 30 YEARS.AND UNEXPIRED LEASE PERIOD IS 5 YEARS.

AS PER GOVT RULE, LEASE CAN BE RENEWED ONLY AFTER EXPIRY OF EXISTING LEASE PERIOD.

TODAY APPLICANT CAME TO US FOR CREATION OF MORTGAGE FOR SECURING HOUSING LOAN FOR 20 YEARS.

MY QUESTION IS: IS MORTGAGE VALID AFTER EXPIRY OF LEASE PERIOD..

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Learning

 4 Replies

Dr. J C Vashista (Advocate )     09 November 2023

Yes, equitable mortgage can be created with the borrower wherein Nagar Nigam Rewa has to be consenting party.

T. Kalaiselvan, Advocate (Advocate)     09 November 2023

Since there are five more years to get the leasehold renewed by Nagar Nigam, hence the authorities may not be able to give consent or NOC for the proposed mortgage loan which extend beyond the current tenure of the lease agreement.

Therefore the mortgage loan extending beyond the current tenure of the lease agreement may not be legally correct and valid, therefore you may take a prudent decision on this based on the circumstance now and later on

Adv Shailesh Kumar (Principal)     09 November 2023

Mortgage is not valid after expiry of lease period.

Advocate Bhartesh goyal (advocate)     10 November 2023

No, mortgage  beyond the lease period will be invalid so don't  proceed.


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