Leasing a mortgaged Property
Swarna
(Querist) 12 November 2009
This query is : Resolved
Please advise if a mortgaged property can be taken on lease and if yes, what are the safeguards to be taken.
Swarna
(Querist) 13 November 2009
Sir,
This is different. If you carefully revisit my earlier query, it requests a clarification if a lessee can mortgage his interest in the lease.
Whereas, here, I am trying to understand the safeguards required to be taken when taking a property on lease if the property has already been mortgaged by the owner.
To my knowledge, the owner has to obtain a no objection certificate from the banker, FI to which the property has been mortgaged, in order to be able to lease the property. In case there are any additional requirements, please highlight.
Regards,
Swarna
Y V Vishweshwar Rao
(Expert) 13 November 2009
The Proeprty is mortgaged with out possession to Bank/FI - Every property is expected to genrate some income . The Bank/FI will accpet to that extent for a lease for a reasonable period of 2 /3 years - provide that the Bank /FI by agreement not prohibted the Lease of Mortgaged property
If the lease is for a perido of more than 5/10/12 years, it is required to be informed to the Bank /FI/ Mortgagee for their consent . In general there is no prohibition for lease of the Mortgaged proerty (with out Possession)
