A lease as security for loan ?
Adv.R.P.Chugh
(Querist) 12 June 2012
This query is : Resolved
Dear Seniors,
Again I look for your kind advise on the following issue :-
My Client desires to extend an X loan to a friend, who has no security to give except a 5 year registered lease he has in his favour, he wants the 5 year registered lease (premium of 10 lacs refundable deposit already paid up front by the person seeking loan).
1. Now under what arrangment can this lease be made security for the loan that we are extending ?
2. Is Mortgage possible ? S. 58 of TPA says that a person can make "interest" in immoveable property security for a loan or debt ? Does this neccessarily refer to complete and absolute interest or a limited interest in the form of a tenancy can also be mortgaged ?
3. Is the concurrence of lessor to this man necessary ? I am asking this because assignment of lease is a ground for eviction ?
I'd be highly obliged if experts could guide.
Devajyoti Barman
(Expert) 13 June 2012
The lase being transfer of interest in the property, the lessee has right to mortgage his leasehold right in the property.
Concurrence of lessor is not necessary unless there is something contrary in the lease deed.
malipeddi jaggarao
(Expert) 13 June 2012
But in which way the loan secured though the loanee can mortgage the leasehold property.
Shonee Kapoor
(Expert) 19 June 2012
It can be done as advised by Ld. Barman. The interest for upto 5 years would be transferred.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
