Leased property can be mort5gaged by lessor for his loan
POOJA
(Querist) 07 February 2015
This query is : Resolved
The partnership firm has given on 30 years lease his firm land and building (under construction) to education society. For this building (i.e. construction and finishing work) firm want to take term loan for which bank is also agreed subject to legal compliance (with regards to mortgage of above property) of his law officer but bank’s want to take guarantee of education society, being society is lessee for 30 years. Same law officer is of opinion that society can only take guarantee for he himself will take term loan and not for loan sanctioned to firm. Kindly advise what so do now?
Pradeep MK
(Expert) 08 February 2015
LESSOR CAN TAKE LOAN AND MORTGAGE THE LAND AND BUILDING TO THE BANK AS THE LESSEE HAS LIMITED INTEREST IN THE SAME.
THE BANK MAY SEEK NO OBJECTION FROM THE LESSEE TO THE EXTENT THAT IN THE EVENT OF DEFAULT IN PAYMENT OF LOAN AMOUNT THE LESSEE WILL PAY THE RENT TO BANK DIRECTLY
PLEASE SEE SECTION 109 OF TRANSFER OF PROPERTY ACT FOR BETTER UNDERSTANDING OF THE ISSUE.
Rajendra K Goyal
(Expert) 08 February 2015
If the conditions of the Bank are not acceptable to the firm, it should negotiate with other Bank for loan.
T. Kalaiselvan, Advocate
(Expert) 09 February 2015
It again depends on the terms and conditions of the lease agreement. If the lease agreement confirms the clause of mortgage by lessee, then the bank may upon the opinion of its own lawyer may decide about the issue.
RAJU O.F.,
(Expert) 09 February 2015
Our advice may not serve the purpose; whatever bank officials decide in such matters are relevant and hence you have to satisfy the bank officials. So any amount of advice on our part is useless; if possible contact the bank's panel lawyer and apprise him.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 09 February 2015
Lessor can mortgage with. Consent to lessee n Agreement n lease Ahreement
