Bala (NA) 28 January 2012

Getting approval for building & land for the unapproved bldg

Dear Experts,

one of my friend is interested in buying his grandfather property at chennai through bank loan.

Whereas the property is 40+years old, at that time they didnt get approval for land as well as for the building. (Ground floor is 40 years old and first floor is 15 years old)

Could you please tell us the procedure for getting approval for building and land, what could be the cost involved for approval and approximate time taken for the approval.

Can he get bank loan for the unapproved property? or he need to get approval before buying through bank loan?

Thanks in Advance for you time and suggestions.

Regards

Bala

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ABHIJEET PARIKH (Bcom LLB MBA) 28 January 2012

Well !! Mr Bala

I can explain in general

It can taken from your above query that u want to buy that land n later develop it

For this if the lands chain of document are clear which in turn means the title is also clear Bank Can give loan if the Title of the documents

With regards to development of the said property it is different It is called Project Finance U have to prepare a feasible project report by including plans of structure that u gonna develop for which u have to get ur plans sanctioned from ur local municipal authority under this report u shud also clearly mention as to when the cash flow will start to generate u have prepare estimate of expenses also

If ur plans not sanctioned or approved banks will not give project finance