Mayank (Director) 09 July 2014

Loan against perpetual leased property

Hello Sir,

I needed an expert opinion on whether the perpetually leased property that I have from the Government of U.P can be used to get loan from a bank. The legal advisor of the bank is of the opinion that since it is not registered to me, the bank cannot sell the property if needed to repay the loan.

If you have any knowledge on the issue, kindly advice.

Thanks

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3 Replies

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING) 09 July 2014

Bank will not risk to accept property in mortgage against financing loan which is leasehold primarily bec�use it is in name of U.P.government. You may convince bank by giving Promissory Note and Undertaking to repay loan before leasehold tenure. Adv. JEEVAN