Hi,
I am buying a 3BHK flat, which is being rented out to ladies hostel. I might or not continue with the current tenant. I had already paid advance to the owner and applied for bank loan. Bank says they can't treat it as residential property since its been rented out to ladies hostel. I amn't aware if it rented out to ladies hostel they consider it as commercial though I don't have any alliance with current tenant as I don't have ownership rights yet. Property located in residential society and families living out there along with couple of ladies hostels in the same society.
Is it justifiable that bank consider it as commercial property since it being rented out to hostel?
What if, currently family rented out and I got an offer from hostel to rent it out?
It's strange. I would appreciate appropriate response
