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Banking

(Querist) 27 November 2010 This query is : Resolved 
I want to know whether it is possible to create the mortgage of the certified copy of the lease deed. we can register that simple mortgage.
Advocate. Arunagiri (Expert) 27 November 2010
Lease deed - Mortgage - not possible.
adv. rajeev ( rajoo ) (Expert) 27 November 2010
It is not possible.
Khaleel Ahmed (Expert) 27 November 2010
What is the query, who is the owner of the property to mortgage.How could the lessee got the rights of ownership.
Parthasarathi Loganathan (Expert) 27 November 2010
It is permitted in an unique instance. Lease deed is accepted as mortgage as one of the documents to title deeds in case, the property is leased out to a Bank and the latter grants loans against the same property where recovery is effected from the rent receivables (or paid by the bank. This aspect can be checked up with any banks who have extended loans to their landlords. In fact there is are specific schematic lending norms prescribed in many banks.
Kirti Kar Tripathi (Expert) 27 November 2010
no, it is not permissible.
Devajyoti Barman (Expert) 28 November 2010
No
M V Gupta (Expert) 30 November 2010
Lease of immovable property creates a right in the property in favor of the lessee, which, in the absence of any condition to the contrary and / or with the permission of the landlord can be offered as security to banks for loans.Of course banks would not accept short term leases as security for the loan. Long term leases i.e., leases for periods extending to thirty or more years can be considered as security for the bank loans, subject however to the directions of the RBI applicable to such cases.
M V Gupta (Expert) 30 November 2010
In continuation of what I said above, I should clarify that if the mortgage contemplated is that by deposit of title deeds, then the banks would insist for deposit of the original registered lease deed. Where the original lease deed is not lost, a certified copy of the lease deed cannot be accepted for creation of mortgage by deposit of title deeds. A registered simple or english mortgage will have to be executed as per the policy of the bank concerned.


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