Mortgage of a Leasehold Property
Soma
(Querist) 28 November 2010
This query is : Resolved
A shop was taken on lease for 30 years by a registered lease deed. There is a clause in the lease deed that the lessee can mortgage the shop.
Now my question is whether a lessee in a 30 yr lease can mortgage the property?
R.Ramachandran
(Expert) 28 November 2010
Dear Soma,
You say that there is a clause in the original lease deed that the lessee can mortgage the shop. When such a permissive clause is there in the main lease deed, why can't the lessee mortgage the shop? He can mortgage the shop on the strength of such clause, provided the mortgagee agrees.
Advocate. Arunagiri
(Expert) 29 November 2010
As the lease deed is for a specific years, the clause allowing him to mortgage, can not be executed. At the end of the 30 years the lease will terminate and the rights will also go. Mortgage cannot recover the money from the owner of the shop. Practically the mortgage can not be done.
a.manoharan
(Expert) 29 November 2010
the mortgage deed can executed by both which will prevent the owner to escape from his liability after 30 years or within the limitation period as per law
