Mortgage property separation
tanmoy
(Querist) 20 August 2013
This query is : Resolved
Sir/Madam,
I have a small piece of land which is already mortgage in favour of my younger son loan liability to a nationalised bank. Now my elder son has approached me for separation of the said property.
I decided to separate the property and discussed with the bank manager. He told me the property could not be separate if not clear the present debt. I aks him the value of the property is 3 time of the loan amount and the part which i offering my younger son that is higher than the loan limit atleast 1.5time. Which is the process please suggestme to separate the propriety
ajay sethi
(Expert) 20 August 2013
you have already mortgaged the property to bank . only on repayment of loan will bank release the mortgage .
you can make a will bequeathing the property to your 2 sons equally .
dont give your land to your children during your lifetime . it is your security for your old age .
in the alternative request bank to sell of the mortgaged property to clear your younder son loan . keep the balance sale proceeds and invest them wisely .
Rajendra K Goyal
(Expert) 20 August 2013
If you gift 50% of the property now even your son can use this. First lien would remain with the Bank and Bank can dispose of this property any time if loan remains unpaid. Bank will not honor this gift till its loan is paid.
Better advise is suggested by Expert ajay sethi ji.
R.K Nanda
(Expert) 20 August 2013
nothing to add.
