Avail home loan on a land owned by father
Venkatasubramanian.K.
(Querist) 31 January 2014
This query is : Resolved
Sir,
Pl advise on the following :
land owned by my father-purchased by him not a family property. He is 79 years old & not an I T Assessee.
Now my self & brother (sons) want to construct a house for our own purpose on the land & whether we can avail Home loan from Bank? What are all the legal requirements ?
Pl advise. Thanks
K Venkatasubramanian
Devajyoti Barman
(Expert) 31 January 2014
Since you are not the owners of the plot , the bank may not grant loan.
Ask your father to execute family settlement in respect of the land in your favour on which both of you can apply for loan.
Guest
(Expert) 31 January 2014
No chance of getting loan without the land being in your name.
Guest
(Expert) 01 February 2014
Your father could even execute a POA either Registered or Unregistered to all the aspects.Even Builders avail Loan with out the property on their names where as in this case you are his heirs.No question of NO Chance you are eligible and confirm with the bank their requirements and proceed
Sudhir Kumar, Advocate
(Expert) 01 February 2014
It is you who have the capacity to re-pay but no right to mortgage the land.
It is your father who has right to mortgage but no capacity to pay.
Rajendra K Goyal
(Expert) 01 February 2014
All the three jointly (your father, you and your brother) can avail the loan provided other requirements are fulfilled.
After repayment of the loan the property would belong to your father.
Alternately your father may gift the land to you and your brother or can enter into a family settlement. Gift deed would be better as it would make available with you the mortgageable title documents with you.
ajay sethi
(Expert) 01 February 2014
since your father is absolute owner of property bank wouldbe reluctant to sanction you loan for said property .your father can execute gift deed in your favour or execute power of attorney in your favour authrosing you to sell , mortgage , cretae third party rights in respect of said property
R.K Nanda
(Expert) 01 February 2014
NOTHING TO ADD MORE.
Raj Kumar Makkad
(Expert) 01 February 2014
I do agree with the experts hence no more to add.
malipeddi jaggarao
(Expert) 01 February 2014
NOrmally banks will not grant individual housing loans to a third party, though he is the POA holder.
Since your father is at 79, banks will be reluctant to sanction even joint loan because of the age factor of your father.
Who are all the legal heirs of the property?
Only two of you, or any other siblings?
What about the right of your mother on the property?
First of all, a family settlment deed taking the interests of all concerned including your mother should be prepared and executed passing the title to the persons who are elgible to get the home loan (like income factor, age factor etc). I do not advise you to get a gift deed solely in your names leaving your mother. Her interest is to be also protected.
Venkatasubramanian.K.
(Querist) 01 February 2014
Dear All,
Thanks a lot for the valuable reply. I have already approached HDFC Bank they have informed to register the land in our name.
Now we will approach Nationaised Bank like SBI / IOB and also share the valuable input u all given and decide accordingly.
Once Loan sanction, we will inform
Thanking u all once again.
K Venkatasubramanian / 97908 26985
Guest
(Expert) 01 February 2014
Of course, clear title of land in the name of the applicant is necessary for the purpose of home loan.
T. Kalaiselvan, Advocate
(Expert) 03 February 2014
I agree that the banks will grant loan based on the clear title only, so it is better to arrange for transferring the title on the applicants' names to avail loan.
R.V.RAO
(Expert) 04 March 2014
agree with all experts,the issues pointed by sri ajay sethiji and sri jaggaraoji are of interest from home loan lender and borrower angle.
