jayantha 05 November 2020

lessee loan

Borrowing
The Lessee shall be entitled to take loans and financial facilities for putting up the constructions on the Demised Premises against the security of the warehouse constructed therein or mortgage, assign, transfer the leasehold rights granted to the Lessee under this Deed to any third party or finical institution in order to raise appropriate funds. The Lessee shall be liable to discharge all such debts and the Lessee shall clear such debts before the expiry of the Lease period. It is further agreed that any encumbrances, charges or mortgage created on the schedule property structures constructed by the Lessee in whole or any part thereof or the super structure created by the Lessee cannot extend beyond the period of the Lease and shall not bind the Lessors and the Lessors shall not be liable thereof.

From the above paragraph
Can a lessee avail loan or mortgage facility against schedule property?
please suggest me

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7 Replies

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 05 November 2020

1. YES .... based on the same, Loan /Mortgage is possible, PROVIDED the Lessors written consent is obtained on the loan /mortgage documents. This is irrespective of the clauses of the Deed.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

jayantha 06 November 2020

Thank you very much for your suggestion sir,
what if lessor has not given any consent or noc to take loans?
does banks give loans by commission?
Any point to be added in above paragraph that lessee only takes loans against warehouse but not on property?
Reply me sir

P. Venu (Advocate) 06 November 2020

What are the facts? What is the context?

jayantha 06 November 2020

I am giving my land for lease
lessee is telling that he don't make loan on property but he will do on warehouse
I am lessor I gave permission to make loan on warehouse structures and not on property
is it possible from above paragraph?

G.L.N. Prasad (Retired employee.) 06 November 2020

You are bothered about your land and once the financier looks into Lease agreement, you are absolved from all such liabilities. It is the financier to take care of the borrower's repayment capacity. Depending on collaterals, and income generation projections, it is the financier's responsibility to take care of his interest. Those who are using rented premises also avail loans. .

Dr J C Vashista (Advocate) 08 November 2020

Any financier shall not extend any loan facility to the lessee in the absence of written consent of lessor.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 08 November 2020

Originally posted by : jayantha
	I am giving my land for leaselessee is telling that he don't make loan on property but he will do on warehouseI am lessor I gave permission to make loan on warehouse structures and not on propertyis it possible from above paragraph?