CHEQUE BOOK

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I am in busi­ness but due to slow­down my in­come be­came very less and there was no ques­tion to pay any taxes such as in­come tax. Now I need in­vest­ment to stay in mar­ket but no bank will pro­vide me loan. I need your ad­vice on, if it is fea­si­ble to take loan on my fa­ther’ name who is 85 year old and owns a self­oc­cu­pied home un­der re­verse loan scheme. My mother ex­pired many years back. We all live as sin­gle HUF along with my kids, to­tal five mem­bers, in all. I am sure I will be in po­si­tion to repay all amount in lump sum within few years. I am his only le­gal heir. Look­ing for­ward for your sin­cere ad­vice in all as­pects

—Satin­der Gamb­hir Re­versed mort­gage loans are ex­tended by sched­uled banks and hous­ing fi­nance com­pa­nies reg­is­tered with NHB. The re­verse mort­gage loan is se­cured by way of eq­ui­table mort­gage of res­i­den­tial prop­erty.

Your fa­ther should be the owner of the res­i­den­tial house prop­erty, which is ac­quired by him. He should also be stay­ing in the same house. The res­i­den­tial prop­erty should be free from any en­cum­brances and the resid­ual life of the prop­erty should be at least 20 years.

The loan is pro­vided through monthly/quar­terly/ half-yearly/an­nual dis­burse­ments or a lump sum or as a com­mit­ted line of credit or as a com­bi­na­tion of the three. The max­i­mum lump sum, which your fa­ther can take is re­stricted to 50% of the to­tal el­i­gi­bil­ity amount. The loan can­not be used for the pur­pose of spec­u­la­tion.

The max­i­mum ten­ure of the loan is 20 years or till the demise of the bor­rower. The amount of loan can un­dergo re­vi­sions based on re-val­u­a­tion of prop­erty at the dis­cre­tion of the lender. Your fa­ther can con­tinue to stay in the same res­i­den­tial prop­erty as his pri­mary res­i­dence till he is alive.

If any time dur­ing the loan tenor if you feel you can pre­pay the loan, you can ex­er­cise this op­tion on be­half of your fa­ther. There are no prepayment charges for such pre­pay­ments.

The max­i­mum lump sum pay­ment, which one can take, is re­stricted to R15 lakh for med­i­cal emer­gency in the fam­ily for de­pen­dents only so I am afraid you can­not get the lump sum loan un­der the re­verse mort­gage for your busi­ness.

From where do I can get loan for a 16-year-old flat?

—Ma­hesh Ra­tra You can get a home loan to buy a re­sale prop­erty based on your in­come and the ti­tle of the prop­erty. The age and the con­di­tion of a build­ing has a bear­ing on loan el­i­gi­bil­ity and ten­ure. The banks are nor­mally re­luc­tant to lend money for a prop­erty, which is very old. In your case, as the prop­erty is only 16 years old (and if in a good con­di­tion) there should not be any prob­lem in get­ting a loan from any bank . Nor­mally banks grant loans of up to 80% (90% for loan amount be­low R20 lakh) of the agree­ment value of the prop­erty as a home loan. If your in­come is suf­fi­cient to jus­tify the loan, you should not have any prob­lem in get­ting a loan pro­vided the con­di­tion of the house is good and the val­uer cer­ti­fies the value as well as bal­ance life of the prop­erty as be­ing more than the loan ten­ure. Fre­quently, the val­u­a­tion as de­ter­mined by the banker’s val­uer is sig­nif­i­cantly lower than the ac­tual cost and hence your ef­fec­tive down pay­ment may go up.

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