GNIDA and YEIDA to allow loans against residential property

GREATER NOIDA: A joint Board meeting of the three development Authorities of Gautam Budh Nagar on Thursday has approved collateral mortgage permission against residential plots or flats for Greater Noida and Yamuna Expressway Industrial Development areas. This means owners of property in both areas can take a loan against their residential property. The proposal will now be forwarded to the Uttar Pradesh government for further approval before it can be implemented.

According to officials, this loan could be for educational, medical or any other purpose including setting up an industry. "Till now, the two authorities allowed mortgage permission against property only for home loans. This loan will be available to only those property owners who have completed all allotment formalities and executed their lease deeds," said Deepak Agarwal, Chief Executive Officer (CEO), GNIDA. "Once the state government gives its nod for the proposal, allottees will be able to avail collateral mortgage permission for any kind of loan," he explained.

Feeling the heat from agitated buyers especially in the Greater Noida (west) area, who are not being able to get possession and registration of their flats, the joint Board has further directed the GNIDA to adopt a lenient view for executing sub-lease deeds for group housing units. "In order to ease things out for the cash-strapped builders and consequently the harassed flat owners, GNIDA Authority will start executing sub-lease deeds for flat owners, which equal the amount of money deposited by the developer," Agarwal explained.

According to officials, till now even if the builder had completed a portion of the project that was ready for delivery and possession to the flat buyers, the builder was unable to handover possession since the NOC was not forthcoming from the Noida Authority, in view of pending dues from the builder. "Till now the builders were given an NOC only once they cleared their entire outstanding dues to the Authority. However, from now on permission will be granted to developers on completion of part project, to issue occupancy certificates in order to provide relief to home buyers," he further said. "This will enable the builders to handover possession of the completed flats to the extent of the NOC and would be a great relief to the flat buyers, who in turn will be able to register their properties," he added.

SOURCE: ETRealty.com