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GNIDA and YEIDA to allow loans against residential property

The three development authorities of Gautam Budha Nagar has agreed on collateral mortgage permission against residential plots or flats for Greater Noida and YEIDA areas.

The three development authorities of Gautam Budha Nagar has agreed upon on collateral mortgage permission against residential plots or flats for Greater Noida and Yamuna Expressway Industrial authority. With the effect of this proposal the owners of property in both areas can obtain a loan against property. The proposal will now further be sent to Uttar Pradesh state Government for approval before it can be implemented.

The officials revealed that the loan could be for medical, educational or any other purpose including setting up an industry. Prior to this, two authorities allows mortgage permission against property only for home loans. This loan facility will be available to only those property owners who have completes all formalities of allotment and executed their lease deeds.

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.

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. 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.

Source: Times Of India