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I have one elder brother. My father has one house worth 30 Lacks.

During property sharing, this house went to my brother.

He is planning to sell that property, but I do not want to sell it to some other person. This is still in the name of my father.

I want to buy that house directly from my father's name to my name by paying this amount to my brother.

I am drawing salary net take home around 1.2 lacks per month. I already am paying one home loan 30,000-00 per month for 30 Lacks loan. After all deductions including my home loan, I am drawing net take home Rs 80,000-00.

In this situation, am I eligible to get home loan for this house as a second home loan around 20 lacks?

  • Hey, welcome! Did some edits and more to the point subject for your question. Feel free to revert if you don't like my edits. I understand you're from India, so I added the location tag accordingly. – littleadv Aug 19 '13 at 7:42
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    For the benefit of readers not familiar with Indglish, one Lack (more commonly transliterated as lac as Dheer has written in his answer or Lakh) is one hundred thousand, that is, the OP's net take-home pay is 0.8 Lakh. – Dilip Sarwate Aug 19 '13 at 11:33
  • Hello, I am working as a Relationship Manager in Delhi and providing loan against property service. So, If you want personal or loan against property, Please let me know – Ajay Sharma Feb 29 '16 at 11:39
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I am not going into the tax implications here. There would be a tax implication to your father / brother depending on how you do the deal. Consult an accountant to structure it correctly.

On the Loan eligibility, you would be eligible for a loan as your number look good. Had you purchased a property from a builder, it would be easier for Bank.

As you are purchasing from your dad and using the money to pay off your brother, Banks in general are not very happy with this kind of deal. They feel it can shoddy and / or lead to legal issues [ie you Brother claiming title later etc]. You would have to talk to quite a few Banks to understand the paperwork required. Here we are talking about Bank lending you money before the property is in your name.

Another relatively easy option is first have the house transferred / registered in you name. Indicate to your brother that you would pay him later [say 3-4 months time]. Once you have the property against your name, you can approach Banks for "Loan against Property". Banks look at this favorably as you already have the title to property assessed at Rs 30 lacs and you need a loan of Rs 20 lacs.

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    In addition to the tax implications, there are legal issues that need to be addressed, the exact nature of which will depend on whether the property in question was purchased by the OP's father or is property inherited from the OP's grandparent, the religion of the OP (most likely Hindu from the name) and whether the older brother has children including adult unmarried daughters etc. Property laws in India are arcane to say the least, and consultation with a lawyer well-versed in property law is of the utmost importance before this deal is undertaken. – Dilip Sarwate Aug 21 '13 at 2:34

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