Karta - Mortgage loan

[Asked by Guest]

CAN KARTA OF HUF RESIDENTIAL PROPERTY GET REVERRSE MORTGAGGE LOAN?

[Ravi Chopra]

If the karta of HUF is the owner of the house property, than yes, he can get the reverse mortgage loan.

[Surender Gupta]

I think no. In TMI commentaries you would find the scheme of two banks SBI and National Housing Bank for your kind reference. We have seen the scheme of other banks also. They need the clear title of the property. In case of property of HUF, you do not have the clear title of the property. In addition to this, you can also visit the notification no. 93/2008 - Income Tax which notifies the "reverse mortgage scheme" scheme. Para (3) of the scheme is read as: 3(1) Any eligible person may enter into a reverse mortgage transaction by applying in writing to the approved lending institution, if the capital asset, being mortgaged, is (i) owned by him; and (ii) free from any encumbrances. Therefore, I believe that it is difficult to get the RML on HUF property. However, if you get the HUF transferred in your name, yes you can get RML.

AI Summary

Reverse mortgage eligibility hinges on individual ownership and unencumbered title, making HUF-held property typically ineligible.
Eligibility for a reverse mortgage requires that the mortgaged capital asset be owned by the applicant and free from any encumbrances. If the Karta is the sole registered owner of the residential property, he may obtain a reverse mortgage; if the property is held as HUF property without individual clear title, lenders and the notified scheme treat it as ineligible unless the asset is transferred into the individual applicant's name.