Your questions: Loans | You can only transfer the loan after you transfer the asset

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By Chaitali Dutta

I have to pay EMI on a home loan for another eight years. As I am retiring this year, can I transfer the loan to my son so he can pay the EMI?
—Naveen Jha

Transfer of loans is not possible if the asset remains in your name. You can explore two options: you transfer the asset to your son and he gets a loan in his name, which will also transfer the liability to your son. The second option is for there to be a mutual understanding within the family and for your son to transfer the EMI to your account on a monthly basis so that your loan can continue.

Can my father transfer me a mortgage from one bank to another and take out an additional loan on the same property? Can I claim the additional amount for tax exemptions?
— Ravali Yarlagadda

Your father can transfer the home loan to another bank and, at the same time, apply for an additional loan from the new bank. Charging is sanctioned if certain parameters are respected. Now to your first question. It is not possible to transfer a loan without transferring ownership of the asset. The first option is for your father to transfer the property to you by a deed of gift, then you will simultaneously apply for a mortgage in your name. The second option is to keep the property and the loan in your father’s name and transfer the funds monthly to his account to help his cash flow. In this case, you will not be entitled to any tax benefit under Sections 80C or 24B.

Can I get a mortgage to build a floor on land owned by my single sister? She wants to give me the rights to the roof.
—Anirudha Deshmukh

The first step would be to check the Allowable Floor Space Index (FSI) in your area. Next, get the certificate of structural stability from a structural engineer/architect. The construction of the first floor will add weight to the structure of the ground floor. Approval of the building plan and layout by your local authorities is a critical step. The bank will require ownership of the property before sanctioning a loan. A deed of partition can be made to divide the property between siblings. Depending on your half-ownership, you can benefit from a mortgage.

The author is the founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your questions to [email protected]

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