Raising a mortgage on a property in India
Posted on 23 November 2016 by B P
I currently will jointly inherit property in India from my father worth about £600000, along with my 2 brothers. After discussions with my 2 brothers and father, one of the options on the table is for my father to gift the house fully to me, and I then raise capital on this to sufficiently gift both my brothers (about £300,000 is agreeable to all of us) in India. Is it feasible to raise funds in UK on an existing fully owned property in India?
It should be possible to arrange funds through one of the Indian Banks with a UK presence. The loan will probably be transacted in India as that is where the property is.
The legal documents will require notorary and be lodged with the FCO to confirm that all interested parties have full knowledge and understanding of the transaction.
You need to think carefully about whether you take a Sterling mortgage or a Rupee mortgage. If you take a Sterling mortgage, then it will be in the same currency as your income and there will be no nasty shocks in the future due to exchange rate fluctuations. Conversely, if you take a Rupee mortgage then it will be in the same currency as the property it is secured on, but you will be subject to currency fluctuations and these can work both for and against you.
I recommend that you take advice from one of the large Indian Banks will offices in the UK and also from an independent lawyer with a sound knowledge and experience of Indian property transactions.
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