HOME FINANCING: Stalled project revived? Now get enhanced loan

financialexpress.com:

If you had booked an under-construction flat sometime in the last decade, you may be one of those unlucky ones who saw their dream house remain a dream as housing projects got stalled due to financial irregularities committed by promoters. With the intervention of Real Estate Regulatory Authority in respective states, some of those projects were revived – with a new developer coming in or the homebuyers association getting the mandate to complete it. However, most of these revival schemes came with a cost escalation. For those who now need to take a loan or have to revive their old loan accounts, this means knocking at the doors of lenders once again.

Change of builder documents

The first step is to ensure that the documents reflect the new realities. Your new builder will draw up a fresh ‘Agreement to Sell’ deed which will not only mention the terms of sale but also the amount of money you had paid to the previous builder, the new cost of your home including escalation, if any, and how much you have to pay now. Do remember that if the total amount to be paid to the new builder is less than Rs 50 lakh, you do not have to deduct TDS, even if the total cost of the flat is above Rs 50 lakh.

Whatever documents are required normally to get a home loan is applicable here too. “In most cases it is either a court order or a change of ownership document that is required, which is available in public domain or provided by the developer to the customer. Most properties are coming through NCLT/courts so one single order suffices the requirement,” says Kaushik Mehta, founder & CEO of Ruloans.

Reassessing loan eligibility

Since you are requesting a higher loan amount on an existing loan, the lender will reassess your eligibility based