Following the amendment of the Lagos State Mortgage and Property Law, the state is assuring financial institutions of an RoI in mortgages in Lagos.
This was revealed by Special Adviser to the Governor on Housing, Mrs Toke Benson-Awoyinka during a roundtable discussion on the incorporation of Foreclosure Law into the Lagos State Mortgage and Property Law, according to a report shared by PMnewsNigeria
The SP shared that the Lagos State Mortgage and Property Law seeks to encourage growth in Real Estate and regulate consumer loans for property realization in the State; and to create conducive environment for accessible and affordable mortgage for the benefit of people of the State to acquire their own homes by paying a certain percentage of the cost of the unit and paying the balance over a period of years whilst residing in the property.
She said: “The proposed amendment Bill, when signed to Law, will include sale by public auction, voluntary surrender of mortgaged property in lieu of foreclosure, and foreclosure in default of payment of mortgaged amount.”
Benson-Awoyinka stated that the Lagos State Governor, Mr Babajide Sanwo-Olu, is keen to develop the sector through proper laid down regulations that would ensure that local and International investors are attracted, and that the highest level of integrity is maintained in the real estate sector.
She noted that the State Government, in view of the huge housing deficit in the State, adopted multi-dimensional approach to reduce housing deficit to the barest minimum despite the prevailing economy downturn.
Attorney-General General and Commissioner for Justice, Moyosore Onigbanjo, said that once the law is passed, issues concerning mortgages in Lagos State will be a thing of the past.
Onigbanjo said that with the law amendment, the state is now providing certainty in the law regarding sales of mortgage property and foreclosure, in order to give confidence to the mortgagee who has given out his money, that if there is default, he will be able to realise the security pledged without the undue stress when it comes to litigation.
He urged local and international investors in the real estate sector as well as the financial institutions to look out for the passage of the law, noting that once it is passed, the issues concerning mortgages equity of redemption, foreclosure and sale of mortgage property among others, will be more certain, more predictable, more investor friendly and would protect the vulnerable.
“If banks are sure that they will get back their investment in mortgages, then more mortgages will be given, more homes will be purchased, more houses will be built and at the end of the day, it will be a win-win for Lagos State citizens and the finance industry will be better for it.”