Review Mortgage Laws To Reduce Housing Shortage – Tayo Sonuga

A frontline real estate developer, Tayo Sonuga has called on the Lagos State Government to review current laws on mortgages, to help reduce the rate of housing shortage among the working population in the state.

Sonuga who is the Managing Director of Haven Homes while speaking during a courtesy call on the state’s Attorney-General and Commissioner for justice, Ade Ipaye, commended the state government for its commitment to encouraging home ownership among the working class but noted that mortgages remain the most practical way for them to own their homes easily.

In his submission, Sonuga explained that the main hurdle against mortgage scheme from his own perspective as a developer is legal and not financial. according to him, developers need legal backing that would guarantee immediate recovery of their properties from defaulting mortgage buyers to be encouraged to sell homes under mortgage arrangements.

He said the current situation where ordinary rent defaulters can retain possession of properties for years, with the their landlords engaging in endless court battles to regain possession is quite worrisome. “What assurance does a developer have, that in the event a buyer defaults in payment, there would be a law backing his immediate recovery of the property to enable him resell and recover his investment?” he wondered.

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Sonuga said that with the right provisions in the laws governing mortgages, developers could come up with arrangements with better payments terms and interest rates for buyers than the banks currently do. “Our mortgage and recovery laws need to be reviewed to assure would-be property investors, and banks too. This would go a long way in making mortgages available to buyers”, he affirmed.

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