30 year lease if house is mortgaged ?

[Bobm1]

Is it possible for a landowner to give a 30 year lease on a home that is still under a bank home loan? And if so what happenes to the 30 year lease if the homeowner defaults on the bank loan?

[AyG]

No, it is not. The Land Office won't permit it. The bank wouldn't be too keen either since it devalues the property which the bank would hope to sell in the event of the mortgage payer defaulting.

[trogers]

The chanote is being held by the bank and they would only bring it out on the discharge of the debt.

[blackcab]

It's not possible without the bank's consent (which your are never going to get). The reason is because the person taking the loan agrees to give the property as security against the loan. At this point the bank has to agree anything that would lessen the value of the security or make the security more difficult to dispose in case of a default in repayment.

Clearly, encumbering the property for 30 years to a third party is not in the bank's interest - unless you were talking about a commercial property. In this instance, however, you mentioned a home.