Why Self - Redevelopment ?

Builders usually get attracted in redevelopment projects as they get to reap profits out of extra inventory once original inventory has been allotted to it’s respective tenants.

However under self-redevelopment additional carpet area can be availed , furthermore the Society at it’s own discretion has the opportunity to construct the elevation as per their needs which certainly includes (Play Area, Indoor Sports, Infiniti Pool etc).

Usually in redevelopment builders take the power of attorney from the society but in self – redevelopment society has its own control over various aspects and crucial decisions.

How to Go About It?

First Phase includes getting Conveyance on the name of the society and an unconditional 100% consent of the members willing to go for self- redevelopment.

Second Phase includes by appointing Project Management Consultants who would initiate the process of construction of the building right from the planning to appointing of Contractors/Engineers, getting approvals from various government departments.

As we are aware Mumbai – District Central Co-operative Bank avails funding of 85% of the project cost and the rest 15% to be either be arranged by the society or they can also take hand – held support from the NBFC by conducting tripartite agreement. As per Mumbai District’s Norms the bank shall English mortgage the society property in which against the 85% Project Cost shall be disbursed.

Benefits

1. · All profits from saleable area go to the society, not the developer.

2. · Extra carpet area of up to 50-60%, compared to 10-15% that builder’s offer.

3. · Since amenities are decided by members, they are expected to be more utilitarian.

4. · New members are selected by existing ones.

5. · All property rights remain with the society as no power of attorney needs to be executed in favour of the developer.