By Jeph Ajobaju, Chief Copy Editor
Lagos thrives on the private sector, its biggest employer and contributor to a monthly internally generated revenue of more than N42 billion that pivots the state above peers and makes it the fifth largest economy in Africa.
Financial institutions are concentrated in Lagos and are the backbone of its economy through paying hefty taxes.
Alausa has, therefore, given assurances to financial institutions, including banks, that there will be returns on their investment in mortgages as contained in the proposed amendment of the Lagos State Mortgage and Property Law.
The bill will create accessible and affordable mortgage for 20 million Lagosians to purchase their own homes, according to Toke Benson-Awoyinka, Housing Adviser to Governor Babajide Sanwo-Olu.
She made the announcement at Wheatbaker Hotel, Ikoyi during a roundtable discussion on the incorporation of Foreclosure Law into Mortgage and Property Law, per reporting by Nairametrics.
Benson-Awoyinka said the meeting was initiated both to safeguard the development of the real estate sector and ensure professionalism and global best practices.
According to her, the proposed Mortgage and Property Law will encourage growth in real estate and regulate loans for property.
Her words: “The proposed Mortgage and Property Law seeks to create a conducive environment for an accessible and affordable mortgage for … the 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.
“The proposed amendment bill, when signed into law, will include sale by public auction, voluntary surrender of mortgaged property in lieu of foreclosure, and foreclosure in default of payment of the mortgaged amount.”
Affordable, decent housing
She disclosed that Sanwo-Olu is keen on developing real estate through regulations that would attract local and international investors under the highest level of integrity.
Sanwo-Olu has reaffirmed commitment to ensuring affordable and decent housing for Lagosians and his administration has adopted a multi-dimensional approach to reducing housing deficit to the barest minimum.
State Attorney General and Justice Commissioner, Moyosore Onigbanjo, stressed that mortgage challenges will be eliminated once the law is passed.
With the law amendment, he said, Lagos will provide certainty in the sale of mortgaged property and foreclosure to give confidence to mortgagees that they will realise security pledged without stress if it comes to litigation.
He urged real estate stakeholders to anticipate the law which will address, among others, mortgage equity redemption, foreclosure, and ensure sale of mortgaged property is certain, predictable, investor-friendly, and protect the vulnerable.
Nairametrics recalls that earlier this month, the state government moved to safeguard investment in real estate and ensure its development through incorporating the Foreclosure Clause into the Mortgage and Property Law.
This is part of measures to attract both local and foreign investors as well as ensure the highest level of integrity in the housing sector.