All About Maintenance and Expansion and Addition Loan to an Existing House in Abu Dhabi

• Details for Maintenance, Expansion and Addition Loans
• Documents and Cost
• Steps to Follow
• Loan Service Terms
• Special Conditions
• FAQs

A maintenance loan to an existing house in Abu Dhabi serves the purpose of providing financial assistance to businesses or individuals for the upkeep and improvement of their existing assets or facilities. It also helps them expand operations. Let’s go through the service in detail. 

Details Pertaining to Maintenance and Expansion and Addition Loan to an Existing House

Through this service, individuals can request a loan amounting to a maximum of AED 1,100,000 (one million one hundred thousand dirhams). This amount can be used for the maintenance, expansion, or addition to their current residential property. The loan is repaid through monthly instalments following the guidelines established by ADHA (Abu Dhabi Housing Authority).

As for Expansion and Addition Loan for Existing Houses, with this service, individuals can request a loan of up to AED 750,000 (seven hundred and fifty thousand dirhams). This amount can be used to expand and enhance their current residence. Just like the maintenance loan, this loan is also repaid through monthly instalments following ADHA guidelines. 

Documents and Cost Details 

During the application process, it is mandatory to provide an Emirates ID. The Maintenance and Expansion Loan for Existing Houses service does not incur any charges.

Steps to Follow 

Applying for a maintenance and expansion loan is straightforward:

Step 1: Submit your application along with the necessary documents through the provided channels on the TAMM portal. 

Step 2: Receive a notification via text message and follow the instructions outlined in the message.

Terms of Service

Eligibility criteria for a maintenance loan and/or expansion and addition to an existing house encompass the following general conditions:

• The applicant must be a citizen.
• The applicant must possess full legal capacity.
• Continuous residency in the state is required.
• Neither the applicant nor their spouse should have previously availed themselves of any housing loans or grants from federal or local government entities, except for loans obtained by the wife prior to marriage or in cases of polygamy. Additionally, the applicant must own a house in Abu Dhabi registered under their name, free from any legal constraints on construction or disposal at the time of loan approval.
• The applicant must be an individual unless the co-ownership of the house complies with ADHA’s specified conditions.
• Payment of all instalments related to previous housing loans is mandatory.
• A minimum of ten years must have elapsed from the date of the house’s completion certificate.
• The applicant commits to utilising the loan specifically for maintenance and/or expansion works outlined in the technical report issued by ADHA or its designated entity.
• The necessity for maintenance and/or expansion/addition to the house must be substantiated by a social report from the competent authority. The house must be expandable, addable, habitable and maintenance needs should not result from intentional damage caused by the applicant. Here is a detailed home maintenance checklist.
• Citizens with limited income agree to settle remaining instalments once their financial situation improves, as per ADHA’s regulations.
• Upon request, the applicant must furnish evidence of their ability to cover additional costs exceeding the loan amount provided by ADHA for maintenance and/or expansion works. Assignment or awarding of the works to a consultant is contingent upon obtaining these guarantees.
• The applicant must pledge the entire land owned or granted to them as a first-degree insurance mortgage until the loan is fully repaid. Official registration of the mortgage in accordance with legal provisions is obligatory before activating the loan, with all transactions recorded in the real estate register by the competent authority in Abu Dhabi.

Special Conditions for House Maintenance and Expansion Loan in Abu Dhabi

There are specific conditions based on eligibility categories for individuals seeking an existing house maintenance and/or expansion loan. Let’s go through the details.

Conditions for Males:

• The applicant must be at least twenty-five (25) years old.
• Marriage is not a prerequisite according to the social report issued by the competent authority, and exceptions apply for social or humanitarian cases.

Conditions for Widows:

• The widow must either be the custodian or the primary provider for one or more children, with exceptions for elderly widows or those medically unable to bear children according to a report from the competent authority.
• Non-citizen widows are required to have continuously resided in the state for a minimum of five (5) consecutive years prior to the date of application.

Conditions for Unmarried Female Citizens:

• Unmarried female citizens must be at least 30 years old.
• Marriage is not mandatory according to the social report issued by the competent authority, with exceptions for social or humanitarian cases.
• They must not have a breadwinner, or if the breadwinner is unable to provide a permanent residence due to legal or medical reasons, or if they are supporting relatives up to the second degree.

Conditions for Divorcées:

• Divorcées must be at least 30 years old.
• Marriage is not obligatory according to the social report issued by the competent authority, with exceptions for social or humanitarian cases.
• The divorce must either be irrevocable or at least three years must have elapsed since the divorce if it’s not irrevocable.
• Like widows, they must either be custodians or primary providers for one or more children, with exceptions for elderly divorcées or those medically unable to bear children according to a report from the competent authority.
• Non-citizen divorcées are required to have continuously resided in the state for a minimum of five (5) consecutive years prior to the date of application.

Conditions for Female Citizens Married to Non-citizens:

• Female citizens married to non-citizens must be at least 30 years old.
• Marriage is not obligatory according to the social report issued by the competent authority, with exceptions for social or humanitarian cases.
• They must have one or more children residing with them, with exceptions for elderly widows or those medically unable to bear children according to a report from the competent authority.
• Continuous residency in the state with the husband and children for at least seven (7) consecutive years before the date of application is required.
• The father of the children must be unable to provide suitable housing due to limited income, medical incapacity, insolvency, bankruptcy, residing outside the state, or refusal to provide housing or rent.

FAQS

What is the maximum amount for a maintenance loan to an existing house in Abu Dhabi?

Individuals can request a loan amounting to a maximum of AED 1,100,000 for the maintenance, expansion, or addition to existing houses in Abu Dhabi.

What is the maximum loan amount for expansion and addition loan to existing houses?

Individuals can request a loan of up to AED 750,000 to expand and enhance their existing house.

What is the cost of maintenance and expansion loan service for homes in Abu Dhabi?

The Maintenance & Expansion Loan for Existing Houses service in Abu Dhabi is free of cost. 

There you have all the details pertaining to acquiring a maintenance loan to an existing house in Abu Dhabi in addition to the Expansion and Addition Loan to an Existing House Service. The capital offers many services to ease the process of buying properties in Abu Dhabi. Common examples include the Iskan residential land grant and ADHA loan services.

Besides, if you’re willing to buy property on mortgage, consider these things before securing a mortgage in Abu Dhabi. It is also pertinent to know about how to register and modify a property mortgage contract in Abu Dhabi.

Moreover, those living in Dubai can go through these details about home loans in Dubai.

Stay tuned to dubizzle property blog to explore loan and grant services available in the capital and throughout the UAE.