In Dubai, the typical practice for property mortgages involves mortgaging the entire property rather than just a portion. However, there are specific scenarios and legal frameworks under which portions of a property might be considered for a mortgage.

Here’s a detailed explanation:

1. Standard Mortgage Practice:

• Entire Property: When you apply for a mortgage in Dubai, it is standard practice for the lender to take a mortgage on the entire property. This means that the full property is used as collateral for the loan, securing the lender’s interest in the event of default.
  
  

2. Partial Mortgage or Shared Ownership:

• Co-Ownership: If the property is co-owned by multiple parties, each owner’s share can be mortgaged separately, provided the ownership structure allows it and the lender agrees. For example, if two individuals own a property equally, one party may mortgage their 50% share with the consent of the other owner and the lender.
  
  

• Developer Agreements: In some cases, developers might offer financing options where only a portion of the property’s value is mortgaged, particularly in off-plan sales. However, this is less common and typically tied to specific promotional offers.
  
  

3. Legal and Regulatory Considerations:

• Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA): The DLD and RERA govern property transactions and mortgages in Dubai. Any agreement to mortgage a portion of a property must comply with their regulations. It’s essential to consult with a legal advisor or a qualified real estate professional to understand the feasibility and implications of such arrangements.
  
  

• Bank Policies: Different banks in Dubai may have varying policies on whether they allow partial mortgages. It is crucial to check with the specific lender to see if they offer this option and under what conditions.
  
  

4. Challenges and Limitations:

• Valuation Issues: Mortgaging only a portion of a property can lead to complications in property valuation, especially when determining the exact value of the portion being mortgaged.
  
  

• Resale Complications: If only a part of the property is mortgaged, it might complicate future resale or refinancing, as the property’s title could be encumbered by different mortgage agreements.
  
  

Conclusion:

While the norm in Dubai is to mortgage the entire property, there are circumstances where a portion of a property could be mortgaged, particularly in cases of co-ownership. However, this is subject to the approval of the lender and compliance with Dubai’s real estate regulations. Prospective buyers or property owners considering this option should seek professional advice to navigate the legal and financial complexities involved.

Sources:

• Dubai Land Department (DLD)

• Real Estate Regulatory Agency (RERA)

• Local banking institutions in Dubai