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Mortgages and Other Charges Registered Against Land

By: Louise Smith, barrister - Updated: 13 Nov 2018 | comments*Discuss
 
Conveyance Mortgages Charges Land

Any mortgages, or other loans, secured against registered land will appear in the Charges Register section of the Land Register.

First Mortgages

If the land was purchased with a mortgage, or if the property is subsequently re-mortgaged, this will be referred to in the Charges Register.

The purpose of registering a mortgage is to ensure that anybody who deals with the land, either by a conveyance or by granting a further loan secured against the property, will have notice that there is a mortgage which takes priority to subsequent legal interests.

The Charges Register section of the Land Register will give the date of the mortgage, state what is secured by the mortgage (but not the actual amount of money borrowed) and the date on which the mortgage was registered.

The Register will also give the full name and address of the mortgage company. If the mortgage company has an obligation under the terms of the mortgage to provide further advances this may also be mentioned in the Register.

The original mortgage deed, or a copy of it, may be retained by the Land Registry. An application may subsequently be made to obtain an official, certified copy of the mortgage deed. The creation of a first legal mortgage will now result in previously unregistered land being registered with the Land Registry.

Subsequent Charges

If a subsequent loan or second mortgage is secured against the property, this will be entered on the Land Register in the same way as a first mortgage. Again, the Register will give the date of the loan or mortgage, the date of registration and the name and address of the lender.

Sometimes a secured loan may have been taken out before a mortgage – for example, a loan may have been taken out to provide the deposit on the purchase price. It is likely that such a loan will take second place in legal priority to the main mortgage even if it pre-dates the mortgage.

Equitable Charges

A secured loan may sometimes be registered as an equitable charge instead of a legal charge. There are a number of reasons why this might happen. Some of the most likely reasons why an equitable mortgage might be created are:
  • Another lender who already has a loan secured against the property has refused to give permission for a further loan to be secured against the property;
  • There is a defect in the documentation which purported to create a legal charge or mortgage;
  • The borrower does not own a legal estate in the land but only has an equitable interest such as an interest under a trust.
In any of the cases described above the lender will have an equitable charge rather than a legal charge. This will still give the lender rights in respect of the property and may be registered against the property on the Land Register.

A registration entry for an equitable charge will look slightly different to the entry relating to a legal charge.

Charging Orders

If a company or an individual obtains a judgment, in relation to a debt, against the owner of a property or land they may apply for a charging order to secure that judgment. Charging orders are granted in two stages:
  • An interim charging order is granted, without a court hearing, based on an application made by a judgment creditor;
  • A final order may be made after a hearing if a judge considers it appropriate to do so.
When an interim charging order is obtained, the company or individual in whose favour it is made is entitled to register it against the property. The Land Register will give the name and address of the creditor, state that they have the benefit of an interim charging order and give details of the court which made the order and the date on which it was granted.

The effect of registration is to prevent the owner selling or disposing of the property without paying the judgment debt. Registration takes place before the hearing to prevent the debtor selling the property before the charging order can be registered.

There is no longer any requirement to register the making of a final charging order – the creditor relies on the initial registration as proof that they have a secured debt. The costs of registering the charging order will be paid by the owner of the property if a final charging order is granted. Usually these costs will simply be added to the total debt secured on the property.

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[Add a Comment]
Hi i had a debt in my x husbands name registered on my house After a lot of communication they removed it from the land register but now they are saying that it was an error and they are re applying for it to be put back on I am trying to sell my house and do not have the equity to pay his debt Can they put it back on once it has been removed If so how long would it take? Thank you
HARVEY - 13-Nov-18 @ 4:04 PM
I have come to the end of my mortgage but there is a 38,000 outstanding due to an endowment not paying out, however there are no charges on the land register to suggest I owe this. How do I proceed can they make me pay the money owing when they have made a mistake
Jan - 31-Jul-18 @ 5:33 PM
Kami - Your Question:
I have a property that has a mortgage on it and has a second charge on it but the property is getting sold for a negative equity and the company who’s put the charge on does not exist anymore how do I get it removed

Our Response:
Talk to a solicitor, your mortgage provide and the Land Registry, there may be a simple process to go through.
DIYConveyance - 23-May-18 @ 3:19 PM
I have a property that has a mortgage on it and has a second charge on it but the property is getting sold for a negative equity and the company who’s put the charge on does not exist anymore how do I get it removed
Kami - 23-May-18 @ 12:57 AM
I have a charge on my ex's property which is to be paid out on his death. He as demolished the house. Can he do this?
pril - 20-May-18 @ 1:04 PM
Hello - I am buying a small plot of land for a self build and am trying to avoid expensive legal costs. If I check the land registry for debts against the land, is there anywhere else I need to look? If so, where would that be? It has been suggested the land registry won't have all the debts or any very new debt against the land. Is that true? Thanks foryour help!
Miles - 17-May-18 @ 5:05 PM
Hi I have a legal charge on my Freehold , however I’ve noticed the legal charge is incorrect , as it has my dad down as the borrower & he was only the guarantor ... what is the legal position can I have this charge removed ? Ty for your time
Westy - 27-Apr-18 @ 7:45 PM
Rob - Your Question:
Hi,I own half of my property with my grandmother. My grandmother no longer lives at the property as she has dementia and was sectioned under the mental health act and moved into a residential home. I have Power of Attorney for my Nan as she has lost capacity.I am wanting to take out a secured loan (loan amount £30,000, overall property value £550,000) on my half of the property and will be paying all fees/payments directly from my own bank account. Please advise if this is something I am able to do.Many thanks

Our Response:
This will depend on whether your Nan's part of the property is being scrutinised for care home payments amongst other things. Please seek professional advice as we do not have sufficient details about your case.
DIYConveyance - 9-Apr-18 @ 2:33 PM
Hi, I own half of my property with my grandmother. My grandmother no longer lives at the property as she has dementia and was sectioned under the mental health act and moved into a residential home. I have Power of Attorney for my Nan as she has lost capacity. I am wanting to take out a secured loan (loan amount £30,000, overall property value £550,000) on my half of the property and will be paying all fees/payments directly from my own bank account. Please advise if this is something I am able to do. Many thanks
Rob - 7-Apr-18 @ 11:11 PM
Max - Your Question:
Hi, My parents used inheritance of mine from a relative when I was very young to buy part of their house.I’ve not come to the stage where I’m looking to buy a house through a help to buy scheme, and wondered if this means I’ve legally owned a home before/legally own a home? I’m not on the deeds or mortgage, but apparently have a charge/interest in the house. The finer details no one is sure of as it’s over 20 years ago. If I’m not on the deeds or mortgage, will I legally be a first time buyer going forward?

Our Response:
Check with a mortgage lender, the details of the charge will probably be registered with the Land registry. In shouldn't make any difference going foward, it just means when your parents' property is sold, you will receive some of the proceeds.
DIYConveyance - 27-Mar-18 @ 12:40 PM
Tupu - Your Question:
Hi,We have remortgaged our property and the mortgage deed states that there is a restriction placed on the property in favour of the lender. Is this commonplace? This is the wording on the deed: "you apply to the Chief Land Registrar to enter a restriction on the register to the effect that no disposition of the registered estate by the proprietor of the registered estate is to be registered without written consent signed by the proprietor for the time being of the charge dated ___ in favour of Santander UK Plc referred to in the Charges Register"Many thanks for your help

Our Response:
Yes it's common. Your mortgage lender (Santander) now owns part ofyour property so you can sell or transfer it without their consent.
DIYConveyance - 26-Mar-18 @ 11:24 AM
Hi, My parents used inheritance of mine from a relative when I was very young to buy part of their house. I’ve not come to the stage where I’m looking to buy a house through a help to buy scheme, and wondered if this means I’ve legally owned a home before/legally own a home? I’m not on the deeds or mortgage, but apparently have a charge/interest in the house. The finer details no one is sure of as it’s over 20 years ago. If I’m not on the deeds or mortgage, will I legally be a first time buyer going forward?
Max - 24-Mar-18 @ 7:06 PM
Hi, We have remortgaged our property and the mortgage deed states that there is a restriction placed on the property in favour of the lender. Is this commonplace? This is the wording on the deed: "you apply to the Chief Land Registrar to enter a restriction on the register to the effect that no disposition of the registered estate by the proprietor of the registered estate is to be registered without written consent signed by the proprietor for the time being of the charge dated ___ in favour of Santander UK Plc referred to in the Charges Register" Many thanks for your help
Tupu - 23-Mar-18 @ 4:02 PM
Hi I currently have a charge on my house as a result of entering into an iva. If I rent my house out does the charge show this also?
Beena - 11-Feb-18 @ 7:51 PM
We have sold our house 3 months ago.our solicitor has recently said that a secured loan has not been paid on it.They are also saying we did not declare the secured loan.The question is should our solicitor have picked this up on the land registry search and dealt with the matter.We had 2 secured loans on the property,one was the mortgage which was payed and the second was a personal loan witch is the problem.Any advice would be appreciated.Thank you.
Jas - 7-Feb-18 @ 7:18 AM
Pat - Your Question:
I have a mortgage on a property which I rent out but I live abroad. I am aware that some old debts have now been registered against the property. How do I find out the total amount I would owe upon selling so I can decide if that’s the best route?

Our Response:
You could ask the courts, check you credit file or ask at the Land Registry.
DIYConveyance - 6-Feb-18 @ 2:55 PM
I have a mortgage on a property which I rent out but I live abroad. I am aware that some old debts have now been registered against the property. How do I find out the total amount I would owe upon selling so I can decide if that’s the best route?
Pat - 6-Feb-18 @ 5:20 AM
My original mortgage company was taken over years ago but that company didn't take the charge off the land registry I am trying to sell and need to get this original charge taken off can anyone help me
Gill - 25-Jan-18 @ 5:14 PM
Thanks for speedy reply. Re my original question, is a second charge mortgage the same as a homeowner loan or any other secured loan? Thanks again
Vice - 7-Nov-17 @ 5:12 PM
Vice - Your Question:
I am after some advice - I am looking to consolidate some debt with a secured loan against my property. My father has a charge on the property as he lent me the money to complete the original purchase. I have about £70K equity in the property. Does a 1st charge owner have to notified if looking to secure money against the property? Or will it just be added to the land registry?Thanks

Our Response:
The first charge holder will need to be notified.
DIYConveyance - 3-Nov-17 @ 1:48 PM
I am after some advice - I am looking to consolidate some debt with a secured loan against my property. My father has a charge on the property as he lent me the money to complete the original purchase. I have about £70K equity in the property. Does a 1st charge owner have to notified if looking to secure money against the property? Or will it just be added to the land registry? Thanks
Vice - 2-Nov-17 @ 4:57 PM
Hi I have a charge on my house from a car finance company, I wasn't able to keep up with the payments and returned the car to them but they still wanted the money. Looking at companies house information the company went into administration and since doesn't look like have traded for a number of years. Is there any way of having this charge removed I haven't received any correspondence from them for around 10years and I am now looking to remortgage. Thank you any advice will be gratefully received.
Dazcs - 28-Sep-17 @ 8:50 PM
Concerning registering charging orders against property. One way of registering a charging order is via UN1 to obtain a form K restriction against the Proprietorship Register (B). However, this is merely a requirement to inform the holder of the charge that the property will be sold. Your article states that "The effect of registration (of the charging order) is to prevent the owner selling or disposing of the property without paying the judgment debt." Does this mean that a Notice needs to be entered into the Charges Register (C) via a UN1 and if so how would that be achieved? Thanks in advance for your time.
Simonyglog - 16-Jun-17 @ 12:44 PM
Radders89 - Your Question:
Hi,The conveyancer now wish to correct their mistake and have the charge registered against the property some 13 years later. Can I refuse?

Our Response:
They would have to apply to the courts to do this now.
DIYConveyance - 3-May-17 @ 2:47 PM
Hi, The conveyancer now wish to correct their mistake and have the charge registered against the property some 13 years later. Can I refuse?
Radders89 - 3-May-17 @ 12:51 PM
radders89 - Your Question:
I purchased my first flat in 2004 with the assistance of a 13% key worker loan. A legal charge for this loan should have been registered by my conveyancer at the time (I have copies of documentation from the key worker scheme to the conveyancer). However, I recently received a letter from the conveyancer informing me that this charge was not registered on the property.Where does this leave me with my current lender, who I assume would not have borrowed me the amount they did if the charge was in place at the time of re-mortgage? Also, how can I ensure that I an not financial out of pocket at the conclusion of this charge being put on the property given that the conveyancer is at fault? Any advice gratefully accepted.

Our Response:
If the legal charge was never registered, surely it is not an issue for you?
DIYConveyance - 3-May-17 @ 11:53 AM
I purchased my first flat in 2004 with the assistance of a 13% key worker loan. A legal charge for this loan should have been registered by my conveyancer at the time (I have copies of documentation from the key worker scheme to the conveyancer). However, I recently received a letter from the conveyancer informing me that this charge was not registered on the property. Where does this leave me with my current lender, who I assume would not have borrowed me the amount they did if the charge was in place at the time of re-mortgage? Also, how can I ensure that I an not financial out of pocket at the conclusion of this charge being put on the property given that the conveyancer is at fault? Any advice gratefully accepted.
radders89 - 2-May-17 @ 6:05 PM
My daughter is buying a house and we have discovered there are numerous charges on it. One has been removed but the others are all with big lenders and they aren't either removing them. The vendors solicitors keep saying they are working on it but my daughter is a cash buyer and wanted a quick move and it's been over 2 months now.How long do we wait. Car
Sue - 14-Apr-17 @ 6:34 PM
Cal - Your Question:
Hi thereI would to register a second charge against a property purchase to secure a private loan for the deposit.The lent deposit is from multiple lenders. Can I register a second charge where they individually rank equal?Thanks

Our Response:
We're not sure about this. You need to check that your first charge lender hasn't put any restrictions on title that would affect a second charge and if so,that all lenders agree to "sharing" the second charge anyway. You should try a registered financial adviser for proper advice.
DIYConveyance - 10-Apr-17 @ 11:54 AM
Hi there I would to register a second charge against a property purchase to secure a private loan for the deposit. The lent deposit is from multiple lenders. Can I register a second charge where they individually rank equal? Thanks
Cal - 7-Apr-17 @ 10:51 AM
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