Later, charge A is also completed by registration.Subsequently, charge B is completed by registration – at this stage the effect of charge A being noted is that its priority is protected as against charge B (section 29(2)(a)(i) of the Land Registration Act 2002).Notice is entered in the register in respect of charge A.Charge A is created before charge B (so charge A has priority over charge B, as first in time – section 28(1) of the Land Registration Act 2002).The following is an example of when you might want such an entry to be made. If you wish us to make an entry when registering a charge to the effect that the charge has priority over an existing registered charge, you should make clear in the application (ideally in form AP1) that you are seeking such an entry as part of the application. However, this is subject to “an entry in the individual register to the contrary”. Registered charges rank, as between themselves, according to the order in which they are entered in an individual register (section 48(1) of the Land Registration Act 2002 and rule 101 of the Land Registration Rules 2003). You do not need to lodge mortgage documents incorporated by reference in the charge itself (for example, rules of a building society, mortgage conditions, or an agreement for loan). Where a charge is in the lender’s own form of charge, the borrower’s overseas entity ID must be included with the application. You can also find information about this in practice guide 78. Please note that form CH1 was amended on 1 August 2022 by the Land Registration (Amendment) Rules 2022 to require an overseas entity ID to be provided when applying to register a legal charge by an overseas entity. For information about this Act and evidence that must be provided to HM Land Registry, see practice guide 78: overseas entities.
If the charge is by an overseas entity they will have to comply with the requirements in the Economic Crime (Transparency and Enforcement) Act 2022. See Application form AP1 regarding retention of documents submitted with applications certified copy form CH1, or the lender’s own form of charge.Application to register a chargeĪn application to register a charge should contain: We will create computer codes for lenders with approved forms of charge which will ensure that their agreed name and address(es) for service and appropriate restrictions and obligation entries are always entered accurately in the registerįor details of the approval process, please see practice guide 30: approval of mortgage documentation.No separate form CH2 is needed to register an obligation to make further advances that is applied for in the charge.No separate form RX1 is needed to register a standard restriction applied for in the charge.Approval of charges carries the following benefits. Lenders may have all their forms of charge approved by the Commercial Arrangements Section at HM Land Registry Head Office. This form is not prescribed and lenders may use charges tailored to their own particular requirements. IntroductionĪ charge may be made in form CH1 in accordance with rule 103 of the Land Registration Rules 2003. They often deal with complex matters and use legal terms. Please note that HM Land Registry’s practice guides are aimed primarily at solicitors and other conveyancers.
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