Q&As

A freehold owner wants to develop commercial units on part of his land. There are offices on the rest of the land with all services and accesses coming from the highway, which do not cross the land that is to be charged. None of the services or accesses to the land to be charged will cross the land already built on and no rights/easements will need to be granted or reserved. Can the landowner charge the part of the land that is to be developed to the bank to fund the development?

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Published on LexisPSL on 16/08/2016

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A freehold owner wants to develop commercial units on part of his land. There are offices on the rest of the land with all services and accesses coming from the highway, which do not cross the land that is to be charged. None of the services or accesses to the land to be charged will cross the land already built on and no rights/easements will need to be granted or reserved. Can the landowner charge the part of the land that is to be developed to the bank to fund the development?
  • Creating a legal charge of part

Charging of part of land often presents an issue for funders. The central concern is whether, on enforcement, the funder would be able to sell off part of the land itself with all necessary easements. It is not possible where land is in common ownership to create any relevant easements in advance. This is because two of the essential characteristics of an easement are that there must be a dominant and servient tenement, and the dominant and servient owners must be different people, see Practice Note: Easements—nature and characteristics.

Where easements are required for the benefit of a part of land to be charged, some funders will accept a draft transfer or easement

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