Q&As

A landowner (A) has agreed with an adjoining landowner (B) to undertake works on the adjoining land. B insists that A gives to him a legal charge over A’s land to secure performance of the obligation to carry out the works. The legal charge is to be released on completion of the works. Do you have a form of legal charge that is appropriate to secure A's obligations?

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Published on LexisPSL on 13/04/2015

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

  • A landowner (A) has agreed with an adjoining landowner (B) to undertake works on the adjoining land. B insists that A gives to him a legal charge over A’s land to secure performance of the obligation to carry out the works. The legal charge is to be released on completion of the works. Do you have a form of legal charge that is appropriate to secure A's obligations?
  • The obligation to build
  • Performance bond
  • Rentcharge
  • Mortgage

A first consideration should be to enquire why B is seeking a legal charge. Is it to ensure the work is done? To allow B to carry out the works in default? Or is it a question of money, ie does B want security that, if A fails to carry out the work, B will receive funds (eg by way of sale of A’s land) to pay for the works?

There are a number of ways this could be catered for:

The obligation to build

However the obligation is to be secured, it is advisable to set out in detail the undertaking to build.

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