This Practice Note sets out the process for dealing with the release of security over commercial (as opposed to residential) property and the issues that must be considered when discharging a commercial mortgage.

In residential conveyancing, most transactions are completed using the Law Society’s Code for Completion by Post (the Code) which contains an undertaking by the seller to discharge the seller’s mortgage on the property. While the Code is expressed to be for use in either residential or commercial transactions, it will not always be appropriate either to give the undertakings contained in the Code or to rely on the undertakings contained in the Code for the release of security over the property. A departure from the terms of the Code may need to be agreed depending on the terms of the transaction.

This Practice Note assumes a situation where the buyer and/or the buyer’s lender insists that the discharge of the seller’s mortgage is available on completion. Since the seller usually needs the proceeds of sale to discharge the mortgage and the seller’s