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The rules on priority in registered land are governed by the Land Registration Act 2002 (LRA 2002).
Under the basic rule of priority, the priority of an interest affecting a registered estate or charge is not affected by a disposition of the estate or charge (LRA 2002, s 28). However, the registration of a registrable disposition made for valuable consideration (including the grant of a legal charge) postpones the priority of an earlier interest if that earlier interest is not ‘protected’ (the Special Rule) (LRA 2002, ss 27(2)(f) and 29). For further guidance on the basic rule and the Special Rule, see Practice Note: Land registration—notices and priority under the Land Registration Act 2002.
The priority of a legal charge is protected by registration of the charge at HM Land Registry (HMLR) (LRA 2002, ss 27, 28, 29). The effective date of registration is the time of the making of the application.
Priority between two legal charges is determined by the date on which they appear in the register (unless there is an entry to the contrary in the register).
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