Effect of registration at HM Land Registry or Land Charges Department on priority of security interests
Effect of registration at HM Land Registry or Land Charges Department on priority of security interests

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Effect of registration at HM Land Registry or Land Charges Department on priority of security interests
  • Why is it important to determine priority between competing security interests?
  • What are asset registers?
  • Registration at HM Land Registry (registered land)
  • Registration at HM Land Registry—effect on priorities
  • Unregistered land—first registration triggered by grant of certain types of security
  • Registration at the Land Charges Department (unregistered land)
  • Registration at the Land Charges Registry—effect on priorities
  • Tacking further advances
  • Comparison between effect of registering security at HM Land Registry and effect of registering security at Companies House
  • more

Registration can have an important effect on the priority of competing security interests.

Broadly speaking, there are two different systems for registration of security interests:

  1. registration against the asset which has been secured, and

  2. registration against the entity providing the security

This Practice Note is concerned with the first system of registration, where the asset which is the subject of the security is land located in England or Wales.

For information about how registration against other assets affects priority of security interests, see Practice Notes:

  1. Effect of registration on the UK Ship Register on priority of security interests

  2. Effect of registration on the UK Register of Aircraft Mortgages on priority of security interests, and

  3. Effect of registration at IP registries on priority of security interests

Registration at an asset registry in most cases has a direct effect on the priority of the security but does not impact the validity.

In contrast, where the security provider is a company which is formed and registered under the Companies Act 2006, all security must be registered at Companies House (subject to a few exceptions) in order for the security to be valid as against certain third parties. Registration at Companies House has an indirect effect on priority only. For information about how such registration affects priority of security interests, see Practice Note: Effect of registering security