The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
Security over land can be taken by way of mortgage or charge with the appropriate form often depending on the significance of the land to the borrower's business or the relevance of the land to the particular transaction. Where the land is considered a material asset or the loan is used to acquire or develop land, lenders are more likely to require a legal mortgage. If the land is a less significant asset, lenders may be prepared to accept an equitable mortgage or charge. For more information on the potential security available, see Practice Note: Types of security.
To perfect security over land granted by a company registered in England & Wales, the security is registered at Companies House. In the case of land in particular, if the security is in respect of registered land and is intended to take effect as a legal mortgage, the security must also be registered at HM Land Registry. If the security is in respect of unregistered land, granting security will usually trigger first registration of the land at HM Land Registry. Where granting security does not trigger first registration, the security interest can in some cases be registered at the Land Charges Department. For more information on perfecting security and registration, see Practice Note: Perfecting security over land and registration at HM Land Registry.
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