The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
To deal with the discharge and release of security, it is necessary to consider:
the conditions to be satisfied before any release is effected eg the redemption amount to be paid or consents to be obtained
notification of relevant third parties that the release has been effected eg where a legal assignment by way of security of a contract has been released by re-assignment to the relevant security provider
the nature of the security interest and the appropriate method to release it (see Choosing the appropriate document to release the security), and
the removal of any registration made at the time that the security interest was created (see Updating the registers following the release of security)
Once a secured debt has been fully repaid, the security provider is entitled to have the secured property released from the security interest and, if relevant (ie if the security was created by way of a mortgage or assignment by way of security), returned to it free from the security interest.
When a security provider has granted a mortgage or a charge, there must be no clog on the 'equity of redemption'. This means that there must be no fetter on the right of the security provider to redeem the security and recover unencumbered enjoyment of the secured property
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234