Taking security over land
Taking security over land

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

  • Taking security over land
  • Taking security over land—what is secured?
  • Relevant types of security in relation to land
  • Mortgage
  • Charge
  • Creating a legal mortgage over land
  • Registered land (freehold or leasehold)
  • Unregistered land
  • Legal mortgage of land—what is a charge by deed expressed to be by way of legal mortgage?
  • Is a 'legal charge' a mortgage or charge?
  • More...

Land (or real property) is commonly offered as security for a loan. In this context, land has more relevance than some other assets because it can be used in personal lending transactions (eg home purchases) as much as commercial lending transactions.

In commercial lending transactions, land is particularly commonly offered as security:

  1. as part of a package of security over the whole of a company's assets (see Practice Note: Key features of debentures)

  2. in property finance (where land is acquired as an investment or bought for the purposes of development—see Practice Note: Security in real estate finance transactions), and

  3. in project finance (where the project site usually represents a significant proportion of the borrower's assets—see Practice Note: Security in project finance transactions)

This Practice Note explains the key issues that arise when taking security over land located in England or Wales and covers:

  1. the types of security that can be created over land

  2. how to create a legal mortgage over land

  3. how to create an equitable mortgage or charge over land

  4. formalities when creating security over land

  5. due diligence

  6. key terms of the security document

  7. insurance issues

  8. tacking further advances

  9. perfection and priority issues, and

  10. enforcement of security over land

This Practice Note focuses on registered land because the majority of land located in England and Wales is now registered. For information about taking security over unregistered

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