Taking security over land and buildings—differences between Scots and English law
Produced in partnership with Addleshaw Goddard
Taking security over land and buildings—differences between Scots and English law

The following Banking & Finance guidance note Produced in partnership with Addleshaw Goddard provides comprehensive and up to date legal information covering:

  • Taking security over land and buildings—differences between Scots and English law
  • Land and buildings
  • Standard security v legal mortgage
  • Registration
  • Advance notice v searches
  • Assignation of rents v charge over rental income

This Practice Note seeks to highlight the key differences between the laws of Scotland and England relating to the creation of fixed security over land and buildings. These range from the form of security which it is possible to create over real estate, to how such security can be perfected and the importance of such perfection requirements.

For more information on taking security over land in general and, in particular, the position in England and Wales, see Practice Note: Taking security over land.

Land and buildings

A good starting point for this Practice Note is to examine what constitutes land and buildings for the purposes of taking fixed security. Under Scots law it is possible to take a fixed security in the form of a standard security over property which is owned outright (heritable property) or which is leased for a period of time (leasehold). In relation to leasehold property it is not possible to register at the Land Register of Scotland or the General Register of Sasines (the Scottish Property Registers) a lease for a term of 20 years or less. Accordingly, it is not possible to grant a standard security over a lease with a term of 20 years or less. Under English law, it is possible to create different types of fixed security and these can be granted