Q&As

We have a charging order secured against a property, which is protected by way of a UN1. The defendant company has a restriction registered against the title which pre-dates the charging order. The debenture is noted as a restriction and not as a legal charge on the title. Our charging order is protected by way of a UN1. Does the fact that the debenture is not entered by way of a legal charge on the title document in any way promote our interest above that of the debenture?

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Produced in partnership with Victoria Jones of Freeths
Published on LexisPSL on 03/12/2015

The following Property Q&A produced in partnership with Victoria Jones of Freeths provides comprehensive and up to date legal information covering:

  • We have a charging order secured against a property, which is protected by way of a UN1. The defendant company has a restriction registered against the title which pre-dates the charging order. The debenture is noted as a restriction and not as a legal charge on the title. Our charging order is protected by way of a UN1. Does the fact that the debenture is not entered by way of a legal charge on the title document in any way promote our interest above that of the debenture?
  • What is a charging order?
  • What is a unilateral notice?
  • What is a restriction?
  • What is the effect of the restriction pre-dating the charging order? Does the fact that the debenture/restriction is not entered by way of a legal charge on the title document promote the charging order (which is protected by way of a UN1) above it?

We have a charging order secured against a property, which is protected by way of a UN1. The defendant company has a restriction registered against the title which pre-dates the charging order. The debenture is noted as a restriction and not as a legal charge on the title. Our charging order is protected by way of a UN1. Does the fact that the debenture is not entered by way of a legal charge on the title document in any way promote our interest above that of the debenture?

What is a charging order?

A charging order secures a debt by creating an equitable charge so that, when the property is sold, the creditor will receive payment out of the sale proceeds after the repayment of all mortgagees and other charge holders with priority. (Charging Orders Act 1979, s 3(4)).

For further guidance, see Charging orders—overview.

What is a unilateral notice?

A creditor can protect the priority of a charging order over a legal estate, if it is valid, for the purposes of the Land Registration Act 2002, ss 29–30 (LRA 2002 by registration at HM Land Registry by a unilateral notice using Form UN1. LRA 2002, ss 29–30 and 32.

The notice is entered in the charges register.

For further guidance, see Practice Notes: Registration of a charging order over land and Land registration—notices and priority under the Land

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