Guidance

Practice guide 29: registration of legal charges and deeds of variation of charge

Updated 17 April 2023

Applies to England and Wales

Please note that HM Land Registry바카라 사이트檚 practice guides are aimed primarily at solicitors and other conveyancers. They often deal with complex matters and use legal terms.

1. Introduction

A charge may be made in form CH1 in accordance with rule 103 of the Land Registration Rules 2003. This form is not prescribed and lenders may use charges tailored to their own particular requirements.

2. Approved forms of charge

Lenders may have all their forms of charge approved by the Commercial Arrangements Section at HM Land Registry Head Office. Approval of charges carries the following benefits.

• No separate form RX1 is needed to register a standard restriction applied for in the charge
• No separate form CH2 is needed to register an obligation to make further advances that is applied for in the charge
• We will create computer codes for lenders with approved forms of charge which will ensure that their agreed name and address(es) for service and appropriate restrictions and obligation entries are always entered accurately in the register

For details of the approval process, please see practice guide 30: approval of mortgage documentation.

3. Application to register a charge

To apply, you should include the 바카라 사이트�charge바카라 사이트� or 바카라 사이트�charge of part바카라 사이트� transaction in your application and upload a certified copy of the lender바카라 사이트檚 own form of charge or a completed form CH1.

If the charge is by an overseas entity they will have to comply with the requirements in the Economic Crime (Transparency and Enforcement) Act 2022. For information about this Act and evidence that must be provided to HM Land Registry, see practice guide 78: overseas entities.

A charge of part must contain a plan identifying the property, unless it can be clearly identified on the chargor바카라 사이트檚 title plan, when it may be described by reference to that title plan. Where the charge contains a plan, the plan must be signed by the borrower.

Please note that form CH1 was amended on 1 August 2022 by the Land Registration (Amendment) Rules 2022 to require an overseas entity ID to be provided when applying to register a legal charge by an overseas entity. You can also find information about this in practice guide 78. Where a charge is in the lender바카라 사이트檚 own form of charge, the borrower바카라 사이트檚 overseas entity ID must be uploaded with the application.

You do not need to upload mortgage documents incorporated by reference in the charge itself (for example, rules of a building society, mortgage conditions, or an agreement for loan).

Registered charges rank, as between themselves, according to the order in which they are entered in an individual register (section 48(1) of the Land Registration Act 2002 and rule 101 of the Land Registration Rules 2003). However, this is subject to 바카라 사이트渁n entry in the individual register to the contrary바카라 사이트�. If you wish us to make an entry when registering a charge to the effect that the charge has priority over an existing registered charge, you should make clear in the application by providing written confirmation that you are seeking such an entry as part of the application. The following is an example of when you might want such an entry to be made.

• Charge A is created before charge B (so charge A has priority over charge B, as first in time 바카라 사이트� section 28(1) of the Land Registration Act 2002)
• Notice is entered in the register in respect of charge A
• Subsequently, charge B is completed by registration 바카라 사이트� at this stage the effect of charge A being noted is that its priority is protected as against charge B (section 29(2)(a)(i) of the Land Registration Act 2002)
• Later, charge A is also completed by registration

It is arguable that retaining the notice in respect of charge A constitutes 바카라 사이트渁n entry in the register to the contrary바카라 사이트�, and so allows for charge A to retain its priority over charge B. But you may also wish, when applying to register charge A, to seek an entry that expressly provides for charge A to have priority over charge B. It is likely that we will serve an objection notice on the proprietor of charge B before making any such entry.

We will not automatically remove the notice in respect of a charge when subsequently completing the grant of that charge by registration, but it would still be advisable to make clear, when applying to register the charge, that the notice is to remain in the register, so that this is done; see practice guide 19: notices, restrictions and the entry of third party interests in the register.

If a single application is made to register two or more charges at the same time, which are to be registered with an order of priority different to their dates of creation, please ensure that the order of priority is made clear when making the application. In such cases our casework systems will place charges in date order and the order of priority will be reflected by the notes being added to the charge entries to confirm the order in which the charges rank as between themselves (in accordance with rule 101 of the Land Registration Rules 2003).

4. Charges by UK companies and limited liability partnerships

To apply, you should include the 바카라 사이트�charge바카라 사이트� or 바카라 사이트�charge of part바카라 사이트� transaction in your application and upload a certified copy of the lender바카라 사이트檚 own form of charge or a completed form CH1. The charge deed must not be redacted in any way.

For charges created by UK companies and limited liability partnerships on or after 6 April 2013, and where the application is lodged by a conveyancer, you must also upload:

1. A copy of the certificate of registration issued by Companies House, and

2. Written confirmation or a certificate by the company, lender or conveyancer that the charge lodged for registration is:

• a certified copy of the original charge of which a copy (or a redacted copy under section 859G of the Companies Act 2006) has been filed at Companies House

• a certified copy of the charge to which the accompanying certificate of registration relates.

If lodging the application in the Digital Registration Service, the evidence in point 2 above is confirmed as part of the application process.

If you do not lodge the appropriate certificate of registration at Companies House and the additional written confirmation or certificate, we will make a note to the entry in the register stating that the charge may be subject to the provisions of section 859H of the Companies Act 2006 (rule 111 of the Land Registration Rules 2003).

If the application is not lodged by a conveyancer then we will also require a Companies House generated copy of the charge, bearing the unique identifier code for the charge, which should correspond with the code on the certificate of registration.

4.1 Charges which contain plans

If the charge contains a plan, Companies House will only accept an A4 sized plan for filing electronically. Where the plan is larger you will have to reduce the size of the plan annexed to the copy charge filed at Companies House. In these circumstances you can amend your written statement or certificate to say that the charge lodged for registration is:

• the original charge of which a copy (or a redacted copy under section 859G of the Companies Act 2006) has been filed at Companies House, save that the plan filed has been reduced in size to meet Companies House electronic filing requirements
• the charge to which the accompanying certificate of registration relates

4.2 Charges which are exempt from registration at Companies House

The requirement for registration at Companies House does not apply to:

• a charge in favour of a landlord on a cash deposit given as security on the lease of land
• a charge created by a member of Lloyd바카라 사이트檚 (within the meaning of the Lloyd바카라 사이트檚 Act 1982) to secure its obligations in connection with its underwriting business at Lloyd바카라 사이트檚
• a charge excluded from the application of section 859A of the Companies Act 2006 by or under any other Act

(Note: Charges created by overseas companies on or after 1 October 2011 do not have to be registered at Companies House nor will the provisions of rule 111A of the Land Registration Rules 2003 apply.)

5. Application to enter a restriction

An application for a restriction must be made in form RX1 unless the application is for a standard form of restriction and is made in panel 8 of form CH1, or it is for a standard form of restriction made in an approved form of charge (rule 92 of the Land Registration Rules 2003). No fee is payable in respect of the restriction if application for its entry accompanies the application to register the charge to which it relates.

Generally, any restriction entry that specifically relates to the charge you are discharging will be cancelled automatically when the charge is discharged. However, if a restriction in favour of the lender does not specifically refer to the charge being discharged, a separate withdrawal of that restriction in form RX4 must be lodged with the application to register the discharge. If form RX4 is not lodged, the restriction will remain in the register.

See practice guide 19: notices, restrictions and the protection of third-party interests in the register.

6. Application to note in the register a lender바카라 사이트檚 obligation to make further advances

An application to note an obligation to make further advances in an unapproved charge, or not in form CH1 must be made in form CH2, panel 8 of form CH1 or in an approved charge (rule 108 of the Land Registration Rules 2003).

The application must be made by either the lender or their conveyancer. No fee is payable if the application to note a lender바카라 사이트檚 obligation accompanies an application to register the charge to which it relates.

If the application is not submitted alongside the related charge, apply by including the 바카라 사이트榦bligation to make further advance바카라 사이트� transaction in your application and upload form CH2. A fixed fee will be due in accordance with Schedule 3, Part 1(1)(d) of the Fee Order.

7. Application to note agreed maximum amount of security

Under rule 109 of the Land Registration Rules 2003, an application may now be made to note in the register an agreement for the maximum amount secured by a charge.

Even if such an amount is stated in the charge itself, irrespective of whether or not the charge has been previously approved by us, or in a subsequent deed of variation, an application to note the maximum amount must always be made in form CH3. To apply include the 바카라 사이트榓greed maximum amount of security바카라 사이트� transaction in your application and upload form CH3.

If a later agreement is made to amend the amount of maximum security stated in the register, a further application in form CH3 can be lodged, accompanied by the appropriate fee. Although an additional entry will be made in the register in respect of the new amount, the original entry will remain in the register.

8. Consolidation of a charge

If a charge contains a right of consolidation with another specific charge, we will not make an entry in the register, unless specific application is made using form CC in accordance with rule 110 of the Land Registration Rules 2003.

To apply, include the 바카라 사이트榗onsolidation of a charge바카라 사이트� transaction in your application and upload form CC.

9. Fees

A fee is payable under the current Land Registration Fee Order (see HM Land Registry: Registration Services fees).

No fee is payable if the charge is lodged at the same time or before the completion of certain types of applications where a fee has already been paid. Further information about this is contained in the Land Registration Fee Order.

10. Documents issued on completion

The only documents that we will issue on completion of an application to register a charge are:

• an official copy of the register showing the entries that exist in the register on completion of your application
• a 바카라 사이트榬egister completion sheet바카라 사이트� which confirms that your application has been completed and explains the importance of keeping the register information up to date

11. Postponement of charge

To make an application to register the postponement of a charge you should include the 바카라 사이트榩ostponement of a charge바카라 사이트� transaction in your application and upload and a certified copy of the letter or deed of postponement.

11.1 Postponement by letter

The letter of postponement must be:

• on the headed notepaper of the lender which is postponing their charge
• signed by the lender which is postponing their charge
• addressed to either HM Land Registry or the lender whose charge is gaining priority.

The letter does not need to be signed by either the lender whose charge is gaining priority or the registered proprietor of the land.

See below for acceptable signatories.

Lender	Acceptable signatories
Bank or building society	The signatory should give their status or position which should be a director, secretary, solicitor or manager. We will also accept the letter if the signatory confirms they are an authorised signatory.
Company	The signatory should be the company바카라 사이트檚 secretary, a director or the company바카라 사이트檚 solicitor.
The Legal Services Commission	The signatory should be a person holding the rank of, or equivalent to, Civil Service Grade 7 or above.
Local authority	The signatory should be the Chief Executive, solicitor or a person who confirms they have delegated authority to sign under a resolution of the local authority and the date of that delegated authority.

11.2 Postponement by deed

The deed must be validly executed by the lender whose charge is being postponed. It does not need to be executed by the lender whose charge is gaining priority or the registered proprietor of the land.

11.3 Fees

There is a fixed fee under the current Land Registration Fee Order unless the postponement is lodged at the same time as an application for which either a scale fee or another fixed fee has been paid (see HM Land Registry: Registration Services fees).

11.4 Consent to restriction

If there is a restriction in Form P in the register in favour of the postponing lender, you do not need a separate consent to registration of:

• the postponement itself
• the registration of a new charge which is taking priority to the postponed charge.

Consent is implied by the signing or execution of the postponement. Most chargee restrictions are in Form P.

If there is a restriction in the register in favour of the postponing lender in Form N or Form T:

• where the restriction requires the written of a specified individual (usually the chargee바카라 사이트檚 secretary or conveyancer), a postponement executed or signed by that individual is acceptable as evidence of consent. If the postponement is executed or signed by a different individual, a separate consent is required
• where the restriction is worded so that it requires a written consent 바카라 사이트渟igned by [name of company] of [address]바카라 사이트� a separate consent is not required if the company named in the restriction has executed or signed the postponement.

11.5 Register entries

11.5.1 Postponement of one registered charge to another

바카라 사이트淭he priorities of the charges dated [date] [in favour of바카라 사이트�바카라 사이트�] and [date] [in favour of바카라 사이트�..] referred to above have been altered by a [letter/deed] dated [date].바카라 사이트�

11.5.2 Postponement of agreed or unilateral charge protecting a financial interest to a subsequent registered charge

바카라 사이트淭he priorities between the registered charge dated [date] [in favour of바카라 사이트�.] referred to above and the [type of interest for example 바카라 사이트渆quitable charge바카라 사이트漖 in favour of [name of beneficiary] protected by the notice also referred to above have been altered by a [letter/deed] dated [date].바카라 사이트�

11.5.3 Postponement - Homebuy Deed of Priority

바카라 사이트淭he priorities between the charges dated [date] [in favour of바카라 사이트�.] and [date] [in favour of바카라 사이트�] referred to above have been altered by a [letter/deed] dated [date] activated by a memorandum of application dated [date].바카라 사이트�

11.5.4 Postponement of discount charge

바카라 사이트淭he priorities between the discount charge referred to above and the charge dated [date] [in favour of바카라 사이트�] referred to above have been altered by a [letter/deed] dated [date].바카라 사이트�

12. Deeds of variation of a registered charge

12.1 General

An application to register a deed of variation must be made by including the 바카라 사이트榲ariation of a charge바카라 사이트� transaction and uploading a certified copy of the deed.

Our Commercial Arrangements Section at HM Land Registry Head Office will continue to approve deeds of variation. Please see practice guide 30: approval of mortgage documentation for further information.

It is not possible to apply in a deed of variation for a restriction or for an entry to show that a lender is under an obligation to make further advances. If these entries are required, separate applications must be made in form RX1 and form CH2 respectively.

12.2 Execution

Although the borrower must execute the deed of variation, there is no requirement for the lender to do the same. We will accept that the lender will be bound by the terms of the variation if the deed is either lodged by the lender or a practitioner acting on behalf of the lender.

Rule 113 of the Land Registration Rules 2003 requires that an application to register a deed of variation must be made with the consent of the proprietor of any registered charge (and the proprietor of any sub-charge derived directly or indirectly from such a charge) of equal or inferior priority to the charge being varied, if the other lender is adversely affected by the terms of the variation, unless that proprietor has executed the deed itself or its consent is not required under the terms of its charge or sub-charge.

Our view is that alterations of the following types do not adversely affect a charge (and sub-charge thereof) with equal or inferior priority.

• A reduction in the interest rate
• A reduction in the capital debt

However, we consider that any alterations that either:

• increase the interest rate
• increase the capital
• extend the term of the earlier charge
• create an obligation to make further advances, to be such as may adversely affect any charge (and any sub-charge thereof) with equal or inferior priority

In these circumstances, the proprietor of any charge (and sub-charge) adversely affected must (unless their consent is not required under the terms of their charge or sub-charge) execute the deed; or give their written consent to the registration of the deed of variation. The consents, or a certificate by a conveyancer that they hold the requisite consents, must be lodged with the deed of variation application.

Alternatively, the proprietor of any such charge (or sub-charge) may confirm that it does not consider its charge (or sub-charge) to be adversely affected by the terms of the variation and, consequently, feels that it does not need to execute the deed nor lodge a consent. However, in the absence of any evidence we will not raise a requisition. Instead, we will make a non-guaranteed entry in the following form in the register:

바카라 사이트淎 Deed dated __ made between __ is expressed to alter the terms of the Charge dated __ referred to above.

NOTE: Copy filed바카라 사이트�.

12.3 Fees

A fee is payable under the current Land Registration Fee Order (see HM Land Registry: Registration Services fees).

13. Digital mortgages

A digital mortgage is a mortgage deed that has been created, signed and dated electronically using HM Land Registry바카라 사이트檚 digital mortgage service, which is part of HM Land Registry바카라 사이트檚 network under section 92 of the Land Registration Act 2002. The digital mortgage will be made under section 91 of the Land Registration Act 2002, and (before 6 April 2018) the Land Registration (Electronic Conveyancing) Rules 2008. On and after 6 April 2018 those Rules are revoked and rules 54A to D of the Land Registration Rules 2003 (as amended) will apply. This means the digital mortgages created through the digital mortgage service will be regarded for all legislative purposes as deeds.

Digital mortgage deeds will not need to be witnessed, as the electronic signature process effectively acts as an online notarial system. The identity of the borrower is checked in advance of signing and the signature is certified. Although the digital mortgage deed is entirely electronic, it will be possible to get official copies of the deed in PDF format, once it is registered.

A digital mortgage deed can be distinguished from a paper mortgage deed in various ways, such as:

• it is headed 바카라 사이트楧igital Mortgage Deed바카라 사이트�
• it contains the statement:
  바카라 사이트淭丑颈蝉 charge takes effect when the registrar receives notification from [conveyancer name] that the charge is to take effect바카라 사이트� followed by the date the deed was made effective
• it includes a typographical representation of the borrower바카라 사이트檚 digital signature, such as: 바카라 사이트淪igned by Jane Louise Smith바카라 사이트�

13.1 The digital mortgage service

The digital mortgage service is a service that enables a conveyancer to create a digital mortgage deed. It can be used only to create remortgages of a borrower바카라 사이트檚 existing property.

A borrower will be able to access their digital mortgage deed using the 바카라 사이트楽ign Your Mortgage Deed바카라 사이트� service website. The borrower will need to prove their identity using 바카라 사이트 Verify. Once the borrower바카라 사이트檚 identity has been confirmed, they will be able to sign their deed electronically. This includes confirming they are signing their deed by entering a code that has been sent to their mobile phone. Once the borrower has signed the deed, the conveyancer can complete the transaction and make an application for registration.

The use of 바카라 사이트 Verify is an additional identity check at the point of signature. Use of the service does not change the requirements for a conveyancer to undertake their own identity checks in accordance with practice guide 67: evidence of identity.

13.2 How to use the digital mortgage service

Conveyancers must be registered Business Gateway users who have signed an HM Land Registry Network Access Agreement, to use the service. They will also need to have developed the relevant IT capability to use the service.

A lender who undertakes their conveyancing in-house will also be able to use the service. To use the service, the lender바카라 사이트檚 digital mortgage deed will need to be approved in advance for use with the service, and allocated an e-MD reference.

14. Things to remember

Always check that:

• the charge is in a form approved by us
• if it바카라 사이트檚 not, and the charge is not in form CH1:
  • your application should also contain a form RX1 to enter a restriction
  • your application should also contain a form CH2 to note an obligation to make further advances
• if the borrower is an overseas entity that you have complied with the requirements in the Economic Crime (Transparency and Enforcement) Act 2022
• you have uploaded form CH3 if an entry is required in the register to note an agreed maximum amount of security
• if your application includes a deed of variation, all the required parties have executed the deed or you have included the necessary consents

Please note that HM Land Registry may be unable to process applications that are incomplete or defective and your application will risk losing its priority if we have to return it to you 바카라 사이트� see practice guide 49: return and rejection of applications for registration for more information.

We only provide factual information and impartial advice about our procedures. Read more about the advice we give.