Charging Order? The myth

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Hi LRR


Can I just ask for a bit of guidance (not advice!) on form CH1, please.




For Section 8 -


The "obligation for further advance etc" box is being ticked but is there a standard form of Restriction associated with this notification?


For Section 9 - Additional Provisions


Is this simply a record of the money/dates being loaned now and how detailed does it have to be?


For Section 10 Execution


Is there anything required other than the signature of the borrowers and the lenders (as they have agreed to be obligated to further borrowing) or


If you can't help (if it is classed as advice) can you point me to a good place to read up, please?


Thank you

Land_Registry

Section 8 - no restriction is registered. An additional note re the obligaiton is added the C Charges Register entry

Section 9 - any additional provisions they wish to include. Often they will contain details of repayment schedule etc but in some cases simply left blank

Section 10 - normal requirements re any execution needed to make it a legal document. Signature and witnessing requirements

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Thank you LRR!

In section 8 there is a second tick box that asks you if you would like a standard form of restriction to be registered, are you saying this isn't required?

For the witness requirements for section 10 can I just ask what the "normal" requirements (ie can anybody witness or does it have to be a solicitor, bank manager etc?)

Land_Registry

Panel 8 covers the issue of both the obligation you mentioned and the option to also apply for a restriction. They are two separate things albeit covered by one panel 8

Witnessing requirements - the witness should be independent, and preferably someone who knows you well and could confirm you did sign the deed if necessary. One person may witness more than one signature but must sign and complete the details below every signature witnessed.

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Thanks again, LRR!

One last clarification and we'll be done. In Section 8 does a Restriction need to be applied for given the Charge will be in the Registered Charges section on the deeds? I'm just a little confused as to why they would offer this choice?

Land_Registry

They would always have to apply for a restriction if using form CH1

The majority of major/high street lenders have their own forms of legal charge which are pre-approved by us. These will contain all the various terms and conditions as well as an application for any restriction/obligation etc etc

The key thing to remember is that a restriction, if linked directly to a legal charge, would always have to be applied for either in the terms of the charge itself or in form RX1.

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Hi LRR thanks again.


Is there a usual, or most often, type of Restriction (ie A, K etc) that is usually applied for under this type of legal charge?

Land_Registry

Form P is probably the most commonly applied for but it can vary depending on what degree of protections the lender is looking for
The standard restriction is
RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the Charge dated dd/month/year in favour of The Lender referred to in the Charges Register.

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Thank you for you help LRR!


You said if they weren't using a Solicitor then the application had to be sent to your Wales office. Can I just confirm its this address, please,


Ty Cwm Tawe, Swansea Enterprise Park, Phoenix Way, Swansea, West Glamorgan SA7 9FQ

Land_Registry

Close and I suspect sufficient but official address is Citizen Centre, Land Registry Wales Office, Tŷ Cwm Tawe, Phoenix Way, Llansamlet, Swansea SA7 9FQ