Second charge question (As a lender..)

secondcharger

I've lent some money to a builder to rebuild his home. He already has a sizeable mortgage against the bank for the property initially.

We set up a second mortgage document, and a loan agreement (a solicitor helped me do this) and we've registered a second charge with the land registry, after the bank. All fine so far (I hope), and the property is almost finished. Looks great...

He now wants to borrow some more money to finish it (inevitable overspend?) and I've agreed. I've prepared another copy of a the loan and mortgage document, exactly as before- but do I need to register another (third?) charge against the property? I've simply asked him to sign the same forms so far, so I'm not sure if the charge would extend to cover the additional borrowing. I'm keen to avoid paying a load more fees to lawyers.

Any suggestions/ideas/advice appreciated.
Thanks

Annisele

Get him to pay your legal costs.

GMS

Your second charge should be all monies so can be whatever the balance is. No specific amounts stated on a charge.

Check with a solicitor though, and as mentioned earlier get your legal costs paid or added to the amount.

How is the builder intending to repay the loan?