Registered Charge on Land Registry

Summer69

Hi

Random question but what does 'Registered Charge' mean on a land registry? It's for a property that was bought in 2006. The registered charge was added approx 18 months later. The property is now rented out by the same owner (and has been for some time)

Might the Registered Charge and the date be when it changed from Ownership to To Let? I presume the property would have had to be remortgaged or at least the lender would have has to be notified and may have charged an additional fee or something?

Basically, I am wondering if the date on the Registered Charge could be the date the property changed to live in owner to being rented out?

Thank you

david29dpo

No. It means there is a loan on the house and the date the loan was added.

G_M

The Charge is probably a mortgage.

If you are buying, it's not a concern as the Charge will be removed (mortgage paid off) when the sale Completes.

Summer69

Hi

I know it's not a concern if I'm buying. I'm not. Just trying to find out if that was the date it was changed from live in owner to rented out.

The mortgage would have been from the date it was bought in 2006, which is of course also mentioned in the registry, so just trying to figure out what this charge in 2008 was if it didn't change owner. Could it have been remortgaged on this date? And could the remortgage be due to changing from live in owner to rented out?
There are no other charges on the registry since 2008 and the property is still rented out by the same owner.

david29dpo

The charge and the date will not tell you what you want to know.
All it means is there is a loan on the house (mortgage or re mortgage) and the date.

Thats it.

G_M

Summer69 wrote: »

Hi

I know it's not a concern if I'm buying. I'm not. Just trying to find out if that was the date it was changed from live in owner to rented out.

The mortgage would have been from the date it was bought in 2006, which is of course also mentioned in the registry, so just trying to figure out what this charge in 2008 was if it didn't change owner. Could it have been remortgaged on this date? And could the remortgage be due to changing from live in owner to rented out?
There are no other charges on the registry since 2008 and the property is still rented out by the same owner.

Owner might have remortgaged for a better rate at that date.
Owner might not have had a mortgage originally but then took one out at that date.
Owner might have switched to a BTL mortgage at that date.
Or the Charge might not be a mortgage at all.

beeg0d

As you suspect the charge is most likley when the owner remortgaged from a owner occupyer mortgage to a BTL mortgage. though could be for many different reasons, though moving to BTL is most likley from the information youve given.

G_M

shouldn't that be 'lickley'?

moneyistooshorttomention

G_M wrote: »

The Charge is probably a mortgage.

If you are buying, it's not a concern as the Charge will be removed (mortgage paid off) when the sale Completes.

Wouldn't that depend on the name of whoever-has-the-charge? I'm thinking of a property I'm aware of that has both a mortgage and a Registered Charge on it. As far as my memory recalls - it was clear which one was a mortgage and that the other one was obviously a loan. I remember thinking "If anyone was ever prepared to buy that house off them, then the mortgage would presumably be paid off. But the charge wouldn't be".

With the house I have in mind - I'm not convinced that house would even be able to be sold for enough to pay off whatever level of mortgage they have on it.

david29dpo

The charge could be any type of loan.
A 2nd charge is usually a secured loan from a different lender and as you say, there may not be enough money left to pay the 2nd off after the first has been paid.