First Legal Charge over the Property

theFlash

Is it normal to have this on a mortgage offer?:
"We require a first legal charge over the Property"


I've not had that on an offer before, but this is a new lender.



Does this mean they would appear on the Land Registry documents also?

sal_III

AFAIK this is fairly common (if not mandatory) term (I have it on my mortgage).

Yes they will appear on the land registry.

westernpromise

I've never had a mortgage offer without that term.

theFlash

Thanks. I've seen a fair few Land Registry documents over the past year, and only two had a lender mentioned on them - I remember it because the Land Registry refused to remove an outdated clause on it due to the mortgage on the land.


I can't imagine all the others I've seen have paid off their mortgages, so I suspect this is a relatively new thing? I can say for sure, a mortgage I had around 8 years ago did not have this.


I'm wondering if its more common with the banks than the building societies.

davidmcn

theFlash wrote: »

Thanks. I've seen a fair few Land Registry documents over the past year, and only two had a lender mentioned on them - I remember it because the Land Registry refused to remove an outdated clause on it due to the mortgage on the land.


I can't imagine all the others I've seen have paid off their mortgages, so I suspect this is a relatively new thing? I can say for sure, a mortgage I had around 8 years ago did not have this.


I'm wondering if its more common with the banks than the building societies.

I very much doubt that you've ever had a mortgage which didn't involve you granting a charge over the property. That is literally what the mortgage is. Otherwise the lender can't repossess the property.

theFlash

Perhaps, but they certainly were not on the Land Registry documents.

theFlash

Are they always put on the Land Registry Documents?

Gary123456790

theFlash wrote: »

Are they always put on the Land Registry Documents?

Yes. Mortgage is secured against a home, and your solicitor registers that security with land registry. Land registry records which lender is 1st, 2nd (if there is one) etc.

theFlash

Thanks. Weird though as its not been shown on our Land Registry documents before, and doesn't seem to be on people who I know have a mortgage. Perhaps it depends on the efficiency of the solicitor.

kingstreet

A mortgage would be lodged on the Charges register.

Have you looked at that, or have you simply looked at the Property and Proprietorship registers?

Bass_9

westernpromise wrote: »

I've never had a mortgage offer without that term.

If you had one without I'd say you were onto a winner of a mortgage... :rotfl: