Removing a Ltd company charge

Geraldsprawnsandwich

Hi I am sole director and shareholder of a ltd company that owns btls. One of the properties has a mortgage which is due for renewal. I have decided to pay it off with savings. At present the lender has a charge on my ltd company. Once I pay this mortgage off who will remove the charge? Is it the lender or can I do it myself? I’m hoping i don’t need to pay a solicitor to do this. Many thanks in advance.

user1977

A charge on the company? Do you mean a debenture (or floating charge)? As opposed to a legal charge over the property? If it's merely the latter then it's going to be the same process as for any other type of borrower, so I'd expect the lender to deal with it.

Geraldsprawnsandwich

Thank you - it’s a fixed charge from the lender registered on a MR01 (Ef) form it was filed by the solicitor that acted for the company when it purchased the property with a mortgage. 

Zerforax

The Chargor or Chargee can file a MR04 form with Companies House (it's pretty easy to fill out - you can do it yourself).

Banks will often be very slow or not do the MR04 form. You should make sure you have a signed deed of release as evidence that the bank has released the charge.

Geraldsprawnsandwich

Thank you very much- very helpful

Geraldsprawnsandwich

hi zerforax
one thing I forgot to ask you was who lets the land registry know to remove the charge once the mortgage has been settled? Can I do this or would it be the bank?
thank you
tim