Further advance and second charge

MrCalcium

I have a mortgage with Santander and 5 years later took a second charge loan on the property.

I'm looking to take a further advance with Santander, and told I have 2 options:

1) Get a deed of postponement from the second charge lender. Does anyone know if this gets registered/reflected in the land registry?

2) Consolidate the second charge with my Santander further advance. Again, does anyone know whether a further advance gets registered as a charge or updates the land registry in any way?

Trying to gauge which option is less complicated.

Thanks.

kingstreet

A further advance is part of the mainstream lender's first charge.

The second charge holder is asked to issue a deed of postponement as the increased first charge borrowing could affect its security as it's reducing the potential equity for the second charge holder in the event of default.

If the second charge is repaid from the further advance, the LR will be updated with the removal of the second charge.

MrCalcium

kingstreet said:

A further advance is part of the mainstream lender's first charge.

The second charge holder is asked to issue a deed of postponement as the increased first charge borrowing could affect its security as it's reducing the potential equity for the second charge holder in the event of default.

If the second charge is repaid from the further advance, the LR will be updated with the removal of the second charge.

Thank you. Do you know if a deed of postponement gets recorded in the land registry?

kingstreet

I can't imagine why it would. It's simply lender B saying it's happy for lender A to lend more.

MrCalcium

kingstreet said:

I can't imagine why it would. It's simply lender B saying it's happy for lender A to lend more.

Thanks you. Would a further advance with current lender result in land registry update?

housebuyer143

MrCalcium said:

kingstreet said:

I can't imagine why it would. It's simply lender B saying it's happy for lender A to lend more.

Thanks you. Would a further advance with current lender result in land registry update?

No, they hold the first charge so it doesn't need to register another charge. 
Who says you need a deed of postponement? 

silvercar

Why are you concerned about a Land Registry update? 

MrCalcium

housebuyer143 said:

MrCalcium said:

kingstreet said:

I can't imagine why it would. It's simply lender B saying it's happy for lender A to lend more.

Thanks you. Would a further advance with current lender result in land registry update?

No, they hold the first charge so it doesn't need to register another charge. 
Who says you need a deed of postponement? 

My broker told me I need it unless I consolidate the second charge with a further advance 

MrCalcium

silvercar said:

Why are you concerned about a Land Registry update? 

Wouldn't this need a solicitor and therefore prolong the process?

silvercar

MrCalcium said:

silvercar said:

Why are you concerned about a Land Registry update? 

Wouldn't this need a solicitor and therefore prolong the process?

No if the company giving you more money already holds a charge. Either way it wouldn’t prolong the process. The solicitor undertakes to the lender to register a charge, no one waits around for the Land Registry to process that.