Planning to Lend Some Money on a Mortgage? or Borrowing money to get the Property of your dreams in the UK? Make sure you go through the Financial Legal Laws. Wait, Do you already have any debts unpaid? and Receiving a Charge on a Property? Well, It is the Outcome. Yeah, just use the Guide and get the solution!

What is a Charge on a Property?

What is a Charge on a Property?

To be definitive, A Charge on a Property is Collateral. A Legal document that turns an unsecured loan into a secured one. This is a  Legal Agreement on the Property which you used to get the Loan. The Lender can secure or obtain the loan if you fail to repay it on time.

Let’s make you understand- Precisely, It is a financial claim against your Property which the Lender can do. Understand quickly – Imagine you took a loan to buy a Property and the One who provided you a Loan – can put a Charge against you. So, Now the Home becomes Collateral, which means if you don’t pay the loan back, Legally your Home will get taken over by the money lender.

How does the Charge on Property work? UK

Ofcourse, There is a Procedure that should be followed to Charge on property work. The procedure will change from bank to bank. But some legal laws should be followed by all the banks or from the lenders. Here we provide the real-time procedure/work to charge on property.

CCJ>> Interim charge>>  Final Chare>> sale- This is how the Charge on the property gets worked in UK. 

COUNTY COURT JUDGEMENTS – CCJ 

The First step is to follow -you should attend the court hearing and get the County Court Judgement. In the judgment copy, the court provides a certain time to pay off the debt that you have borrowed from the lender or the Bank. In General, Borrowers should take legal steps to Secure the debt and reclaim what they have owed. You will receive the CCJ only in England or Wales.

INTERIM CHARGING ORDERS 

Interim charging order will be received from the UK government court. If you don’t pay your debt in Due time or fail to repay your loan – You will revive the charging order along with the reasons for the order. The order includes the reasons like,

  • Your lender details
  • Due amount, due date, and more.

The Charge is applied at the Land Registry. In addition, this interim charging order goes ahead without hearing a court. If you don’t take any steps or not apply any object letter toward the Interim charging order – Will receive the Final charging order after 28 days.

Can I object the Interim Charging Orders?

Yes, You can object to the Interim order with valid reasons. You should send a valid reason to the court in the name of the objection letter within 28 days. Reasons that include, 

  • If lenders cheat on your payment.
  • Interest rate is increased highly, which is not mentioned in the loan agreement. etc.

FINAL CHARGING ORDER

After the Interim charge, If you fail to submit valid evidence. Or fail to pay the debts within the given time. You may have the chance to receive a letter from Charge on a Property. If you have received the final charging order from the court- it means, You have the chance to lose your house or property. It includes the sale order.

ORDER FOR SALE UK:

If you fail to repay your Charging Order, This Unpaid debt will lead you to the Court Ordered Sale. They force you to sell the house for sale. Or else you should sell the property or house to repay the debt of the creditor as the debt with interest.

Types of Charges on a Property

Different types of Charges can be created on one’s Property. If you have a Charge applied due to the Unpaid debt, then it might be any type as listed below;

FIXED CHARGE

Whenever a Property is placed as collateral for a Loan, This Legal Charge is applied. If the Holder has any interest in it, Then with a fixed charge, They are eligible to sell it to recover the debt.

EQUITABLE CHARGE 

Unlike other charges, This does not give any authority to the Charge Holder to sell the Property. (It’s not registered with the Land registry) It is charged with a Mutual Agreement between the two Parties without any Registration.

FLOATING CHARGE 

In case, the debt remains unpaid, Then the Lender has the right to sell the company Property. Yeah, These charges float over the company’s assets.

How to Find out if there is a Charge on my Property?

If you are selling your property or house. You should check this- charge on property in the UK. Because the charges may affect the sales and Value of your Home. There are various ways you can use to find out.

HM Land Registry UK:

You can use the HM Land Registry- a UK Government Department, that registers Lands and Issue Property Ownership in England and Wales.

  • On your Browser, Go to the  GOV.UK and Click on the Deeds Search.
  • You will get a list of Details appearing on your Screen.
  • Click on Search now and Enter your Postcode to Find Out if there is any Charge on your Property.
  • To use this service to Find, You will need to pay £3 via Credit or Debit card.

Local Authority Search UK:

Get Connected to the Local Authority Search, Look over the Local records, scan the history, and get other in-depth details on your Registered Land.

Get help from Solicitors :

Hire a Solicitor who can take the Legal stuff into their hands and get all the Important details. Obviously, the Solicitor’s cost can vary according to the Information you need, so make sure to get the best Legal Advice/ Solicitors to proceed.

Online Tools and Services :

There are numerous Online Platforms available to Check if there is any charge on your Property in UK. However, These ways are not so effective but can be used as just the investigative process.

How to Remove a Charge on a Property?

I know that nobody would ever want to have a “Charge on a property” that would lead to an Order of Sale. But if you are stuck in the situation, Use the given ways to remove it and get back to your Place in time. In UK, You can remove the charge concerned with the Mortgage or any secured debt by following these steps;

PAY OFF YOUR DEBT:

First things First, Pay your Debt as soon as possible. Ensure to Contact your Creditor and Know Exactly how much money is yet to be paid.

CONTACT THE LAND REGISTRY:

In order to remove the Charges on your Property, Consider contacting the UK Land Registry. Submit your Certification and Other needed documents. The Records are updated in the meantime when removal is done.

GET A SATISFACTION CERTIFICATE:

You can request a Certificate of Satisfaction from the Creditor and confirm that the Debt is Paid Fully. Now you can feel free to receive Charge on property letter.

How much is the Property Charge UK?

The charge will vary in the UK. It depends on your property sq. feet, value, area, and more. In general, The Charge on a Property UK often costs a fee that is between £50 and £200.

If you are the Lender, You can apply and Register for the Charge through the Official way;

  • Complete the Application form.
  • Certified Copy from CH1.
  • And the Required Fee.
  • For more details, You can visit the GOV.UK and get help.

Sadly, If you are the one in debt, then You will have to pay the full amount of the Debt. In Addition to that, The legal charges, Interest, and Other Charges will be included.

Final Verdict

Understanding legal terms and what they mean is important as a citizen. So, If you are a Creditor or a Debtor, You now know What is a Charge on a Property. Whether you are lending or borrowing money. This is something that you should know. To know more legal terms, follow the website.