Land Registry Entries Query

[punkypossum]

Well, I am still thinking of buying a house and have found one I like and might consider putting in an offer (2nd viewing tonight) - having a look at the HIP at the moment and come across the following Land Registry Entry. No idea what it means, but the word "Charge" sounds worrying. Can anybody enlighten me?

2. (21.02.2006) REGISTERED CHARGE dated 7 February 2006.
3. (21.02.2006) Proprietor: NATIONWIDE BUILDING SOCIETY of Nationwide House, Pipers Way, Swindon L SN38 1NW.

4. (21.02.2006) The proprietor of the Charge dated 7 February 2006 referred
to above is under an obligation to make further advances. These advances
will have priority to the extent afforded by section 49(3) Land
Registration Act 2002.

 

[ChrisKH]

Charges are standard. They're just where the property owner has an obligation to a third party and the land/property is tied into it. E.g. offering a house as security for a mortgage. The mortgage company will have a charge over that property.

 

[Crankarm]

Charges are common place in that few can afford to purchase a property without a mortgage. This indicates that the current owner has a mortgage secured on the property which is to be expected. Clause 4 covers any further advances that may be made from the lender to the owner of the property that these will rank above any other subsequent charges taken out on the property. Since you have given no others details of charges then you don't appear to have much to worry about. But of course your conveyancer or solicitor should make you aware of any issues.

More importantly you should be looking for restrictive covenants or other entries that indicate a party has a right over the land such as right of way or to graize their goat on your front lawn.

 

[accountantpete]

What happens is that when you buy the house the lender (Nationwide) gets paid out of the proceeds and then relinquishes that charge. Your lender then takes a similar charge out over the property so that if you don't keep up with the mortgage they can repossess the property.

This is standard practice.

 

[punkypossum]

Cool, thanks guys! No goats allowed in the garden, all it states is that I have to share my ginnel with next door...

Oops...just realised I've started refering to it as MY ginnel already!

 

[Fnaar]

I'm allowed to dry fish at the end of next door's garden, apparently!

 

[punkypossum]

I'm allowed to dry fish at the end of next door's garden, apparently!

Always useful!!!