template

Standard Legal Charge Over Property (Single Lender)

by
Genie Team
Genie Team
Oct, 10 2023

When to use this template

This legal template, titled "Standard Legal Charge Over Property (Single Lender) under UK Law," pertains to a legally binding agreement between a borrower and a lender in the United Kingdom. The document outlines the terms and conditions surrounding the granting of a charge or security interest over a specific property owned by the borrower.

The purpose of this legal template is to establish a formal arrangement where the borrower agrees to pledge the property as collateral to secure a loan or credit facility provided by a single lender. The template ensures that the lender, who is usually a financial institution or an individual, has a legally enforceable claim over the property in case the borrower defaults on their loan obligations.

The document covers various aspects related to the charge over the property, including details about the property being charged, the terms of the loan, and the legal rights and responsibilities of both parties involved. It outlines the conditions under which the charge becomes effective, specifies the obligations of the borrower, and provides clarity on the lender's rights in case of default or breach of terms.

Moreover, this legal template is designed to comply with UK law, taking into account relevant statutes, regulations, and legal requirements that govern property charges and lending agreements in the country. Its purpose is to establish a fair and balanced contractual relationship between the borrower and lender, ensuring proper protection of the interests of both parties within the framework of applicable laws.

Ultimately, this template serves as a comprehensive and standardized document that can be used by lenders and borrowers in the United Kingdom as a starting point to draft a legal charge agreement over a property, incorporating specific terms and conditions as required by the unique circumstances of each transaction.

Key issues covered in this template

  • Apply for planning permission
  • Authorisation to act
  • Delivery method
  • Event of Default
  • Incidental powers
  • Insurance evidence
  • Plurality of interpretation
  • VAT option
  • Vested rights
  • Waiver of subrogation
  • N/A

What to watch out for

  • The legal mortgage should be granted by a company incorporated in England and Wales

  • The mortgage should be in favour of a single corporate lender

  • The mortgage should secure specific monies that the company owes the lender

19

Used by

Author

Genie Team

Genie Team

@genieteam
Genie AI

The Genie Team consists of lawyers and paralegals. Our aim is to open source the law and provide high quality, regularly reviewed legal documents.

A
O
R
D
M
I
F
I
M
A
B
p
+5 more
Legal Services
21%
Other
17%
Consultancy
13%
Finance
13%
Real Estate
8%
Education
8%
Sport & Entertainment
5%
Energy
5%
Technology
5%
Construction
5%

Additional information

Business categories

Business activities

Contract type

Relevant sectors

Construction

Real Estate

Relevant company sizes

1 - 3

20 - 49

250 - 999

4 - 19

50 - 249

1000 +

Governing law

England and Wales

Language

English UK

Gender neutral

Yes