Release of Charge
Cancellation of charges
There are a number of methods by which a registered charge may be cancelled:
- by a vacate endorsed on the charge deed;
- by a receipt executed by the charge owner in accordance with Rule 72 (Precedent 8.N);
- by a release executed by the charge owner in accordance with Rule 73 (Precedent 8.O); such a release may relate to all or part of the and which is subject to the charge;
- by a Court Order;
- on a sale of the land by the charge owner, or the owner of a prior charge, as mortgagee in possession;
- by the production of evidence which satisfies the Registrar that the charge should be cancelled (see below)
An Order Charging Land may be cancelled by any of the foregoing methods or - (a) by a Certificate of Satisfaction issued by the Enforcement of Judgements Office or (b) on a simple request made after the expiration of 12 years from the date of the judgement.
By virtue of Rule 74 the Registrar has power to authorise the modification or cancellation of a charge where he is satisfied that it is appropriate to do so. The evidence necessary to satisfy the Registrar will depend very much on the facts of each individual case, but most applications made under this Rule relate to charges which have become statute barred. An application for cancellation of a statute barred charge may be made by lodging:
(i) a certificate by a solicitor setting out all relevant facts (Precedent 8.P);
(ii) the Land Certificate;
(iii) the Certificate of Charge (if any) or an application to dispense with its production (see paragraph 8.2); and
PRECEDENT 8.N
RECEIPT BY A REGISTERED OWNER OF A CHARGE
LAND REGISTRY
Folio:
County:
Registered Owner: AB
Registered Owner of Charge: CD
CD, the above-named registered owner of a charge registered on .......... 20.. as a burden on the land comprised in the above-mentioned folio, hereby acknowledges the receipt of all monies due on foot thereof for principal and interest.
Dated:
Signed, Sealed and Delivered etc.
PRECEDENT 8.O
RELEASE OF LAND CHARGED, OR PART THEREOF, FROM A CHARGE
LAND REGISTRY
Folio:
County:
Registered Owner: AB
Registered Owner of Charge: CD
CD, the above-named registered owner of a charge registered on .......... 20.. as a burden on the land comprised in the above-mentioned folio, in consideration of £.......... (receipt acknowledged) hereby releases from the said charge the said land (or, that part of the said land described in the Schedule hereto. Nothing herein contained shall prejudice the operation of the charge in relation to the land comprised in the said folio and not included in the said Schedule).
Dated:
Signed Sealed and Delivered etc.
(Insert Schedule, if necessary.)
PRECEDENT 8.P
APPLICATION FOR CANCELLATION OF A STATUTE BARRED CHARGE
LAND REGISTRY
Folio:
County:
Registered Owner:
I, the undersigned .......... a partner/solicitor in the firm of .......... of .......... hereby certify that:
1. I act for the above-named registered owner (or as the case may be).
2. I have made all necessary enquiries regarding the charge registered on the above folio on .......... 20.. in favour of ..........
3. (Give details of the address of the person entitled to the charge or, if he is dead, give any available details of his Personal Representatives or next of kin.)
4. As a result of my enquiries, I am satisfied that the said charge is now statute barred by virtue of the provisions of the Limitation (NI) Order 1989 and is therefore no longer enforceable. Accordingly I request that the entry in respect of the said charge be cancelled.
Dated:
Signed: