Getting uncharged properties ready for charging
You can speed up the charging process for when you require funds by getting your properties ready for charging in advance.
Advantages
The biggest advantage is that there is less stress for all involved as you will understand your security portfolio and can remedy any issues ahead of time so that the security is chargeable when required. The delay encountered in charging properties is usually due to items being awaited from third parties, such as Local Authorities or issues with the properties making them unchargeable and it is stressful and difficult to manage this when funds are required urgently.
Cost
Our fee for acting for you in getting properties ready for charging and then separately charging them at a later date will be broadly the same as if we were to charge the properties straight away. The only additional minimal costs which may be incurred are Council’s fees for obtaining up-to-date LLC1 only searches. You are, however, likely to achieve costs savings against this as you will not incur the fees which the lenders’ solicitors charge for dealing with properties in tranches.
Timing
If you know that you are going to need funds in the next two to three years you can get the properties ready for charging in advance. There is no timescale within which the properties must be charged once they are ready, as the only work which is carried out which has an expiry date is the LLC1 only searches which may need to be refreshed when the full sample searches are carried out.
Steps to be taken - getting the properties ready for charging
- Identify the Titles.
- Obtain Official Copy Entries, Filed Plans and Official Copy Documents.
- Compare the Filed Plans with the free Land Registry MapSearch service to accurately identify the properties and determine that there are no boundary issues.
- Prepare a Titles Table.
- Carry out LLC1 only search results on one property from each road in each scheme and check these to identify the planning histories for the properties.
- Apply for the planning and other items required, such as planning permissions, Section 106 Agreements, Building Regulations Completion Certificates, Section 278 Agreements, Section 33 Agreements and Nomination Agreements.
- Obtain confirmations of compliance with all conditions requiring formal discharge in planning permissions and of compliance with obligations contained in Section 106, Section 278 and Section 33 Agreements.
- Obtain evidence of NHBC or equivalent cover where the properties are less than ten years old.
- Prepare a Table of Outstanding Items and keep this up to date.
- Prepare a draft Certificate of Title on the properties to be charged.
Steps to be taken - when lender identified
- Agree sample full Local, Water and Drainage, Environmental and Chancel Check Searches (and any other relevant searches) with the Lender’s solicitors and carry these out, check the results of these searches and report on these in the draft Certificate of Title.
- Collate the Conditions Precedent, such as valuation, block insurance policy and up to date insurance schedules, standard form tenancy agreements and Legal Charge.
- Agree the Certificate of Title with the Lender’s solicitors.
This stage can be done within six to eight weeks of being advised of the Lender to whom the properties are to be charged, if the properties are ‘cleared’ for charging at that time.
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