How easy for an individual to put a legal charge over a mortgage free property ?

[Talay]

I am considering buying a property for someone where I want to hold a registered first legal charge with a negative pledge clause to prevent 2nd and any further charges on the property.

How easy is it to get this done and has anyone tested the validity of a private first charge ?

 

[Frank the Insurance guy]

Go and get legal advice on this - if the owner has a debt owed to you then you should be able to register as first legal charge.

Not sure how you would prevent further charges - I suspect it would need be in a contract with the home owner preventing them from doing so?

Get legal advice!

 

[Mark T Jones]

I'm no expert, but I do know that first legal charges are more difficult than second charges

You can notify an interest at Land Registry which should prevent other charges from being taken

 

[STDFR33]

I know about trusts.

And I know enough about trusts to tell you that they are a minefield.

I could type out some blurb that may or may not be relevant ... probably not relevant given we don't know all the facts.

I therefore concur with the above advice. Get professional, paid for advice (someone you can sue if it goes tits up).

 

[Talay]

I have been to the sage for advice and I will go to a higher (even more well paid) sage for further advice.

However, I am not asking whether I should go for advice but for any experience of an individual raising a first charge with a negative pledge which is what means future charges cannot be raised on the property.

It is not about being able to sue someone as I will not be here to sue.

 

[Michael Loveridge]

It's perfectly easy to do this. When registering the charge at the Land Registry you simply register at the same time a `Restriction' saying that no subsequent charges can be registered without your consent.