• Standard Form Of Restriction

    By Guest on 10th Jan 2024

    I wish to lend my Sister in Law some money with a charge against her property. What Standard form of restriction should we use.

  • 1 Answers

    By Guest on 15/01/2024

    Hi,

    A restriction is perhaps not the most appropriate method of securing your interest and you should think about registering a charge. Land Registry produce form CH1 for that purpose. If the property is currently mortgaged then you (or rather your sister) will need to seek the consent of her lender to the registration of a 2nd legal charge, or else it can be registered as an equitable charge by way of a unilateral notice. If the property is mortgage free it can be registered as a first legal charge. Be careful though - lending money and using a person's home as security, unless you are an FCA approved and regulated lender, can be a criminal offence, and having a restriction instead of a charge might not make a difference. You should therefore seek legal advice, as should your sister.

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