Scope of this Practice Note

Land (or real property) is commonly offered as security for a loan.

In commercial lending transactions, land is particularly commonly offered as security:

1. •

   as part of a package of security over the whole of a company's assets (see Practice Note: Key features of debentures)

2. •

   in property finance (where land is acquired as an investment or bought for the purposes of development—see Practice Note: Security in real estate finance transactions), and

3. •

   in project finance (where the project site usually represents a significant proportion of the borrower's assets—see Practice Note: Security in project finance transactions)

This Practice Note explains the key issues that arise when taking security over unregistered land located in England or Wales and covers:

1. •

   the types of security that can be created over land

2. •

   how to create a legal mortgage over land

3. •

   how to create an equitable mortgage or charge over land

4. •

   formalities when creating security over land

5. •

   due diligence

6. •

   key terms of the security document

7. •

   insurance issues

8. •

   tacking further advances

9. •

   perfection