Encumbrance meaning

Why do lenders require security? It is standard practice for lenders to seek security over a borrower’s assets as a condition of making loan facilities available. Granting security gives the lender specific rights over the secured property if the borrower does not repay, including the ability to sell those assets to clear the outstanding debt. What types of security might a borrower be asked to provide? The rights arising from a security interest vary with the form taken. Security may take the form of: Mortgage—under a mortgage, legal and/or beneficial ownership of an asset is transferred to the lender for security, on the basis that it will be returned to the borrower once the debt is repaid or the obligations satisfied; an assignment by way of security is a form of mortgage (see Practice Note: Mortgages) Charge—a charge, which may be fixed or floating, is an encumbrance over the asset that empowers the lender to sell the charged asset to repay the debt...

FORTHCOMING CHANGE: The Renters’ Rights Act 2025 The Renters’ Rights Act 2025 obtained Royal Assent on 27 October 2025. For guidance on the Act’s effect on residential tenancies in England, see Practice Note: Renters’ Rights Act 2025—key provisions... A Absolute title A category of title available for registered land. Absolute title is the strongest class that can be granted; it denotes that, apart from matters on the register and any overriding interests, nothing affects the registered proprietor’s freedom to deal with the land... Abstract (of title) A certified summary, prepared by a lawyer, setting out the contents of the title deeds for a particular property... Acquiring authority See Compulsory purchase... Act of Parliament Legislation passed by both Houses of Parliament in the form of a written Bill and given Royal Assent. Sometimes called primary legislation. See also Secondary legislation... Adoption The legal process by which a highway in private ownership becomes a highway maintainable at the public expense....

Date provision Substitute the date clause in the share purchase agreement (SPA) with the following updated wording to read: This Agreement is delivered on [ insert day and month ] 20[ insert year ] Recitals Recital (B) Remove ‘legal and beneficial’ from Recital (B) entirely. Definitions Revise the following existing definitions set out in clause 1 (Definitions and interpretation) of the relevant precedent SPA (where used in the SPA): Definition of ‘Business’ Replace ‘the City of London’ with ‘[ Edinburgh OR Glasgow OR Aberdeen ]’ instead. Definition of ‘CRTP’ Replace the definition of ‘CRTP’ with the following new definition: CTPRS means Contract (Third Party Rights) (Scotland) Act 2017; Definition of ‘Encumbrance’ Delete ‘assignment’ immediately preceding ‘right of first refusal’, as Scots law uses assignation rather than assignment. Delete ‘legal or equitable’ immediately preceding ‘third party right’, as Scots law does not recognise this separation of ownership...