Statutory charge meaning

Scope of this Checklist This Checklist sets out the points to consider when a company is proposing to grant a mortgage. It proceeds on the basis that an English or Welsh company will be granting a mortgage to a lender situated in England or Wales. In this Checklist: the company granting the mortgage is the 'mortgagor' the party to whom the mortgage is granted is the 'mortgagee' the document recording the mortgage is the 'security document' Preliminary questions before taking security by way of a mortgage Is a mortgage the right method of taking security? A mortgage transfers title to the asset, while preserving the mortgagor's equity of redemption so that, once sums due have been paid in full, title can be transferred back to the mortgagor (note that some mortgages, such as over land, are statutory, meaning there is no transfer of title). The use and possession of the asset will remain with...

This Checklist sets out the trigger points and timescales for serving a landlord’s certificate and a former landlord’s certificate under the Building Safety Act 2022 (BSA 2022), together with the consequences of failing to meet the relevant statutory duties. For full guidance, see Practice Notes: Building Safety Act 2022—landlord’s certificate Building Safety Act 2022—landlord and tenant issues In England, the prescribed requirements for landlord’s certificates are contained in the Building Safety (Leaseholder Protections) (England) Regulations 2022, SI 2022/711, regs 1 and 6, as amended from 5 August 2023 by the Building Safety (Leaseholder Protections etc) (England) (Amendment) Regulations 2023, SI 2023/895, regs 10, 11 and 13. All references to SI 2022/711 are, accordingly, to those regulations as amended. Trigger events and timing Has the current landlord (as described in SI 2022/711, reg 1(3) as the ‘person who is the landlord under a lease of premises in a relevant building’) implemented a process to ensure a landlord’s certificate is supplied...

Repair under the common law Under the common law, a landlord, relative to a tenant, bears notably heavy duties regarding upkeep and repair of the leased premises, see Practice Note: Repair clauses in commercial leases in Scotland—Repair under the common law. Within commercial leasing, landlords will almost invariably aim to exclude all such common law repairing liabilities for the demised premises, though not for common areas in multi-let buildings; see Practice Note: Service charge and outgoing provisions in commercial leases in Scotland. Consequently, tenants usually shoulder substantial repair commitments. The prevalent model is the full repairing and insuring (FRI) lease, under which the tenant assumes responsibility for repairs of every kind save for damage arising from insured risks; see Practice Note: Repair clauses in commercial leases in Scotland—Contracting out of the common law—the full repairing and insuring (FRI) Lease and The modern commercial lease: Stair Memorial Encyclopaedia [466]...

This Checklist is applicable when acting for the mortgagee in relation to the taking of a ship mortgage and where the security will be registered in the UK. Request a Transcript of Registry from the UK Ship Register to confirm the vessel’s security status. A charge applies for this and for several other documents noted below; the complete schedule can be found on the UK Ship Register website, and a full list is available there. The mortgagee should verify that the owner holds clear, unencumbered legal title to the ship and that their ownership has been correctly recorded, and confirm that it has been properly registered. Perform a Register of Companies search to confirm the owner’s incorporation in England and Wales. Ascertain whether any mortgages or charges concerning the ship are filed against the owner pursuant to Section 859A of the Companies Act 2006 (CA 2006), and confirm registrations relate to the ship...

Trump approved the order on the evening of 20 February 2026, introducing a 10% levy due to apply from 24 February 2026 until 24 July 24 2026 under section 122 of the Trade Act of 1974 (TA 1974). Under this provision, the President may impose a baseline tariff of up to 15% on every country for no more than 150 days, unless Congress authorises a longer period. Many classes of products are carved out from the section 122 charge, covering imports already facing particular sectoral duties, plus items not widely produced at home, including food, books and textiles, per a White House fact sheet. On 21 February 2026, Trump posted on Truth Social that he would promptly lift the Section 122 tariff to the statutory ceiling of 15%, immediately and in full as announced there...

In this issue: Commercial real estate finance Leasing property Property management Residential tenancies Statutory compliance Property in Wales Additional property updates this week LexTalk®Property: a Lexis®Nexis community Daily and weekly news alerts New and updated content Trackers Commercial real estate finance Deliberate and unauthorised deed alteration renders legal charge void In Boult v Together Personal Finance Ltd [2026] EWHC 809 (Ch), the Chancery Division overturned the County Court at Cardiff, finding that the rule in Pigot’s Case rendered a legal charge void. The appeal turned on whether a unilateral, material change to a deed made after execution—without the other party’s knowledge or consent—invalidates it under the 400‑year‑old Pigot principle. The respondent, Together Personal Finance Limited, had lent money to the appellant, Ms Myranna Boult, secured against her property, and later commenced possession proceedings. Ms Boult maintained that the charge had been amended in manuscript post‑execution to incorporate an additional property without her...

In this issue: Property management Investigating title Environment, energy and buildings Residential property Statutory compliance Property in Scotland Property in Wales Transferring property Property insolvency Property taxes Additional property updates this week Daily and weekly news alerts Trackers New Q&As Property management Second edition of RICS service charge standard The Royal Institution of Chartered Surveyors (RICS) has released the second edition of its professional standard on service charges in commercial property. Compulsory for all RICS-accredited practitioners and aimed at UK property managers and occupiers, it seeks to lift standards and foster greater transparency, fairness and consistency in service charge management and administration. The revision addresses key challenges, including issuing budgets and year-end certificates promptly, works to reduce causes of disputes between landlords and tenants, and offers clearer guidance on resolving disagreements. It also aids the negotiation, drafting, interpretation and operation of leases, ensuring alignment with recognised industry best practice....

What is a service charge? A service charge is a sum a tenant may have to pay to a landlord under a commercial lease to reimburse the landlord for services they provide in connection with the common parts and for the upkeep of the property. Commonly, this applies where multiple tenants occupy one property, for example a shopping centre, and the landlord looks after the communal parts of the building for everyone’s benefit. In most contemporary leases the tenant pays the service charge on account, before the landlord incurs the expenditure, calculated from an estimate of the next year’s costs. At the close of the accounting period a reconciliation is prepared and any shortfall or surplus is settled by or to the tenant. Sometimes, earlier forms of lease stipulate that the landlord must meet the outlay first. For more detail on service charges ordinarily charged to tenants of multi-occupied buildings by commercial landlords in Scotland, see Practice Note: Service charge and outgoing provisions in commercial leases in Scotland. ...

The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) imposes a statutory duty on employers in all industries to pass on to workers, without deductions, every tip, gratuity and service charge they receive or over which they hold control or material influence (qualifying tips), and to ensure distribution is fair and transparent. While it leaves untouched the rules on the taxation of tips, gratuities and service charges, its purpose is to guarantee that customer payments of this kind are allocated to workers. The Act is reinforced by a statutory Code of Practice on Fair and Transparent Distribution of Tips, together with non-statutory guidance. For further detail on the legal framework governing the payment and allocation of tips, gratuities and service charges, see Practice Note: Allocating tips, gratuities and service charges to workers. That Practice Note considers the tax treatment of tips and commission, which remains unaffected by E(AT)A 2023. The basic position is that both tips and commission, irrespective of...

Variation of Will or intestacy after death—Q&As An instrument of variation can be used to alter how a deceased person’s estate is distributed under a Will or on intestacy. It is commonly executed by deed. To secure effectiveness—typically to obtain favourable inheritance tax (IHT) and capital gains tax (CGT) treatment under section 142 of the Inheritance Tax Act 1984 (IHTA 1984) and section 62(6) of the Taxation of Chargeable Gains Act 1992 (TCGA 1992)—certain formalities must be met. These include that the deed is in writing, contains the requisite statement applying the statutory provisions, is not made for any extraneous consideration, and is signed by all relevant parties, including the deceased’s personal representatives (PRs) where additional tax would otherwise arise. For guidance on deeds of variation, see Practice Note: Variation of Will or intestacy after death. See also Practice Note: Post-death rearrangements. Compliance with these requirements will usually deliver the intended IHT and CGT position. The formalities for execution of variation should be followed accordingly. Precedent deed of variation...

This Agreement is entered into on [ insert date ] of [ insert month ] [ insert year ] by and between: [ insert name ], of [ insert address ] (' Council '); [ insert name ], of [ insert address ] (' County Council '); [ insert name ], a company duly incorporated and registered in [ insert details ] under number [ insert details ], whose registered office is at [ insert address ] (' Developer '); [ Additional parties as necessary eg owner, landlord, mortgagee, option holder etc. ] (' [ insert additional parties as necessary eg owner, landlord, mortgagee, option holder etc ] '). Recitals The Council is the local planning authority for the purposes of section 106 of the 1990 Act for the area within which the Land is situated and is the body by whom the obligations contained in this Deed are enforceable. The County Council is the local highway...

This Deed is made on [ insert day and month ] 20[ insert year ] Parties [ Insert name of Chargor ], being a company incorporated in England and Wales, with registered number [ insert company number ], and whose registered office is at [ insert address ] (the “ Chargor ”); and 1 [ Insert name of Security Agent ], acting as security agent and trustee for the Finance Parties pursuant to the terms and conditions set out in the [ Facilities Agreement OR Intercreditor Agreement OR Security Trust Deed ] (the “ Security Agent ”). Recitals: (A) The Finance Parties have consented to provide loan facilities subject to the terms and conditions set out in the Facilities Agreement (as defined below). (B) As a condition precedent to the loan facilities becoming available, the Chargor must execute this Deed for the purpose of granting security in favour of the Security Agent in relation to the Secured Obligations (as defined below)...

This Deed is executed on [ insert day and month ] 20[ insert year ] Parties [ insert name of Chargor ], a company incorporated in England and Wales with registered number [ insert company number ], with its registered office at [ insert address ] (the Chargor); and [ insert name of Lender ] of [ insert address ] (the Lender). Recitals: The Lender has agreed to provide a loan facility to the Chargor on the terms and conditions contained in the Facility Agreement (as defined below). As a condition precedent to the availability of that facility, the Chargor must enter into this Deed to create security in favour of the Lender for the Secured Obligations (as defined below)...

It is assumed for the purposes of this Q&A that the refusal of consent concerns an alienation application (ie a proposal to assign/underlet/charge/part with possession). If, however, the matter instead relates to alterations, the position will need to be reconsidered, as distinct case law and statutory provisions govern that topic. As a useful starting point for that subject, see: Alterations and improvements for property disputes lawyers—overview. Unreasonable withholding of consent As set out in Practice Note: Landlord's consent to assign or underlet, the High Court in Ansa Logistics v Towerbeg confirmed that consent to assign/underlet cannot normally be withheld merely because a landlord is able to point to a breach of covenant. The key question is whether the particular breach is of such a character or seriousness as to warrant the refusal of consent...

This Q&A considers a landlord’s ability to deal with their premises following service of a notice under section 13 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993). Once a section 13 notice is served, a statutory process begins that enables flat tenants to act together to buy the freehold of their building. The rights created by that notice ought to be safeguarded by entering an agreed or unilateral notice on the freehold title, or, where the landlord’s title is unregistered, by registering a class C(iv) land charge...

A buyer for value of land burdened by a legal or equitable rentcharge in favour of a charity will take subject to that rentcharge, unless: the rentcharge is registrable as a land charge and is void against him for want of registration (see sections 2 and 4 of the Land Charges Act 1972; section 24 of the Law of Property Act 1969; section 2(1)(i) of the Law of Property Act 1925 (LPA 1925)); the sale is made in exercise of powers under the Settled Land Act 1925 (SLA 1925) and the rentcharge is capable of being overreached on such a sale (see SLA 1925, s 72; LPA 1925, s 2(1)(i)); or for an equitable rentcharge, the purchaser had no notice of it (Re Alms Corn Charity, Charity Comrs v Bode). Also note that, depending on the date of the rentcharge, the Rentcharges Act 1977 provides that, since 22 August 1977, only certain types of rentcharges can be created (Permitted Rentcharges). For more...