Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Priority definition

What does Priority mean? Priority describes the order in which competing proprietary rights and security interests take effect against an asset and the sequence in which secured creditors are paid on enforcement or insolvency. It is a cross‑context concept informed by statute and case law (for example, land registration legislation, companies legislation on registration of charges, and equitable rules on notice). In practice, priority is usually set by time and method of perfection: creation and registration of mortgages/standard securities over land (e.g. under the Land Registration Act 2002 in England and Wales and the 2012 Scottish legislation), registration of company charges (at Companies House under...

UK Ship Register: ship mortgage registration, priority rules and priority notices; comparison with Companies House and consequences of failure to register

Published by a LexisNexis Banking & Finance expert

Practice notes

Registration can have an important effect on the priority of competing security interests

In broad terms, two registration frameworks exist:

recording against the secured asset; and
recording against the person granting the security

This Practice Note deals with the former, where the collateral is a ship on the UK register. It provides a concise overview of the statutory regime for ship mortgages and then sets out how registration influences the ranking of competing security interests over vessels.

For guidance on how filing against other asset classes affects priority, see the following Practice Notes:

Effect of registering security at hm land registry or the Land Charges Department on priority of security interests
Effect of registering security on the UK Register of Aircraft Mortgages on priority of security interests
Effect of registering security at the IP registries on priority of security interests

Note that most security interests created by a company incorporated and registered under the Companies Act 2006 (CA 2006) require registration at companies house to be effective...

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Web page updated on 22/05/2026

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