Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Equitable charge definition

What does Equitable charge mean? An equitable charge is a form of security by which specified property is made available to satisfy a debt or other obligation, without transferring legal title or creating a legal mortgage. In practice it is used over land, shares and other assets, commonly where the parties intend security but the formalities for a legal charge are not met, or where security is taken over an equitable interest. It is a descriptive, case law-derived concept; some statutes (for example on charging orders) treat the order as creating an equitable charge. Key features include: no conveyance of the legal estate;...

Equitable v legal mortgages and charges over registered land: power of sale, overreaching and priority—Swift 1st v Colin; HM Land Registry Practice Guide 75 (England and Wales)

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Practice notes

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This Practice Note examines the position of a security holder with an equitable mortgage or charge over land, and focuses on powers available to effect a sale of the charged property. It relates only to registered land.

Mortgages and charges over land—a recap

Security over land can be taken by way of mortgage or charge.

Mortgage

A mortgage may take one of two forms: legal or equitable.

Legal mortgage of registered land

A legal mortgage of registered land (whether the estate is freehold or leasehold) is created by either:

a charge by deed expressed to be 'by way of legal mortgage' (commonly referred to as a 'legal charge') (section 85(1) of the Law of Property Act 1925 (LPA 1925) (freehold) or LPA 1925, s 86(1) (leasehold)); or
a charge at law of the registered estate to secure the payment of money (section 23(1)(b) of the Land Registration Act 2002 (LRA 2002)).

This power was introduced by section 25(1) of the Land Registration Act 1925 (LRA 1925) and its equivalent provision is now in LRA 2002, s 23(1)(b), which only applies to registered land.

Note: The power to create a mortgage at law (legal mortgage) by a demise (freehold) or sub-demise...

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Web page updated on 22/05/2026

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