Legal Charge

A form of security interest over land created by deed and registered at the Land Registry. A legal charge gives the chargeholder the right to apply to the court for an order for sale if the debt is not repaid. It takes priority over most subsequent interests in the property.

In practice

A charging order, once made final and registered, operates as an equitable charge rather than a legal charge. However, the creditor can still apply for an order for sale under section 14 of the Trusts of Land and Appointment of Trustees Act 1996. Mortgage lenders typically hold legal charges, which rank ahead of charging orders.