Land Charges Act

• There is a limited number of interests registerable under the Land Charges Act, but which are legal in nature.
• If an interest in the land is legal, then it will automatically bind the owner of the estate.

  • However the legal interests which exist under the Land Charges Act wold be void and inapplicable if they are not registered.
• Legal interests may include:

  1. Puisne Mortgage
  2. Charge for Inheritance Tax
• Puisne Mortgage

  • Type of mortgage where the lender will not have possession of the title deeds.
  • This is unlike the usual process where the lender will often take possession of the deed to the property for which they are the mortgagee.
• Charge for Inheritance Tax

  • Where there may be a charge for inheritance tax on a particular property, that will act as a legal interest in that particular piece of property.
  • When this is in relation to unregistered title, it will be registerable by HMRC under the Land Charges Act.
• The land charges lists a great number of equitable interests in land registerable under the system.
• The legislation itself divides these into classes A-F with a variety of different interests in each.

  • Classes A-F include every interest in the Land Charges Act.
• Appendix D of the Government Land Charges Application document lists the interests and their class.
• Class A

  • Land Charge imposed by statute pursuant to an application e.g. under the Drainage Act 1976.
• Class B

  • Land Charge imposed automatically by statute e.g. Legal Aid Act 1974.
• Class C

  • (C)(i) - Puisne Mortgage (legal).
  • (C)(ii) - Limited Owners Charge.
  • (C)(iii) - General Equitable Charge.
  • (C)(iv) - Estate Contract.
• Class D

  • (D)(i) - Inland Revenue Charge (Can include charge for inheritance tax and as such is legal).
  • (D)(ii) - Restrictive Covenants
  • (D)(iii) - Equitable Easements
• Class E

  • Annuity
• Class F

  • Protection of spouse's or civil partner's rights under the Matrimonial Clauses Act.