Legal Charges on Commercial Property: What Owners Need to Know
For commercial property owners in Brighton and Hove and across Sussex, understanding legal charges is essential. Whether you are buying, selling, or refinancing, a legal charge can mean the difference between a smooth transaction and a costly delay. At Acumen Law, our expert solicitors regularly advise clients on how to manage and remove these charges.
What is a Legal Charge?
A legal charge is a form of security interest registered against a property, usually by a lender. It ensures that debts such as mortgages or loans are repaid before the property can be sold or refinanced. In simple terms, if you have borrowed money against your property, the lender holds a charge until the debt is cleared. This gives them the right to recover their funds if repayments are missed.
Legal charges are not limited to banks. They can also be applied by private lenders, business partners, or even local authorities if unpaid obligations such as unpaid tax arrears or planning enforcement penalties.
Why Do Legal Charges Matter for Commercial Property Owners?
For business owners and investors, a legal charge is more than a financial formality, it can directly affect liquidity, business growth, and the value of your asset. A charge on a property may delay sales, deter potential buyers, or restrict refinancing options. Left unresolved, it can leave you holding an asset that cannot be leveraged or sold, reducing your financial flexibility.
How to Remove a Legal Charge
If you need to free your property from a legal charge, there are several key steps:
- Settle the debt – The most straight forward way to remove a charge is to pay off the underlying debt. Whether it is a mortgage, secured loan, or another financial obligation, clearing the balance is essential.
- Request a redemption statement – Contact the lender to request a final statement outlining the exact amount required to settle the charge. This will include outstanding capital, interest, and any exit fees.
- Apply for charge removal – Once the debt is repaid, the lender should provide a discharge document (often a DS1 form). This must be submitted to HM Land Registry to formally remove the charge.
- Seek legal assistance – Some charges, particularly those involving private lenders or local authorities, may require negotiation or specific conditions to be met before removal. Instructing solicitors can streamline the process, ensuring steps two and three are handled correctly and efficiently.
Legal charges on commercial property may seem like another technicality but understanding how they work, and how to remove them, can save you time, stress, and money. For property owners in Brighton and Hove and across Sussex, obtaining expert legal advice ensures you take the right steps at the right time.
If you are dealing with a legal charge and need guidance, Acumen Law’s team of expert Solicitors in Brighton and Hove are here to help. Contact us on 01273 447 065 or email to speak with one of our specialists.
