Release or satisfaction?
| What happened | What to tell Companies House |
|---|---|
| The loan is repaid in full | The charge is satisfied in full. See clearing a charge from the register. |
| Part of the loan is repaid, and the security continues | The charge is satisfied in part |
| The lender releases a property, but the loan continues | Property released from the charge |
| The company sells a charged asset and the loan continues | Property no longer part of the company’s property |
The law treats these as separate cases, and the register records each differently2.
Common examples
- Selling one of several properties. A property company has a portfolio loan secured on three flats. It sells one, the lender agrees to release it, and part of the sale price reduces the loan. The charge still covers the other two.
- Swapping security. A lender releases a fixed charge over a vehicle the company is replacing, keeping its security over everything else.
Check your company’s dates and set a reminder
Search the Companies House register. Your company page shows its filing dates, what to file next and a reminder you can set.
Describing the part released
If only part of the property is released or has left the company, the statement includes a short description of that part2, such as the property’s address and title number. The charge is identified by its code, or for a charge from before 6 April 2013 by its date, document and property2.
Why it matters
A buyer of property that has been sold out of a charge wants the register to show that the company’s lender no longer has security over it. Get the lender’s deed of release and file the statement soon after completion, so the next due-diligence check doesn’t stall on it.
Filing the statement
Fileyear’s property release filing lists the company’s outstanding charges from the register, asks whether property was released or has left the company, and in full or in part, and files form MR05.