Cancel a mortgage or a charge with Companies House is not automatic. For this to happen, you must submit your application to Companies House. Thereafter, Companies House would remove your mortgage or a charge from the public register.
On the other hand, there is no requirement for your company to inform Companies House that a charge or a mortgage has been paid off. This includes property used as security has partly or wholly released from a charge.
However, It is in your company’s best interest to cancel the charge registered with Companies House as soon as the loan has been paid off. This includes the charge on your property given as security no longer hold.
Ordinarily, potential investors and bankers are interested in this kind of information. They used it as part of their financial assessments whether to invest or lend monies to your company.
Below are the Companies House forms to use to inform the Registrar of companies to cancel a mortgage or a charge that has been paid off.
|Form reference||Purpose of the form|
|MR04||statement of satisfaction in full or in part of a charge – when your company has partly or fully paid off a charge.|
|MR05||Statement that part or the whole of the property charged:|
(a) has been released from the charge
(b) no longer forms part of the company’s property
|MR05 continuation page||To provide description of instrument, short particulars of the property or undertaking charged and description of assets or property, if any.|
Besides taking care of your mortgage registration, your company must also deliver confirmation statement and yearly accounts to Companies House promptly.