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.
Purpose of the form
statement of satisfaction in full or in part of a charge – when your company has partly or fully paid off a charge.
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
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To provide description of instrument, short particulars of the property or undertaking charged and description of assets or property, if any.
Charges and mortgages forms for a company with a registered office address in Scotland must register the security on loan and borrowings with Companies House.
Companies House requires company in Scotland to use the correct charges and mortgages forms to register the security on loan.
Companies House rejecting your charges and mortgages forms registration if you submit the incorrect form. Click here for the common errors made by applicants when writing their company names on the Companies House forms.
The time allowed for registration is within 21 days.
Charges and mortgages forms
Purpose of filing
Particulars of a charge subject to which property has been acquired by a company registered in Scotland
UK company law requires a limited company to register the security they give for their loan and borrowing with Companies House.
The purpose of the registration is to ensure its security in the event of a liquidation. Companies House refers the security for a loan as a charge or mortgage. The registration of a charge or mortgage can be by your company or your lender or your lender’s agent.
When registering a charge or a mortgage, your company is required to complete the relevant Companies House Charges and Mortgages Forms. Your company must submit the completed form together with the original document for proof of the security to Companies House.
There are consequences for failing to register the security within the 21 days.
Charges must be registered with Companies House
limited company incorporated in England, Wales and Northern Ireland must register the following charges with Companies House. Therefore, you must register a charge on or for:
On land or any interest in land, other than a charge for any rent or other periodical sum issuing out of the land.
Created or evidenced by an instrument which, if executed by an individual, would require registration as a bill of sale.
A charge for the purposes of securing any issue of debentures.
The uncalled share capital of the company.
Calls made but not paid.
A charge on book debts of your company.
A floating charge on the company’s property or undertaking.
A ship or aircraft, or any share in a ship.
A charge on the goodwill or on any intellectual property.
Company re-registration forms to register your company from exisitng status to another. For example, to re-register from a limited company to a public limited company. Ensure you download the company re-registration forms from Companies House website for the type of company re-registration you would like to execute.
Companies House would reject incorrect or incomplete forms. Click here for the common errors made by applicants when writing their company names on the Companies House forms.
Contact our accountants if you are not familiar with company re-registration law. They would be able to assist you.