Cancel a mortgage or a charge

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 referencePurpose of the form
MR04statement of satisfaction in full or in part of a charge – when your company has partly or fully paid off a charge.
MR05Statement 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 pageTo 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.

Charges and Mortgages forms for company in Scotland

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

Form reference Purpose of filing
MG06s Particulars of a charge subject to which property has been acquired by a company registered in Scotland
MG06s continuation page – amount secured (section 5)to provide amount secured
MG06s continuation page – mortgagee(s) or person(s) entitled to the charge (section 6)to provide mortgagee or person entitled to the charge
MG06s continuation page – short particulars of all the property charged (section 7)To provide short particulars of all the property charged.
466 Particulars of an instrument of an alteration to a floating charge created by a company registered in Scotland.

For limited company with registered office address in either England or Wales, different sets of charges and mortgages forms to use for the filing with Companies House.

Other Companies House compulsory filings

you must also deliver the following documents to Companies House every year:

Security on loan

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.

Registration of charges for Scottish limited company is not exactly the same.

Other Companies House compulsory filings

you must also deliver the following documents to Companies House every year:

Company re-registration forms

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.

Form referencePurpose
RR01Re-register your private limited company (LTD) to a public limited company (PLC)
RR02Re-register your public limited company (PLC) as a private limited company (LTD)
RR03Notice by the COMPANY of application to the court for cancellation of resolution for re-registration
RR04Notice by the APPLICANTS of application to the court for cancellation of resolution of re-registration
RR04 continuation pageThere is a signature continuation page for form RR04
RR05Re-register your private limited company (LTD) as an unlimited company
RR05 continuation pageThere is a signature continuation page for form RR05
RR06Re-register an unlimited company as a private limited company (LTD)
RR07Re-register a public limited company (PLC) as a private unlimited company
RR07 continuation pageThere is a RR07 signature continuation page
RR08Re-register a public limited company (PLC) as a private limited company (LTD) following a court order reducing capital
RR09Re-register a public limited company (PLC) as a private limited company (LTD) following a cancellation of shares

Generally, a private unlimited company do not require to submit company accounts with Companies House. But, they must submit their confirmation statement to Companies House as usual.

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