If you do not register a security given for a loan (also known as a charge or a mortgage) with Companies House on time, in the event of the company’s going bust or insolvent the loan or debt will not be treated as secured loan. The debt will be settled after all the secured creditors are being paid. This is risky for the lenders.
Apply to Court
Companies House will not be able to extend the 21 days time limit allowed for registering a charge. Application must be made to the court for the extension.
The company that created the charge and its directors who are in default are liable to a fine.
It is important that the registration of charges for your company is executed as soon as the security on the loan arrangement is completed. This includes acquiring property which is already charged.
The correct Companies House charges and mortgages forms together with the legal documents evidencing the charge must be delivered to Companies House within 21 days.
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