Delay to register a charge or mortgage

Delay to register a charge or mortgage with Companies House may result your company director being liable to a fine.

What is a charge or mortgage?

When your company give a security for a loan, this transaction must be registered with Companies House with 21 days. The security is called a charge or a mortgage.

Delay to register a charge post a risk to your lenders and creditors. In the event of your company’s going bust or become insolvent, the loan or debt will not be treated as secured loan. This will result in the debts being settled after all the registered secured creditors are being paid. Thus, it is imperative that you register the security on time.

Apply to Court for extension if delay to register a charge or mortgage

Companies House will not be able to extend the 21 days time limit allowed for registering a charge. You must apply to court for an extension. For this reason, do check with your accountant or lawyer if you find yourself in this situation. Companies House would not be able to guide your through the court process.

Who is responsible?

Your company director is responsible to register a charge or mortgage with Companies House. Failure to do so, will lead to your company being fined.

How to file a charge or mortgage

It is important that you register your charge or mortgage as soon as your transaction with your lender completed. For instance, if you borrow money to buy a property, and your lender put a charge on the property. You must register this as soon as possible.

In this case, you would download the correct Companies House forms i.e. the form MR01, from Companies House website. You fill in the form and submit it together with the legal documents evidencing the charge to Companies House within 21 days.

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