By securities we mean the legal documents that result from putting land or property up for security against a loan- the most obvious example being a mortgage for a normal house purchase.
Although security deeds may include personal loan agreements and personal guarantees a Standard Security is the only form of fixed security over heritable property in Scotland. A Standard Security must be in writing and in one of the two forms as prescribed by the Conveyancing & Feudal Reform (Scotland) Act 1970. A Standard Security is not created until it is either registered in the Land Register of Scotland or previously in the General Register of Sasines. If the granter of the Security is a company the Standard Security must also be registered with the Registrar of Companies within 21 days of its date of creation.
At Mitchells Roberton our specialist property solicitors can explain to you the terms and conditions of any Standard Security before the security is signed so you will be fully aware of the consequences of signing a security. A Standard Security is an extremely important deed for both the Borrower and the Lender, as if the grantor of a Standard Security defaults, the security holder may acquire a right to enter into possession of the security subjects, to collect rents, lease the subjects, obtain a right to enter the security subjects to repair or maintain them and the power to apply to the court to sell the security subjects. It is therefore imperative that sound legal advice is obtained at the earliest opportunity.
Our experts can also help with the following:
The Discharge of a Security
Our property team can further assist you when at last you find yourself in the fortunate position of having paid off your mortgage. Discharging a mortgage is a legal process which requires instructing a solicitor to prepare a deed called a Discharge. You do not need to immediately discharge a security when you have redeemed your loan in full but most clients want to clear the title to their home of the security. In order to achieve this we order the title deeds from your lender, prepare the Discharge and send it to the lender to have it signed or sealed. When we receive the executed deed back from the lender we will send it to be registered in the Land Register of Scotland. The effect of this is that the deed removes the Standard Security over your property and the Land Registers’ records will then show that your property is mortgage free.
Free Storage Service for Title Deeds.
Once the Standard Security over your property has been discharged the lender no longer requires to retain your title deeds.Most clients prefer that their title deeds are kept in a safe and secure place and we offer our clients a free storage service. This avoids title deeds being misplaced at home, although if deeds are lost copies may be obtained from the Land Register which are just as effective as the real thing.
Deeds of Variation
We can guide clients through varying the terms of an existing Standard Security. The purpose of any variation is to alter the provisions of a Standard Security but it cannot be used to discharge, assign or restrict a Standard Security or to add land to the security. The normal circumstances when a Deed of Variation may be required is where a couple are getting married and they want the property and the security to be in joint names or when the reverse may happen where a couple split up and the property initially in joint names is being transferred into the name of one party only and the security has to varied accordingly.
House Purchase Deposits
In this difficult financial climate many parents or kind family members are helping the next generation onto the property market by providing a house purchase deposit. If that gift is not a loan then one might want to protect that money. A number of security documents need to be prepared to protect it and we can do that at a relatively low cost. Please just ask for a fee quotation. Our friendly and approachable solicitors are here to help .
At Mitchells Roberton we also act for institutional Lenders preparing and reviewing the general raft of legal papers required for all the different elements of legal work.
Mitchells Roberton are a panel solicitor for all major lenders in the UK.