What should you do having discovered a failure to register a legal charge at Companies House within the statutory time limit of 21 days?
DO ANY OF THE FOLLOWING SCEANARIOS APPLY TO YOU?
If so, you are not alone – we appreciate that this happens to all of us from time to time.
WHAT ARE CONSEQUENCES OF FAILING TO REGISTER A CHARGE AT COMPANIES HOUSE?
If the charge is not registered within the permitted time limit, then serious potential consequences may apply.
The company will remain liable for the repayment of the debt and may be required to immediately repay its full indebtedness to the security lender.
The security lender is also exposed and at risk because the charge is unsecured. The lender will be particularly concerned because if a third party secures rights over your client’s property between the creation of the charge and the actual date when registration is effected, then then those rights, arguably, will take priority over the charge that has not been registered.
The ramifications are serious, especially if the company becomes insolvent.
Unless the position is rectified, the charge is potentially unenforceable by the security lender, and void/unenforceable against a liquidator, administrator, or other creditor of the company.
THE PROCEDURE THAT APPLIES TO OBTAIN AN ORDER FOR REGISTRATION OUT OF TIME
An application must be made to a court that deals with Business and Property Work by filing:
1 A Claim Form and Particulars of Claim under the Civil Procedure Rules.
2 Prescribed Information.
3 A court fee is payable.
4 Submissions will need to be made to the court when your case is listed for hearing.
Failure to comply with these requirements is likely to lead to the court rejecting the application or adjourning the proceedings. This is a general overview of the process. Each set of circumstances are different and will need to be assessed on a case-by-case basis.
HOW CAN WE CAN HELP YOU?
The main thing is not to panic – matters can be resolved if fast and effective action is taken, and we can help you with that process including representation at the hearing – so breathe easy.
DWS Legal have expertise in making successful late registration or rectification of Company Charge applications to the court.
We receive weekly instructions from Law firms from across the country, including lenders, and have saved our clients from professional embarrassment or the cost of defending professional negligence claims.
WHY SHOULD YOU INSTRUCT US?
If you are unfamiliar with the process, we recommend that you instruct us to deal with your case to avoid disappointment.
For example, a prospective client contacted us, but decided to handle the matter without our assistance. They presented the wrong information, and the case was subsequently adjourned. This cost the client a further delay of 6 months, an unhappy insurer, near expulsion from lender panel membership, and substantial legal fees.
We appreciate that the stress and anxiety of trying to correct matters can be all consuming, overwhelming, and may cause sleepless nights.
The good news is that DWS Legal can alleviate that worry through efficient case management from start to finish.
Our team of dedicated Solicitors have dealt with many of these applications and have a proven track record in this field.
We will provide you with bespoke solutions and cost-effective fixed fees to get the result that you want.
Contact a member of the Dispute Resolution Team on 0116 2999 199 or Email us at: firstname.lastname@example.org for further help.
TESTIMONIALS OF OUR SERVICE
“We instructed DWS Legal to help us resolve some difficult issues which had arisen concerning two company mortgages incorrectly registered at Co House by one of our former firm members.
We wanted a specialist firm to deal with the rectification applications at arms’ length and found Mr Austin Ogbata of DWS to be a calm and reassuring presence through the process.
He gave sound advice, kept in close communication, was completely transparent over fees and we obtained the remedies we needed within a reasonable timeframe – a huge relief!
We would not hesitate to recommend DWS Legal and particularly Mr Ogbata to others.”
“On receipt of notice from my client’s bank that its charge had not been registered some months earlier, panic set in. Checking the file and making enquiries I found that my client’s accountant, who had agreed to register the charge, had failed to do so. Looking for help online I found DWS, who immediately reassured me that they could apply for the necessary court order and quoted me a price that I considered very reasonable in the circumstances.
DWS provided accurate paperwork, kept me fully informed throughout, sent clear instructions about further action I needed to take and the relevant timescales, instructed counsel, and managed the whole application with efficiency and kindness. They obtained an order for registration of the charge, resolving my client’s problem with his bank.
I have no hesitation in recommending the team at DWS and thank them for helping me through this stressful situation.”
“We were presented with a difficulty arising from the fact that a trainee solicitor had omitted to register a Charge at Companies House within the requisite time limit for a client company buyer purchasing a buy to let property with a mortgage.
By the time the matter came to light, it was too late to register the Charge at Companies House and it became apparent to us that an application to the Court for leave to register the Charge out of time was required.
As my firm had no previous experience of such applications and as we do not have litigators at the practice, I contacted Austin Ogbata at DWS and instructed that firm to make the appropriate application. I found Austin and his team very reassuring and knowledgeable about the required action both in terms of the legal and practical issues.
We were guided through the process and documents were prepared on our behalf. Austin’s team dealt with the application to the Court and indeed, the Court hearing. The application was granted by the Court and we resolved the issue with the lender.
Needless to say, I am extremely grateful to Austin and his team and I would have no hesitation in recommending his services or to any solicitors who have had the misfortune to find themselves in a similar situation.”
Senior Partner, North East England.