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Legal charge / restriction

Legal charge or restriction or caution

Where a facilities grant is given for a sum of £100,000 or over, the Foundation will need in most cases to take a first charge (mortgage) over the premises on which the facilities are located. You will need to supply us with evidence that you own the freehold of the premises, or that you have a lease of the premises with a minimum remaining term of 21 years.

1. If you are a public authority, local authority or parish council, and are unable to charge your premises to us, we will place a restriction on the title to the premises at the Land Registry, which prevents you selling or letting the premises without our knowledge or consent. You will need to locate the deeds for the premises.  If the premises are registered, we will need to see the Land Registry title number. If the premises are not registered, we will not be able to enter a restriction on the title, but will enter, at the Land Registry, a caution against first registration, which will prevent you letting or disposing of the premises in the same way.

2. We recommend you start putting together the following information which we and our solicitors will need to see as part of your application:

  • Find out where the deeds for the premises are held.  If the premises are registered, we will need the Land Registry title number.  If the premises are not registered at the Land Registry, we will need to see copies of the title deeds. If you have a lease, we will need to see a copy of it. 

  • Are the premises already charged to another funder? We will need to consider whether we can still proceed with the grant, as we usually need to take a first charge over the premises, which normally means that any other loans will need to be repaid before our grant can be made.

  • Are you getting funds from other sources in connection with your project? If other funders are also requiring a charge over your premises, we need to know.

  • We will also need to see a copy of the planning permission for the project

  • If you are a club, please locate a copy of your constitution as our solicitors will want to check this. You may need to check that your constitution allows you to grant a legal charge

  • If you do not already have solicitors, you should consider who you would want to appoint to act for you as you will need a solicitor to liaise with our solicitors to do the necessary legal work to ensure that the correct documentation is put in place.

 

3. Our solicitors have prepared a guidance note for you to give to your solicitors if you are awarded a grant, which explains what legal work is required and the fees we will need you to pay. Please note that in addition to paying your solicitor’s fees, you will also need to pay our legal fees and further information is set out in the Guidance Note for Solicitors. Some of your legal fees can be reclaimed, and you can contact your regional Investment Programme Manager for more information on this.