Deed of Further Charge (Without Possession)

What the document does

The Deed of Further Charge (Without Possession) records an additional loan from a mortgagee to a mortgagor and secures repayment against the property described in its schedule. It refers to an earlier registered mortgage and provides spaces for the earlier deed, registration details, additional loan amount, interest rate, repayment period and property particulars.

The deed states that possession of the mortgaged property remains with the mortgagor. The mortgagor acknowledges receiving the additional loan and agrees to repay the principal with interest.

Who it affects

The Deed of Further Charge (Without Possession) directly affects the property owner who borrows the additional amount and the mortgagee who provides it. Its definitions also extend to their respective heirs, executors, administrators, legal representatives, nominees and assigns.

A buyer or professional examining the scheduled property should note that the deed creates a further financial charge over it. The mortgagee may exercise remedies against the property if the secured amount becomes payable and is not repaid.

Main terms in the template

• The mortgagor declares sole and valid ownership of the scheduled property and states that there is no other mortgage, charge or encumbrance over it.
• Interest must be paid monthly by the date entered in the completed deed.
• The principal must be repaid within the period entered in the deed, or earlier.
• The amount may become repayable on demand, subject to the period and notice details inserted in the deed.
• If payment becomes due, the mortgagee may exercise powers under the Transfer of Property Act, 1882, without losing the right to seek sale of the property through a suit.
• If a sale does not produce enough to cover principal and interest, the mortgagor must personally make good the balance from other properties.
• Any surplus remaining after sale costs, interest and principal are deducted must be paid to the mortgagor.
• The mortgagor must keep property taxes and other charges paid and must not allow the security to be impaired.
• Notices sent or left at the mortgagor's address stated in the deed are treated as properly served.

Information requiring completion

The Deed of Further Charge (Without Possession) contains blanks for the parties, identification and mobile numbers, loan and interest terms, earlier mortgage details, market value, property schedule, signatures and witnesses. The supplied text is therefore a form rather than a completed transaction record.