A legal charge is also known as a secured loan. It is a legal document signed by you, the borrower, which is registered against the property at the Land Registry.

It protects the money that the bank or a lender has lent to an individual or a company, and gives the lender the power of sale over the property, should the repayments not be met or there is an event of default. The legal charge will also notify any potential buyer of the existence of the debt.