A legal charge on property refers to a mortgage on land, buildings or other assets, explains Fortune Law. Legal charges arise from agreements that give lenders an interest over a borrower's assets. A legal charge does not confer ownership rights.Know More
Legal charges are a method of securing debts, notes Fortune Law. However, these instruments do not give creditors ownership rights over land or any other property used as collateral. Instead, they legally limit what a borrower can do with the asset in question. If the borrower reneges on the terms of the agreement, a lender has the right to enforce the legal charge. Under certain circumstances, the lender can enforce the agreement without going through a court.
There are two types of legal charges, explains Company Law Club. A fixed charge is created on specific assets such as land and buildings. A floating charge, on the other hand, is created on all current and future assets that a borrower owns. Unlike fixed charges, floating charges allow companies to exploit assets securing a debt in the course of their operations without constantly seeking consent from the lender.
Floating charges are typically the preserve of select individuals and corporations -- limited liability partnerships, companies, and under certain circumstances, farmers, warns Fortune Law.Learn more about Credit & Lending
The loan-to-value ratio on a mortgage is a comparison of the total mortgage amount to the value of the property, according to Investopedia. If a loan is for $180,000, and the property's assessed value is $200,000, the loan-to-value ratio is 90 percent.Full Answer >
A mortgage is essentially a loan, usually given by a bank, to provide individuals and families with funding to secure housing. Mortgages fall into the larger category of financial loans, but are specifically designed for real estate. Mortgages contain several different components, which include collateral, principal, taxes and insurance.Full Answer >
To refinance your mortgage, locate a lender with services that match your financial goals, and upon identifying the lender, complete an application, which requires current income statements, home value, credit scores, current debts and desired loan amount. Upon acceptance, review and agree to loan terms.Full Answer >
To pay off your mortgage faster, buy a home you can afford, get a shorter mortgage, set a date to pay off the mortgage and make biweekly payments. Try to reduce your expenses and find ways to increase your earnings.Full Answer >