PART 3Valuation

Valuation (charges)8.

(1)

On an application for registration of a charge, the amount of the charge is—

(a)

where the charge secures a fixed amount, that amount,

(b)

where the charge secures further advances and the maximum amount that can be advanced or owed at any one time is limited, that amount,

(c)

where the charge secures further advances and the total amount that can be advanced or owed at any one time is not limited, the value of the property charged,

(d)

where the charge is by way of additional or substituted security or by way of guarantee, an amount equal to the lesser of—

(i)

the amount secured or guaranteed, and

(ii)

the value of the property charged, or

(e)

where the charge secures an obligation or liability which is contingent upon the happening of a future event (“the obligation”), and is not a charge to which sub-paragraph (d) applies, an amount equal to—

(i)

the maximum amount or value of the obligation, or

(ii)

if that maximum amount is greater than the value of the property charged, or is not limited by the charge, or cannot be calculated at the time of the application, the value of the property charged.

(2)

Where a charge of a kind referred to in paragraph (1)(a) or (1)(b) is secured on unregistered land or other property as well as on a registered estate or registered charge, the fee is payable on an amount calculated as follows—

ValueoftheregisteredestateorregisteredchargeValueofallthepropertycharged×Amountofthechargemath

(3)

Where one deed contains two or more charges made by the same chargor to secure the same debt, the deed is to be treated as a single charge, and the fee for registration of the charge is payable on the lesser of—

(a)

the amount of the whole debt, and

(b)

an amount equal to the value of the property charged.

(4)

Where one deed contains two or more charges to secure the same debt not made by the same chargor, the deed is to be treated as a separate single charge by each of the chargors and a separate fee is payable for registration of the charge by each chargor on the lesser of—

(a)

the amount of the whole debt, and

(b)

an amount equal to the value of the property charged by that chargor.

(5)

In this article “value of the property charged” means the value of the registered estate or the amount of the registered charge or charges affected by the application to register the charge, less the amount secured by any prior registered charges.