Repayment Charge (Registered Social Landlords) - Example Deeds

General

Tenement management schemes provide for the management and maintenance of common and shared areas within a tenement (including the solum, roof, foundations, and external walls).

Registered social landlords who own at least one flat in a tenement under such a scheme, and who have paid a private homeowner's share of scheme costs by enforcing a scheme decision, may make a charge in favour of itself to recover such costs.

Such repayment charges, and discharges of same, are registrable under regulation 9 of the Registered Social Landlords (Repayment Charges) (Scotland) Regulations 2018, and must be in the form prescribed by the schedule to the same. The amount to be repaid must not exceed £10,000, and there must be of no fewer than five and no more than thirty equal annual payments.

Such repayment charges are a form of charging order and should be entered into the securities section of the relevant title sheet.

Useful links

Charging Order (Building (Scotland) Act 2003)

Charging Order (HASSASSAA)

Charging Order (Repayment Charge)

Ranking

Repayment charges (Registered Social Landlords) have priority over all future burdens and encumbrances on the same property, and all existing burdens and encumbrances on the same property. Exceptions to this rule include any charges created or arising under:

Any local Act authorising a charge for recovery of expenses incurred by a local authority;
Schedule 9 of the Housing (Scotland) Act 1987;
Section 172 of the Housing (Scotland) Act 2006;
Any Act authorising advances of public money.

Repayment Charge (Registered Social Landlord) - Statutory style

We (1)……………………………………………….., in exercise of the power conferred on us by regulation 2 of the Registered Social Landlords (Repayment Charges) (Scotland) Regulations 2018, CHARGE the subjects described in the schedule with a repayable amount of (2)………………………. sterling, payable in (3)..................... equal annual instalments of (4)…………..………, the first instalment being payable on
(5)……………………in 20……. and subsequent instalments on the same date in every succeeding calendar year IN WITNESS WHEREOF (6)

SCHEDULE

DESCRIPTION OF SUBJECTS (7)

Notes for guidance

1. Insert the name and address of the registered social landlord.
2. Insert in words the repayment amount.

3. Insert the number of equal instalments, being no fewer than 5 and no more than 30.

4. Insert the amount of the annual instalment.
5. Insert a date after the making of the charge for the first instalment to be paid.
6. The deed should be executed here and at the end of the Schedule.
7. Insert a full description of the subjects by reference to the postal address and, as appropriate, either

(a) a competent conveyancing description to enable recording in the General Register of Sasines, or
(b) the registered title number to enable registration in the Land Register.

Discharge of Repayment Charge (Registered Social Landlord) - Statutory style

We (1)……………………………………………., DISCHARGE the Repayment Charge made by us on (2)………………………. over the subjects (3)........................ and [either] (4) registered in the Land Register under Title Number (5).................. on (6).................. [or] (4) recorded in the Division of the General Register of Sasines for the County of (7) …………..……… on (8)..................... IN WITNESS WHEREOF (9)

Notes for guidance

1. Insert the name and address of the registered social landlord.
2. Insert the date of execution of the original Repayment Charge.

3. Insert the postal address of the subjects.

4. Delete as appropriate.
5. Insert Title Number in Land Register.
6. Insert date of registration of Repayment Charge.
7. Insert name of County in the General Register of Sasines.

8. Insert date of recording of Repayment Charge in the General Register of Sasines.
9. The deed should be executed here.

Guidance

If the repayment charge or discharge of repayment charge submitted does not appear to conform to the prescribed style, the application should be referred for rejection on the basis that the registrable deed is not valid because it does not conform to the prescribed form.