Section 49 — Land Registration Act 2002: Tacking and further advances

Tacking and further advances 49 1 The proprietor of a registered charge may make a further advance on the security of the charge ranking in priority to a subsequent charge if he has not received from the subsequent chargee notice of the creation of the subsequent charge.

2 Notice given for the purposes of subsection (1) shall be treated as received at the time when, in accordance with rules, it ought to have been received.

3 The proprietor of a registered charge may also make a further advance on the security of the charge ranking in priority to a subsequent charge if—

a the advance is made in pursuance of an obligation, and b at the time of the creation of the subsequent charge the obligation was entered in the register in accordance with rules.

4 The proprietor of a registered charge may also make a further advance on the security of the charge ranking in priority to a subsequent charge if—

a the parties to the prior charge have agreed a maximum amount for which the charge is security, and b at the time of the creation of the subsequent charge the agreement was entered in the register in accordance with rules.

5 Rules may—

a disapply subsection (4) in relation to charges of a description specified in the rules, or b provide for the application of that subsection to be subject, in the case of charges of a description so specified, to compliance with such conditions as may be so specified.

6 Except as provided by this section, tacking in relation to a charge over registered land is only possible with the agreement of the subsequent chargee.