Priority of registered charges: the order shown on the register (LRA 2002 s.48)
Liam is the registered proprietor of a freehold house in Hull, England. On 1 March 2026 he granted a legal charge to Ashby Bank plc, and on 5 March 2026 he granted a second legal charge to Bridgeway Finance Ltd. Bridgeway applied to register its charge on 10 March and was registered. Ashby applied to register its charge on 20 March and was registered. Neither lender had the protection of a priority period under an official search, and neither charge contains any provision about priority. Liam has defaulted on both loans.
Which of the following best describes the priority of the two charges?
Choose one answer to see the reasoning.
Worked answer
Correct answer D: Bridgeway ranks first, because registered charges rank between themselves in the order shown on the register.
THE RULE TO REMEMBER
Registered charges on the same registered estate rank between themselves in the order shown on the register, not the order of creation.
Priority of registered charges: the order shown on the register (LRA 2002 s.48)
Section 48(1) of the Land Registration Act 2002 provides that registered charges on the same registered estate rank as between themselves in the order shown in the register. Priority between registered charges does not depend on the order in which they were created, or on notice. Bridgeway's charge was registered first and Ashby's later, and neither lender had a priority period from an official search that could have changed the order of registration. Nothing in the charges or any agreement between the lenders alters the position. Bridgeway therefore ranks ahead of Ashby, and on a sale Bridgeway's debt is paid out of the proceeds first, with Ashby taking only what remains.
Why A is wrong: The order of creation does not govern priority between registered charges; s.48 looks to the register.
Why B is wrong: The equitable first-in-time rule does not govern registered legal charges; s.48 does.
Why C is wrong: Registered charges rank in the order shown on the register, not equally.
Why E is wrong: Knowledge is irrelevant to priority between registered charges under s.48.
A little more practice done.
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