Partial Lien Release Template for England and Wales

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Key Requirements PROMPT example:

Partial Lien Release

"Need a Partial Lien Release to discharge security over Plot 7 of our development site in Manchester, while maintaining the original charge over Plots 8-12, to facilitate the sale of Plot 7 to a first-time buyer closing on March 15, 2025."

Document background
A Partial Lien Release is utilized when a property owner or developer needs to release certain assets or portions of property from an existing security interest while maintaining the lien on other portions. This document is particularly relevant in England and Wales where property developments are completed in phases, or when portions of secured property are sold separately. The Partial Lien Release must detail the specific property being released, the consideration provided, and the remaining security interests. It requires careful drafting to ensure compliance with the Law of Property Act 1925 and Land Registration Act 2002, and typically involves registration with HM Land Registry to perfect the partial release.
Suggested Sections

1. Property Identification: Precise legal description of the property subject to the lien

2. Original Lien Details: Information about the original lien, including date, amount, and registration details

3. Release Extent: Specific description of what portion of the lien is being released

4. Consideration: Statement of consideration received for the partial release

5. Remaining Security: Confirmation of continuing validity of remaining security

Optional Sections

1. Conditions Precedent: Any conditions that must be met before the release becomes effective - used when release is contingent on specific events or actions

2. Future Rights Reservation: Preservation of rights relating to unreleased portions - used when protecting future enforcement rights is crucial

Suggested Schedules

1. Property Description Schedule: Detailed legal description of property being released

2. Original Security Documents: List of relevant security documents being partially released

3. Payment Schedule: Details of any payments made or to be made in connection with the release

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Law of Property Act 1925: Primary legislation governing property rights and interests in England and Wales. Sets out definitions of legal estates and charges, and contains key provisions regarding the creation and release of charges.

Land Registration Act 2002: Legislation governing the registration of land and property interests, including requirements for registered charges/liens and procedures for updating the land register.

The Land Registration Rules 2003: Detailed regulations setting out procedural requirements for land registration, including specific forms and documentation requirements for property transactions.

Companies Act 2006: Legislation relevant when any party is a company, covering execution requirements and company charges registration requirements.

Construction Act 1996: Housing Grants, Construction and Regeneration Act, particularly relevant for liens related to construction work and payment provisions.

Common Law Principles: Established legal principles including doctrine of partial release, principles of secured transactions, and contract formation requirements.

Consumer Credit Act 1974: Legislation governing consumer credit arrangements and associated consumer protection provisions, relevant if the underlying debt involves consumer credit.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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