Business loan secured by 2nd charge property

[Bengt Lagander]

I am a business owner my best customer has a £50K HMRC bill, I propose to make customer a business loan for £50k at 1.5% interest per month for 6 mos secured against a 2nd charge property with valuation of £300k and £150 k outstanding to LLoyds. The loan will be non FSA and non CCA and prior consent will be sought from LLoyds however I want to be able to re-possess without delay if a default occurs: can I re-possess without Lloyds consent of our loan defaults and LLoyds loan has not? ; do I need a court order , if so does the mortgage deed need to sate that section 103 of LPA 1925 restrictions do not apply?; how do I stop any tenant in the mortgaged property exercising any prior rights as tenant?; how do I stop the borrower removing the tenant and moving back in should a default occur; if I need to re-possess could I pay LLoyds off and retain ownership?; is there anything else I should be aware of or obvious sources of info you can point me to to? Im being cautious I dont expect a default

[jeffrey]

You need to consult your solicitor and take legal advice*, covering:
a. need for consent from first mortgagee (inc. any fee payable*);
b. contents of second mortgage;
c. registering it at HMLR (inc. paying registration fee*);
d. [if property is leasehold] complying with L's requirements:
i. before completion (e.g. if consent necessary); and
ii. after completion (i.e. Notice of Mortgage, with Notice fee*); and
e. serving on first mortgagee a Notice of Second Charge (with any Notice fee payable*).

* Make the mortgagor pay all your fees/VAT/disbursements, either up-front or by adding to mortgage debt.