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ANALYSIS
"Tacking" describes the means by which a lender, with a charge securing an original advance, is able to use its charge to secure a further advance and obtain priority for that advance over any second or subsequent charges.
Due to the potential prejudice that this can cause, the Land Registration Act 2002 imposes strict controls on tacking. Section 49(3) limits the priority of a registered charge to the original advance and any further advances that the lender is obliged, under the terms of the charge, to make. Furthermore, any such obligation must be recorded on the register at the Land Registry.
The issue in Urban Ventures Ltd v Thomas and another (as administrators of The Black Ant Company Ltd and another company in administration) and another [2016] EWCA Civ 30; [2016] PLSCS...