This is usually done through obtaining a mortgage or loan from a bank. What the bank requires as security for the loan will vary depending on whether they are lending to an individual or a business.

A business that is a registered company in the United Kingdom will usually be able to secure a loan through a charge on either a particular asset (“fixed charge”) such as the business premises or a charge over all the assets the company owns (“floating charge”). Either or a combination of these charges are usually created by the company entering into a debenture in favour of the bank which is subsequently registered at Companies House and at HM Land Registry.

For an individual the bank will take a charge in the form of a mortgage over the property as security for the loan, effectively making them a co-owner of the property with the right to repossess and sell the same should the individual fail to make the mortgage re-payments.