Undertaking vs Charge: please explain

Hi all.

I was wondering if someone could outline the difference between a bank having a legal charge over land vs having a letter of undertaking over the land.

Thanks.

What does the letter of undertaking say?

A charge is generally registered on the property so that the property cannot be sold unless the charge is discharged. A letter of undertaking would generally be something along the lines of a solicitor undertaking not to release the Deeds without the consent of the lender - this would be quite unusual unless it was at the start of a conveyancing transaction. Most solicitors would prefer not to hold client's Title Deeds indefinitely.

mf

Thanks mf.