The Land Registry is taking another step towards full e-conveyancing with the launch of electronic discharges (EDs).

This system will allow mortgage lenders to discharge some of their registered charges electronically.

Abbey National and Nationwide Building Society will pilot the EDs system.

They have re-engineered their redemption processes, to enable their computer systems to transmit a discharge electronically to the registry's computer system when a mortgage account is closed.

The registry's computer system will make a number of checks on receiving the discharge and providing everything is in order will, in most cases, cancel the charge entries immediately on receipt of the discharge.

An ED will not require a separate formal paper application to discharge the charge and, in most cases, will not require any manual intervention.

EDs is a computer-to-computer, system-driven process.

The lenders will tell practitioners in their redemption statement when they intend to discharge a charge by an ED.

Provided the correct payment is received, and it is a case to be discharged by an ED, the lenders will send an ED to the registry.

If accepted, the charge entries will be cancelled automatically.

The lenders will then write to confirm that the charge has been successfully discharged.

After six months, the registry, the Law Society and the two lenders will review how the system has performed.

Following the review, other lenders may wish to use EDs but they will have to synchronise their data with that of the registry and guarantee that they will deal with redemption within five working days.

The registry will be sending information about EDs to all of its credit account holders.

Practice bulletin 6 - Electronic Discharges, has been prepared and is available on the Land Registry's Web site.

Visit: www.landregistry.gov.uk.