What Is a Charging Order on a Property? A Creditor’s Complete Guide

A charging order on a property is a court order that secures a judgment debt against a debtor’s property. Once granted, it means the creditor must be paid from the proceeds if the debtor sells or remortgages the property. It does not automatically force a sale — but it protects the debt and can lead to an Order for Sale if the debtor continues to refuse payment. Charging orders are governed by the Charging Orders Act 1979 and the Civil Procedure Rules Part 73.

Key fact: A charging order is only available once a creditor already holds a County Court Judgment (CCJ) or High Court Judgment. It is a post-judgment enforcement tool — not a standalone debt recovery method.

What Is a Charging Order and How Does It Work?

A charging order converts an unsecured judgment debt into a secured debt — one attached to a specific asset, in this case the debtor’s property. Before a charging order, the creditor’s CCJ is an unsecured claim. After a charging order, it sits alongside a mortgage as a charge registered against the title.

The practical effect is significant. Once a final charging order is registered at HM Land Registry, the debtor cannot sell, remortgage, or transfer the property without the creditor’s debt being discharged from the proceeds. The charging order is visible to any solicitor or conveyancer acting on a future sale — it cannot be ignored.

What a charging order does:

• Secures the judgment debt against a specific property
• Prevents the debtor selling or remortgaging without repaying the debt
• Continues to accrue statutory interest at 8% per annum on the judgment debt
• Provides the foundation for a later Order for Sale application if the debtor still refuses to pay
• Gives the creditor priority over unsecured creditors if the property is eventually sold

What a charging order does not do:

• It does not automatically force the debtor to sell their property
• It does not prevent the debtor from living in the property
• It does not guarantee that the creditor will be repaid if there is insufficient equity
• It does not take priority over a first mortgage — the mortgage lender is repaid first

The charging order is a long-term enforcement tool. For creditors whose debtor owns property but is actively avoiding payment by other means, it is often the most reliable route to eventual recovery — even if the timeline is uncertain.

How Do You Get a Charging Order on a Property?

The process for obtaining a charging order is a two-stage court procedure. Both stages are necessary — an interim order alone is not sufficient.

Step	Action	Form / Authority	Who acts
1	Obtain a CCJ or High Court Judgment against the debtor	Judgment from county court or High Court	Creditor (or solicitor)
2	Apply for an interim charging order	Form N379 (single) or N380 (multiple debts)	Creditor applies to court
3	Court makes interim charging order	Court order issued — served on debtor and mortgage lender	Court
4	Register interim order at HM Land Registry	Form K2 — creates a restriction on the title register	Creditor registers
5	Final hearing — court confirms or discharges order	Court hearing — debtor can object	Both parties attend
6	Final charging order granted	Registered at HM Land Registry — permanent restriction	Court confirms; creditor updates register
7	Apply for Order for Sale if debtor does not pay	Separate court application — Part 73 CPR	Creditor applies if debt remains unpaid

Stage 1: The interim charging order. The creditor files Form N379 (or N380 for multiple debts) at the court that dealt with the original judgment. The court makes an interim order without a hearing. This interim order is served on the debtor and on any mortgage lender. The creditor should register it at HM Land Registry immediately — using Form K2 — to protect their position while the final order is pending.

Stage 2: The final charging order. A hearing date is set, usually 28 days after the interim order. The debtor can attend and object — for example, arguing that other creditors should be considered, or that the property is a family home with dependent children. If no valid objection is raised, the court confirms the final charging order. The creditor updates the registration at HM Land Registry.

The process requires care with procedural detail — the wrong court, the wrong form, or a failure to register the interim order promptly can cause significant delays. Shergroup’s B2B debt collection team advises creditors on whether a charging order is the appropriate enforcement route for their specific judgment and debtor.

What Is an Order for Sale — and When Can a Creditor Apply for One?

An Order for Sale is a separate court application that asks the court to order the debtor’s property to be sold so the judgment debt can be paid from the proceeds. It is the mechanism by which a charging order converts from a passive security into active recovery.

An Order for Sale is not automatic and is not guaranteed. Courts approach these applications carefully — particularly where the property is the debtor’s main home, where children live there, or where there are other co-owners who are not judgment debtors.

Factors the court weighs when deciding whether to grant an Order for Sale:

• The size of the debt relative to the value of the property
• Whether the property is the debtor’s primary residence
• Whether dependent children or vulnerable adults live in the property
• Whether other enforcement options have been genuinely exhausted
• The interests of any co-owner of the property who is not a judgment debtor
• The total amount of other charges on the property and the available equity

In practice, courts are more willing to grant Orders for Sale where:

• The debt is substantial — courts rarely order the sale of a family home for a debt under £25,000
• The debtor has shown persistent non-compliance with payment obligations
• The property is investment or commercial property rather than the debtor’s main home
• There is clear equity in the property available to satisfy the debt after the mortgage is repaid

The Order for Sale application is made under CPR Part 73 and requires a formal court hearing. The creditor must demonstrate that the charging order is final, that the debt remains unpaid, and that a sale is proportionate in the circumstances.

Shergroup advises creditors on the full range of enforcement options — including whether a charging order, a Writ of Control, or a combination of both is the right approach for your specific case. Contact Shergroup today — we respond the same working day.

Charging Order vs Writ of Control: Which Enforcement Route Is Right?

Creditors with a CCJ against a property-owning debtor often face a choice: pursue a charging order (securing against the property) or instruct a High Court Enforcement Officer to enforce via a Writ of Control (seizing goods and vehicles). These are not mutually exclusive — the most effective enforcement strategy often uses both simultaneously.

Factor	Charging Order	Writ of Control (HCEO)
Debtor has property?	Best route — secures against property	Can still be used if debtor has other assets
Debtor has goods/vehicles?	Slower — waits for property sale	Best route — immediate enforcement
Speed to recovery	Slow — may wait years for property sale	Fast — 10–14 days from instruction
Forces immediate payment?	Only if Order for Sale is granted	Yes — Notice of Enforcement generates immediate pressure
Debt amount suitability	Worth pursuing for debts of £5,000+ (court costs)	Effective from £600 upward
Debtor’s main residence?	Courts cautious — Order for Sale harder to obtain	Not relevant — goods enforcement unaffected
Best combined with?	Use alongside Writ of Control for maximum pressure	Use alongside charging order if debtor owns property

The combined approach. For a debtor who owns property but also has business assets — vehicles, machinery, stock — the strongest enforcement position is to apply for a charging order and simultaneously instruct an HCEO under a Writ of Control. The charging order creates long-term security. The Writ of Control creates immediate pressure. Many debtors pay when they discover both mechanisms are in motion at the same time.

Shergroup’s High Court Enforcement Officers and debt recovery team work together to assess which approach — or which combination — produces the fastest and most cost-effective recovery for each specific case.

What Happens to a Charging Order When the Property Is Sold?

When a property with a charging order registered against it is sold, the charging order is discharged automatically from the sale proceeds at completion. The process is managed by the conveyancing solicitors.

The mechanics at completion:

1. The buyer’s solicitor searches HM Land Registry and identifies the charging order restriction on the title register.
2. The seller’s solicitor contacts the charging order creditor to obtain a figure for the amount required to discharge the order — the judgment debt plus accrued interest.
3. At completion, the discharge sum is paid to the creditor from the sale proceeds before any net proceeds are released to the seller.
4. The creditor provides a Form K10 (application to cancel a registered charge) or equivalent confirmation of discharge.
5. The restriction is removed from the title register and the sale completes.

The creditor has no control over when the debtor sells — but when they do, the charging order ensures the debt is repaid before the debtor receives any proceeds. This makes it a reliable long-term enforcement mechanism for creditors whose debtor has property equity but is refusing to pay.

Interest continues to accrue at 8% per annum on the judgment debt from the date of judgment until discharge. For a substantial debt, this means the longer the debtor delays, the more they will ultimately pay.

For creditors who need to pursue recovery now rather than wait for an eventual property sale, combining the charging order with an immediate CCJ Transfer to the High Court for goods enforcement maximises pressure on the debtor from multiple directions simultaneously.

Frequently Asked Questions About Charging Orders on Property

What is a charging order on a property?

A charging order is a court order that secures a judgment debt against a debtor’s property — typically their home or a buy-to-let. Once registered at HM Land Registry, it means the creditor must be repaid from the proceeds when the property is sold or remortgaged. A charging order does not automatically force a sale, but it prevents the debtor from selling the property without repaying the debt. The creditor can apply for an Order for Sale to force sale if the debtor refuses to pay.

How do you apply for a charging order on a property?

To apply for a charging order, the creditor must first have a County Court Judgment or High Court Judgment against the debtor. The creditor then applies to the court using Form N379 (for a single charging order) or Form N380 (for multiple). The court makes an interim charging order, which is served on the debtor. A final hearing is then held, at which the court confirms the order. The creditor registers the charging order at HM Land Registry using form K2.

Does a charging order force the debtor to sell their property?

No. A charging order alone does not force a sale. It secures the debt against the property, meaning the creditor is repaid when the property is sold or remortgaged. To force a sale, the creditor must make a separate application to the court for an Order for Sale. Courts will consider the size of the debt, whether the property is the debtor’s main home, whether other people (such as children) live there, and whether other enforcement options have been exhausted.

How long does a charging order last?

A charging order remains registered against the property indefinitely until the debt is repaid or the order is set aside by the court. It does not expire after 6 years like some other enforcement methods. If the property is sold, the charging order is automatically discharged from the proceeds at completion. If the debtor never sells, the charging order remains in place and continues to accrue interest until the debt is satisfied.

Can a creditor get a charging order if the debtor jointly owns a property?

Yes. A creditor can obtain a charging order over a debtor’s beneficial interest in a jointly owned property. However, the courts are more cautious about granting Orders for Sale on jointly owned properties — particularly where a co-owner (such as a spouse or civil partner) is not the judgment debtor. The creditor can still register the charging order, which protects the debt on any eventual sale or remortgage of the property.

Ready to explore charging order enforcement?

Shergroup advises creditors on whether a charging order, a Writ of Control, or a combination of both is the right route for their case. Contact Shergroup’s debt collection team to discuss your judgment. We respond the same working day.

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