What Is a Charging Order?
A charging order is a court order that secures an unsecured debt against something you own, usually your home. Once a court grants a charging order, the debt effectively becomes secured, similar to a second mortgage, and the creditor gets paid from the sale proceeds if you sell or refinance the property. A charging order can only follow a County Court Judgment (CCJ). A creditor cannot go straight to a charging order without first getting a CCJ against you.
The Two-Stage Process
Interim charging order
The court grants this first, on a temporary basis, usually without a hearing. It places a notice or restriction on your property at HM Land Registry.
Final charging order
You get a chance to object within 28 days of receiving the interim order. If you do not object, or the court rejects your objection, it makes the order final. A final charging order is registered permanently at the Land Registry until you pay the debt or sell the property.
What a Charging Order Does Not Do
A charging order does not force you to sell your home. It secures the debt against the property, but you can keep living there and continue as normal. The creditor only recovers the money when the property eventually sells, refinances, or the debt gets paid off some other way. In some cases, though, a creditor can apply separately for an order for sale, which is a more serious step that can force a sale. Courts grant these far less often, and only after careful consideration of your circumstances.
How Long Does a Charging Order Last?
A charging order remains registered against your property until you pay off the underlying debt in full, or you and the creditor agree otherwise. It does not expire automatically after a set number of years, unlike a CCJ, which drops off your credit file after six years. The CCJ itself still leaves your credit file after six years, but the charging order can remain registered at the Land Registry beyond that point if the debt is unpaid.
Can You Object to a Charging Order?
Yes. You have 28 days from receiving the interim order to object to a final order being made. The court will consider your personal circumstances, including your household composition, your income and expenditure, and whether the order would unfairly disadvantage any of your other creditors. Getting advice quickly matters here, since the objection window is short and the court needs a properly prepared case, not just a request for more time.
How to Remove a Charging Order
The most straightforward way to remove a charging order is to pay off the underlying debt in full. Once you do, you or your solicitor can apply to the court for a certificate of satisfaction and then update the Land Registry to remove the charge. In some cases, you may be able to negotiate a reduced settlement with the creditor to release the charge early, though creditors are not obliged to accept this.
Frequently Asked Questions
Can a charging order force me to sell my house?
Not by itself. It secures the debt against your property. A separate, less common order for sale is what can actually force a sale, and courts grant these only in limited circumstances.
Does a charging order affect my credit file?
The CCJ that led to the charging order affects your credit file for six years from the judgment date. The charging order itself is a Land Registry matter rather than a separate credit file entry, though lenders may still ask about it when assessing new credit applications.
Can I remortgage with a charging order in place?
It becomes harder, since most lenders will want the charging order cleared first, or will factor it into their lending decision. Some mortgage lenders will release funds specifically to clear a charging order as part of a remortgage.
What should I do if I receive an interim charging order?
Get legal advice within the 28-day window if you want to object. Even if you do not object, understanding your options for repayment or negotiation can help you manage the situation before it becomes final.
Getting Legal Advice
If a creditor has applied for a charging order against your property, our guide to IVA vs bankruptcy and guide to Debt Relief Orders explain formal alternatives that may stop further enforcement action. See our bankruptcy guide for how insolvency options compare.
This article gives general information only. It does not constitute legal advice. Always speak to a qualified solicitor or debt adviser about your specific circumstances, particularly given the short deadlines involved in objecting to a charging order.