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A charging order is a powerful legal tool that enables you to secure a debt against property, land, or investments owned by the debtor. This prevents the asset from being sold or refinanced without the debt being settled.
At Franklins Solicitors LLP, our debt recovery experts help clients across Milton Keynes and Northampton take decisive steps to protect and recover what they are owed through well-executed charging orders.
What Is a Charging Order?
A charging order links a court-ordered debt to a debtor’s physical or financial asset—typically a property or land. It does not immediately enforce payment but ensures the debt is repaid when the asset is sold or remortgaged.
It is particularly useful when:
A charging order can remain valid even if the debtor later declares bankruptcy, provided it was issued beforehand.
Charging orders are best suited to:
The court may view this remedy as disproportionate for small debts, so it is often unsuitable in low-value claims.
Not immediately. A charging order acts as a legal charge on the property. You may apply separately for an Order for Sale to force a sale, but this is a last resort and subject to judicial discretion.
Otherwise, you will be paid when the asset is eventually sold or refinanced.
Can I add interest to the debt once a charging order is in place?
Interest can be added in some cases, but not if the debt is under £5,000 or covered by the Consumer Credit Act.
Does a charging order apply to the person or the property?
It applies to the debtor’s interest in the property, not the property itself. If sold, the order must be satisfied or transferred with the debtor’s interest.
What happens if the debtor jointly owns the property?
You can still apply for a charging order, but it will only attach to the debtor’s share of ownership.
Why Choose Franklins?
A charging order secures a debt against a property, meaning if the property is remortgaged or sold before the debt is cleared that the creditor has the right to request funds from the proceeds.
A charging order hearing will hear evidence from both the creditor and the debtor and consider whether to allow a charging order to placed on a property.
Upon application to the court, a charging order can be enforced against a property to service a debt.
Whether interest can be added to the charging order depends on the type of debt that is owed. If the debt is regulated by the Consumer Credit Act or is less than £5000, interest does not apply.
The charge orer should apply to the inviduals who owe the debt, and not the property. If a charging order existed on a property, that charging order should either be removed when the property is sold or the charging order would transfer with the previous owners of the property.
If you have any questions about charging orders, please don’t hesitate to contact our team of experts who are on hand and ready to help you.
