What is a Charging order?
When can a lender apply for
a charging order?
What happens when I receive
a charging order?
Will I be forced to sell my
house or land?
What is a Charging
A charging order is an order from the court
placed on a debtor’s property (house
or land) for monies owed to a lender.
If you have borrowed money and the money is
not secured and you have not kept to the repayment
arrangement, a lender can request the court
to place a charging order on your property
so that when the property is sold you will
have to pay that debt off first before any
of the proceeds are given to you.
In basic terms, the unsecured debt becomes
secured on your property.
When can a lender
apply for a charging order?
Before a court will consider an application
for a charging order, the lender must have
issued a county court judgement and you must
have failed to make payments on that judgement
or not paid the judgement according to the
requirements of the court.
What happens when
I receive a charging order?
The lender will apply to the court for a charging
order, once the court has considered the application
and is satisfied with the application, you
will receive the order on a N86 form.
The form will include information regarding
the time and date of the hearing when the
judge will decide if to make a final charging
If the judgement is put in place, you will
receive a N87 form (Final Charging Order),
this form will also be sent to the lender.
The lender will then need to inform the Land
Registry of the order.
Will I be forced
to sell my house or land?
You are not under any obligation to sell your
property once the final charging order is
in place, however, there are some extreme
circumstances where a lender can apply to
a court for force of sale. This is, however,
rare and the court would have to agree to
the application before such an order would