Q&As

A charge holder seeks an order for possession over a property, and a third party with the benefit of a charging order seeks an order for sale over the same property, is there any rule/guidance as to which claim takes precedence or whether one of them would be stayed?

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Produced in partnership with Helen Galley of XXIV Old Buildings
Published on LexisPSL on 05/03/2018

The following Property Q&A Produced in partnership with Helen Galley of XXIV Old Buildings provides comprehensive and up to date legal information covering:

  • A charge holder seeks an order for possession over a property, and a third party with the benefit of a charging order seeks an order for sale over the same property, is there any rule/guidance as to which claim takes precedence or whether one of them would be stayed?

This Q&A assumes that the land in question is registered at HM Land Registry and that the chargeholder referred to is a legal chargeholder ie holds a charge over the legal estate in the property and that their charge is registered in the charges register of the property at the Land Registry. The charge may be a first legal charge or a subsequent legal charge. Between themselves, legal charges rank in priority in the order of registration which governs priority in relation to the right of payment. It is usual for a legal charge to provide that the costs of enforcement can be added to the secured sum and recovered from the proceeds of sale with the sum secured. For more information, see Practice Notes: Priority between security interests, Effect of registration at HM Land Registry or Land Charges Department on priority of security interests, Effect of registering security on priority of security, Tacking further advances to existing security and Mortgages—priority.

A charging order gives rise to an equitable charge. A judgment creditor who is unpaid can apply for a charging order to the court. It is a charge over the beneficial interest of the judgment debtor in the property. If the judgment debtor is the s

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