Q&As

Where a creditor has registered a restriction against the title of a registered property pursuant to a charging order, what courses of action are available where it is notified that the property is to be sold?

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Produced in partnership with Georgia Whiting of Ardmore Group Limited
Published on: 05 July 2018
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The difficulty a judgment creditor with the benefit of a Charging order faces, is that a charging order does not by itself release Funds to satisfy the debt. An order for sale will either first have to be obtained, or the creditor can simply wait until the property is sold.

Furthermore, a charging order will not give any practical protection where there are prior charges which take Priority. This can result in the creditor receiving nothing if the property is sold, but there is insufficient Equity to pay all charge holders.

A further practical difficulty with a standard Form K restriction is that the property could in theory be sold prior to the judgment creditor being informed.

There are a number options that a chargee can consider where they are notified that the charged property is to be sold. If,

Georgia Whiting
Georgia Whiting

In-House Legal Counsel, Ardmore Group Limited

Georgia is employed as Legal Counsel at the Ardmore Group, a large family owned and operated construction contractor. Her role is varied and includes both contentious and non-contentious matters. 

Prior to this, she was a self-employed barrister at 4 King’s Bench Walk, where she remains as a Door Tenant. Her work included advising and acting in relation to issues arising out of construction, property development and refurbishment. 

Her common law background also enables her to advise in respect of linked areas relating to property and construction and associated litigation, such as employment, insolvency and negligence. Her time at a City Law Firm prior to obtaining Pupillage also equipped her with an understanding of commercial realities from multiple perspectives.

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Jurisdiction(s):
United Kingdom
Key definition:
Charging order definition
What does Charging order mean?

An order whereby a judgment is enforced by securing the judgment debt with a charge on any land or other real property, or securities, owned by the judgment debtor.

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